Borrowing to invest

Most people in Perth consider it to be an advantage to be without debt. This is a very sensible and conservative policy to have, but there are a lot of evidences these days proving that people are more willing to borrow and get into debt that ever before. Over the years, debt levels continue to grow over the years. Why is this happening?

If you don’t have an idea why people keep on borrowing money, you probably haven’t heard about gearing. Gearing in finance is also known as borrowing to invest. It includes any type of borrowing to invest, whether it is cash loans for purchasing shares, or a large loan for an investment property or a new business.

While gearing is often considered to be highly risky, there is good debt as well as bad debt and the association of high risk with gearing only applies if the borrower has failed to plan for their gearing.

Businesses and individuals at some point borrow money to make a purchase or to invest. When investing, borrowing allows us to almost instantaneously access more funds so that we can reap larger returns on our investments. If we got more funds, we can take advantage of the opportunities as we grow and diversify our investment.

Apart from being able to grow your business, investment or capital, borrowing to invest is also tax effective. The interest payments on the loan are normally tax deductible only to the extent that the loan amount is used to purchase the shares. In these circumstances generally, borrowing to invest may give you some tax advantages.

Borrowing to invest

However, borrowing to invest also comes along with risks. The more you borrow, the greater the risk becomes as you have the repay the money you borrowed regardless the performance of your investment.

To learn more about the pros and cons, as well as other important information about gearing or borrowing to invest, check out this post:

Setting Investment Goals to Reach Financial Independence

Investment Questions About Financial Independence

Most of us want to become build wealth and become rich. This is a fact especially to those who are not born wealthy. However, many do not know how to do this and keep on their bad financial habits. What they do not realise is that the best way to build wealth is to be disciplined and invest wisely.

When investing however, the first place to start is to establish your investment goals. Once you have an idea of what objectives you want to achieve, you will have a clear picture of the types of investment you will need to make to get you there. Setting up investment goals will help you to know what you want out of your investments.

By setting investment goals, you are defining why you are investing. You are establishing a time frame for your investments. With the help of your investment goals, you are able to see what investments are appropriate for your goals. You are also able to check the progress of your investments to make sure that they are on track towards your investment goals.

Asking yourself a number of questions is basically the key to setting up investment goals. To learn more about investment goals, you definitely need to read this:


More from Directorio Raiz Perth Businesses:

The Value of Bathroom Showers

Borrowing to Invest

Establish A Niche To Quickly Grow Your Business

15 things successful people do over holiday breaks

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If you think about some of the most famous and successful entrepreneurs in Perth WA and from all corners of the world nowadays, you will probably notice some characteristics that separate them from the rest. Despite the fact that many business owners and leaders out there, only a few of them are making sound business decisions every day.

To become good, you need to have business savvy. However to become truly successful, there are a handful of traits you need to have. One of those traits is determination. You need to have drive if you want to accomplish big things. You need to wake up every morning motivated to climb higher and higher up the ladder. For that, you need determination. This trait is what keeps you going when critics are telling you not to bother. If hearing “no” just makes you even more determined to succeed, you’ve got this one in the bag.

Secondly, you should not be afraid of risk. Risk-assessment can be critical for a business, and, of course, you need to make sound decisions. However you also need to be a risk-taker and allow yourself to throw caution to the wind once in a while. There are times when you have to follow your instinct and not your accountants, even if it means risking it.

These are only some of the many traits that successful entrepreneurs posses that separate them from the rest. In fact, even on holiday breaks, these successful people do things differently.

Read the article about this topic here:

To read our article about bathroom showers, click this link.

Small Business Advice from the Honest Tea CEO

As with any career, there are no guarantees that starting a small business or becoming an entrepreneur will make you satisfied and successful.

Start small, but keep your ideas big.

When you start your own business, you become your own boss and you will be empowering yourself to take control of your own destiny. However, entrepreneurship will also present many challenges along the way. So why start a small business and will it bring you the happiness and the lifestyle that you yearn for?

Today’s economical downturn continues to cause uncertainty. This results for more and more people to quit their job and start a small business. Some are taking this route by choice, while others are being forced due to not earning enough money, personal debt soaring and becoming fed up of waiting for things to improve.

But can anyone be successful in entrepreneurship? Unfortunately, the answer is no. Even if you have the best small business ideas in the world, have a great work ethic and a determination to succeed, these things alone will not guarantee you success because there are many factors that make up a successful business.

Succeeding in business is not easy but Seth Goldman, the CEO of Honest Tea, is one of the few who become very successful. In an article published by Reader’s Digest, Goldman shares four lessons learned on his way to brewing up a big success.

Read the full article here:

How You Know You’ve Created the Company of Your Dreams

Starting your own business – just the sound of the phrase, it conjures up images in the mind of entrepreneur. When you talk about starting your own business, you can easily think about freedom, money and fulfilment.

Perth Business NewsStarting your own small business in Perth is an opportunity available to millions of individuals in the country of Australia in which we live, but with every opportunity there come liabilities.

Taking control of their own lives is the dream of many Australian and running their own business is the way to achieve this dream. It will be a tough challenge, but this only makes success all the more rewarding when it comes.

If you want to quit your job and to build your own company, it is worth considering all the important tips and fundamental knowledge about entrepreneurship rather than rushing headlong into something without the necessary preparation.

People build their own company not because it is the most convenient nor easy option, but because these people are mentally, emotionally, physically and mentally prepared to start their own venture. Sadly, entrepreneurship is not for everybody. Only a few people are capable to take this challenge so you really need to evaluate yourself first before you make a business loan and start your company.

If you already have created your company, you don’t have to worry. There are some ways to know whether or not you have built the company that suits you.

Check out this article from to find out:

Establish A Niche To Quickly Grow Your Business

Many small business owners in Perth start out by believing that their products or services appeal to all people. This is the reason why they invest a lot of money to their business and continue to sell their products or services to everyone.

Perth Business News

Find your niche

However, one issue with this is that small businessmen thought that they can immediately compete with big companies. The truth is, as a small business, it’s usually very tough to go against the giants who have been in the industry for years.

One of the most common mistakes small businesses commit is when they try to making an appeal to everyone and ending up looking bland and impersonal to their clients. Hence, they fail to get the attention and patronage of their targeted customers.

In order to become successful with your small business, the best thing you can probably do is to avoid becoming the jack of all trades, and master of none. Instead, you should focus on your niche. Focusing on a specific market gives you the chance to get to know your customers: their interests, personalities, and what kinds of products they are likely to buy. Having in a niche that is perfect for your business allows you to know how to grab their attention and ultimately communicate with them.

If you want to know what the perfect niche for your small business is, you should check out the article written by Forbes’ Ian Altman. The article will teach you how to establish a niche for your business’ quick growth.

Read the full article here:


You may also read our blog post about bathroom showers.