Borrowing to invest? Everyone is doing it.

A lot of people will consider this once or twice in their life: 'Should I borrow money to invest into an opportunity?' The answer will depend on your own risk tolerance and what you are investing into. I know...what a disappointing answer. But at the end of the day, if you did your research, then the strategy is a viable. You'll need to understand all the risks and figure out how to mitigate it.

However, what I wanted to express in this post is that a lot of people are already doing it without realizing it. MORTGAGE! That's right, when you get a mortgage, you are basically borrowing money and investing into the housing market. The "dividend" from your investment is having a place to live.

I remember the first time someone said that to me... My mind was blown. Imagine if I told you I have a $200,000 mortgage, you will think I am a normal sane person like everyone else. But what if I told you I borrowed $200,000 and invested into Bell (TSX: BCE), you'll probably think I am a crazy adrenaline junky with a serious gambling problem. Why the drastic difference? Because a lot of people believe that real estate is low risk and the stock market is pretty risky. The truth is all investments are low risk if you know what you are doing and high risk if you don't. If you already have a mortgage then you are already investing. The next step is to start diversifying your investments, don't put all your investment into your house.