Money lending as a side income in the Philippines is very popular. It has become so that some people have even made it as a major income. But because many people and private lending institutions are engaged in this business, competition has become very stiff. So the interest rate in lending has lowered from 20% to 10% to 5%, and even to 4% per month.
I don’t lend money. I used to borrow money. That’s why I know the current interest rates.
I am into stock trading and I enjoy what I’m doing. I have found out that it is possible for you to earn these rates in a month, days, minutes, or seconds. In fact, the highest rate a stock goes up in a day is 50%. The opposite can also happen to your money but that can also happen in money-lending. But that is another story.
Here are the reasons why in my opinion, stock trading is better than lending money. I have listed them in no particular order:
1. No networking. You don’t need other people to operate your business. No need to advertise like, “I have a little money. Just let me know if you want to borrow.”
If nobody knows, nobody borrows, therefore you don’t earn. So the more people you recruit, the bigger your earnings will be.
In stock trading, you operate alone. You don’t pay any agent to lend your money. You pay your broker a smaller fee, but you don’t pay someone to manage your money because you are managing your money yourself.
2. No overhead costs. Your home is your office or wherever you are as long as you have an internet connection. You don’t need to rent an office and pay your employees and the office maintenance bill.
3. Nobody bothers you. Nobody goes to your house or wherever you are, looking for you to be able to borrow money. In stock trading, your clients are online, you don’t need to get to know them, see them, nor talk to them.
4. It is less risky. Let’s face it. All businesses have risks. If you lend money, sometimes you don’t get paid. If you do get paid, it sometimes takes a very long time. Sometimes, there’s no collection from a client in a month or months, therefore, the money that you lent him comes to a standstill. You get upset, mad, worried, and can’t sleep well because you are thinking of this person who took your money without giving it back. You become stressed.
You think you are safe because you’re holding his ATM? What if you find out that there’s nothing in there? What if it was blocked by the owner to be sold to another lender? This happens and this is the lender’s worst nightmare.
Stock trading is also risky but you have to fear yourself more than be afraid of risks. If you can’t discipline yourself, then you are your worst enemy.
5. You can trade in your underwear. You can even go naked if it makes you happy. Why? You’re trading in your bedroom with only your laptop or your cellphone in front of you.
My point here is, you don’t need to dress up because you’re going out to meet people and collect money. Heck, I can even earn money without combing my hair. But there’s more to that. I am able to save on lipstick and face powder.
6. No transportation cost. You don’t need to go out of the house to earn it. This is self-explanatory.
7. No security threat. You have seen on tv news about money lenders who were murdered for their money. Because if you lend money, many people know that you have money. That’s good for business but bad for your safety. Better secure your house and yourself when you’re on the streets.
When you’re into stocks trading, no worries. Other people don’t need to know, if you’re more comfortable with that.
8. You can keep this a secret. So you are spared from the awkward situation of turning people down when you don’t trust them with your money. No explanation, no hassle.
9. You can start small. You don’t go into money lending business with only P5,000.00 for a start. (If you lend money, people in need will flock to you only to be denied because you ran out of funds.) But in stocks trading, you can. In fact, I would advise you to start small as you’re only learning the ropes of the business.
10. No bookkeeping. You don’t need to keep records of people who owe you and how much. In stock trading, all your business transactions are recorded by your broker for you.
So all you need to do here is learn about the business as what you would do in any business. Take risks for every business entails risks. But bear in mind that the bigger the profit of the business, the bigger the risk.