How many times have you been in a discussion where you are talking about finances, and you start wondering whether you are gambling with your assets or whether you are investing into them?
All of us have been in a situation where we have no idea what we are doing with our finances, and it is definitely nerve-wracking. It puts things in perspective, and it will give us a wake-up call, for us to better handle our finances. There is a difference between gambling and investing. I will be talking about that down below.
Sometimes we tend to gamble with our investments, and sometimes we end up profiting from them, and sometimes we lose. When we do this, we are gambling with our assets.
The difference between gambling and investing is very simple. Gambling is the process of betting on something and taking the chance, to see if you are going to make a lot of money.
Investing is when you put in a certain amount of finances into an asset to see if it makes you a lot of money, in the long term. Sometimes an investment can payout in the short-term as well.
According to my understanding, gambling is all about quick money. But, investing is all about long-term investments on your assets.Sometimes, we start gambling with our assets, to see if they make us more money. The line gets thinner when we do this.
Isn’t it an inherent behaviour of a human being to make more money, so that he or she can be more comfortable, so that he or she can provide more for their family members and friends?
At what point do we tell ourselves that we should be more careful with our assets?
Gambling is something that is very risky, and some people might say that investing is not as risky as gambling. But, I would like to tell you that investing can also be very risky. It can be risky, because a lot of people invest in start-up companies and sometimes, these start-up companies go belly up. That would mean that your investments have been flushed down the toilet, the same way you end up losing money when you gamble.
That is why, when people have a certain amount of money to invest, invest in safer things. They invest in things that will yield them a lot of money, but in the distant future.
I have heard from scores of people that investments are like safety nets. They depend on them, in case anything goes wrong with their everyday finances.
That is why, in today’s world, it is essential that you make some sort of investments to pose as a safety net, but gambling is not essential.