Is Investing the Same as Gambling?
By gambling you are taking a big chance that you might either win a lot of money, or you might lose a lot of money. You are playing a game and you don't know what's going to happen.
For some, investing is also a game. By investing, you are putting your money into something that you really believe will increase in value and be successful. If the investment is successful, you make money. Some people play with the market as a game and have fun with it. Others do it solely to make money and have no desire for enjoyment. Why don't they look at it as a game?
Investing is not the same as gambling. There are many different ways to invest your money, and some ways are not even close to gambling. When you invest in a government bond, you are guaranteed your principle and interest. It's not a gamble if you know for sure you're going to be paid back. There is a slight possibility that they government won't pay you back, but the government would have to be in a lot of trouble for that to happen and getting your money back would be the least of your worries.
When it comes to stocks, investing is still very different from gambling. When you buy a stock, you buy a piece of the company. You own part owner of that company. You are invested in that company which means when they make money, you could get dividends, or when they are doing well, the price of the stock will go up.
What about when you bet money at a casino or at a horse race? You don't own part of anything. You can't rely on the success of a stable business to make you money. You are just taking a chance that you could win. A low chance at that.
You can use investing as another source of income. By investing, your money is working to earn money just as you do at your job. If you ever inherit or win a lot of money, never gamble it. Invest it in a low risk, stable investment and that money can grow exponentially over time.
Let's look at an example. You win $10,000 in a small lottery game, (which by the way is gambling to). You could go to a casino and double it 5 times, or even just once, but the chance of that happen is next to nothing. You'd probably end up losing it no matter how good a gambler you think you are. Or, you could put it into a stable mutual fund earning 8% a year for 30 years and even without adding anything to it have $100,000 by the end. What do you think? - 23222
For some, investing is also a game. By investing, you are putting your money into something that you really believe will increase in value and be successful. If the investment is successful, you make money. Some people play with the market as a game and have fun with it. Others do it solely to make money and have no desire for enjoyment. Why don't they look at it as a game?
Investing is not the same as gambling. There are many different ways to invest your money, and some ways are not even close to gambling. When you invest in a government bond, you are guaranteed your principle and interest. It's not a gamble if you know for sure you're going to be paid back. There is a slight possibility that they government won't pay you back, but the government would have to be in a lot of trouble for that to happen and getting your money back would be the least of your worries.
When it comes to stocks, investing is still very different from gambling. When you buy a stock, you buy a piece of the company. You own part owner of that company. You are invested in that company which means when they make money, you could get dividends, or when they are doing well, the price of the stock will go up.
What about when you bet money at a casino or at a horse race? You don't own part of anything. You can't rely on the success of a stable business to make you money. You are just taking a chance that you could win. A low chance at that.
You can use investing as another source of income. By investing, your money is working to earn money just as you do at your job. If you ever inherit or win a lot of money, never gamble it. Invest it in a low risk, stable investment and that money can grow exponentially over time.
Let's look at an example. You win $10,000 in a small lottery game, (which by the way is gambling to). You could go to a casino and double it 5 times, or even just once, but the chance of that happen is next to nothing. You'd probably end up losing it no matter how good a gambler you think you are. Or, you could put it into a stable mutual fund earning 8% a year for 30 years and even without adding anything to it have $100,000 by the end. What do you think? - 23222
About the Author:
How does the stock market work to increase your wealth? Don't let the stock market keep you confused. Learn how to buy stocks safely to start safely investing your money today.
posted by X - Men @ 9:12 AM
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