Could you speed up your wealth by borrowing money from friends and family?
Just a little bit of a weird and random thought, but I think it could make sense.
Lets start with debt, not a whole lot of people want to get into debt since it can be challanging to get out of again, if its in the normal regular sense of the word it implicates interest rate which can be high.
The reason to borrow from friends and family would be to get around the interest rate which eats in profits.
Debt
a sum of money that somebody owes
When this idea first came to mind, it was build on borrowing a small amount of money like 10 bucks or so, but borrowing it from "a lot" of friends or family. But that 10 bucks might be a bit too little if it have to have any impact right?
So I think 50 bucks would be ideal.
I think its important for it to be a small amount of money, so it doesn't create a situation where you wouldn't be able to pay it back to someone if they really needed, also meaning it should be small enough that the people you borrow it from, should really need it long term.
Because I would 100% invest all of these "small" amounts into stocks and get a bigger dividend down the road, which would increase my portefoile and weath creation and all of those small amounts will tally up to something useful for 1 person :D
We can keep the math simple and easy. You borrow 50 bucks from 10 friends and you now have 500 bucks.
Invest that into Coca-Cola and you get 7.968 shares (lets say 8).
1 share nets you a dividend of 1.76 usd pr year.
1.76 * 8 = 14.08 usd per year in dividend from other peoples money!
Now you might still owe people 500 bucks in total, but if they do not need those in years to come, you will 100% have earn it back slowly!
Also, this does not take compounding or rebuying of shares Quarterly into account.
I might honestly go ahead with this and ask people for a little money xD