Picture this:You’ve got a few dollars in your pocket and you’re thinking about where to put it. You wonder if you should buy a few shares of your favorite companies.
You might want to try something trendy and buy Bitcoin. Or, you might want to head to a casino and try your luck at Blackjack or at the Roulette table.
So which is the better option? Investing or gambling? We think of these as being different but they have a lot more in common than we might have considered.
When it comes to investing vs gambling, what’s the best option for us to generate more wealth? Here’s what you should know.
What Is Investing?
Investing refers to placing your money in a store of value that you believe will appreciate over time. You might want to buy stocks that you believe will rise in price.
Or you might buy real estate that you hope to rent or sell at a later date. You might even invest in your friend’s startup because you believe it’ll become “the next big thing.”
Investments get made after the investor has done their research. Before you buy stocks in a company, you spend your time researching the company and the industry.
You might feel that because gun sales are up, it’s wise to invest in Smith & Wesson.
Or with the rise of remote work, you might invest in communication apps such as Zoom. You might also want to invest in digital payment services such as PayPal and Square.
Because intelligent investing requires research, it’s often taken more seriously for anyone who wants to build wealth.
What Is Gambling?
This method of increasing your monetary value is much faster than investing. As such, gambling often has a negative stigma by most serious investors. It’s seen as a way to attract the “get rich quick” crowd.
The major advantage of gambling over traditional investing is that your winnings are immediate. Once you win a game, you can collect your money. The disadvantage is that gambling is far riskier than long-term investing.
However, there is a wise way to gamble your money and make great winnings. While gambling is often done in a physical casino, there are many great online options.
If you choose to use any of the best online gambling sites you can find many perks. These can include free money to place your first bet to playing lower risk games.
Professional gamblers are able to assess the risks of a wager. They know when it’s wise to make a bet and when to stay out. They know when it’s wise to place a small bet and when to “go all in.”
Investing VS Gambling: Which Is for Me?
So how do you choose which is the best method for you to generate wealth? Your first goal is to think about what your financial goals are.
Do you want to build wealth in the long run? Are you willing to wait at least 5 years to see your winnings? Are you willing to wait 10 years to cash out on your earnings? This is what the investing route entails.
Many people might miss out on investment opportunities because they don’t want to delay gratification. You have to have patience and self-control as you won’t see instant results.
Gambling does bring instant results. Within one day, you can turn a few dollars into thousands.
This is what attracts most people who want to increase their finances. But the trade-off is the high level of risk.
What many gamblers miss out on is that there’s a strategy in gambling. If you assume it’s all luck, you will lose your fortune with gambling.
Make sure you familiarize yourself with gambling strategies before placing your bets.
Once you decide which is the best route for you, the next step is to understand how to succeed with the route you choose.
Let’s discuss how you can get an understanding of both routes. With investing, you want to figure out which asset classes work best for you.
While you should diversify in the long run, the first step is to find one asset class to invest in. This can be a stock, real estate, or a company.
Make sure to understand the industry you want to invest in. For example, let’s assume you want to invest in the food industry. Make sure you spend a lot of time understanding this industry.
Do you know what the most profitable food companies are? Do you think it’s wise to invest in restaurants or in food delivery services?
Do you understand the trends in the food industry? Do you know which companies are following these trends?
Don’t make an investment until you understand the industry.
For gambling, you want to stick to one game at first. Make sure you play trial rounds of the game before heading to a casino. If you choose poker, try to take online classes and tutorials on how to master the game.
Play poker with your friends on a regular basis. You can bet with poker chips to test out how well you win.
Once you feel comfortable with the game, then you can head to your casino. Even if you feel confident, you have to start placing small bets. Start with making small winnings so you master the game within the casino setting.
If you choose an online casino, take advantage of the free bets and perks for beginners. You have to gradually work upwards to placing bigger bets and taking bigger risks.
Build Your Wealth
Now that you understand the differences and similarities between investing vs gambling, you can choose the best routes for you. Your ultimate goal is to build your wealth. You have to assess whether you can wait or you need to build wealth fast.
Once you’ve decided, make sure you dedicate your time to mastering the skills. Both investing and gambling require rigorous study for success. If you mindlessly make an investment or place a bet, you’ll never reach your financial goals.
Please share this guide with others who wish to build their wealth. You can find more great financial content on our website.