Is Investing the Same as Gambling?
Gambling is a game, a contest. When you gamble, you take a chance that you will increase your money or lose your money. There's no way of knowing what will happen.
Some people play with investing like a game. When you invest your money, you believe that the company you invest in will be successful and the investment will increase in value. Some people who look at investing as a game want to make money, but they also enjoy themselves. Others just do it to make money. Why don't the others look at it as a game?
Investing is not a gamble. Some types of investments are so obviously not like gambling. For example, you may decide to put some money into government bonds. You are guaranteed the money back plus interest. It can't be a gamble if you know you're going to get money back. There is the smallest chance you won't get your money back, but that would have to be because the government is in a lot of trouble, and I think you'd have more to worry about than getting your money back.
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.
If you bet money at a horse race or put money down at a poker game, you own absolutely nothing. Whether or not you make money doesn't depend on the success of a business. It is completely by chance if yo make money.
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.
For example, we'll say you inherit $10,000 for an Aunt. You could either choose to gamble it for double or nothing to $20,000 and then double it again for $40,000, etc. Sure, you could double it 10 times over, but the chances of you even doubling it the first time are very slim. You can pretty much assume you will not be able to double it ten times over. In you invested invested it into stocks and earned an average of 8% a year for 30 years, you would have over $100,000. Lose it all or multiply it by ten? - 23208
Some people play with investing like a game. When you invest your money, you believe that the company you invest in will be successful and the investment will increase in value. Some people who look at investing as a game want to make money, but they also enjoy themselves. Others just do it to make money. Why don't the others look at it as a game?
Investing is not a gamble. Some types of investments are so obviously not like gambling. For example, you may decide to put some money into government bonds. You are guaranteed the money back plus interest. It can't be a gamble if you know you're going to get money back. There is the smallest chance you won't get your money back, but that would have to be because the government is in a lot of trouble, and I think you'd have more to worry about than getting your money back.
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.
If you bet money at a horse race or put money down at a poker game, you own absolutely nothing. Whether or not you make money doesn't depend on the success of a business. It is completely by chance if yo make money.
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.
For example, we'll say you inherit $10,000 for an Aunt. You could either choose to gamble it for double or nothing to $20,000 and then double it again for $40,000, etc. Sure, you could double it 10 times over, but the chances of you even doubling it the first time are very slim. You can pretty much assume you will not be able to double it ten times over. In you invested invested it into stocks and earned an average of 8% a year for 30 years, you would have over $100,000. Lose it all or multiply it by ten? - 23208
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How does the stock market work? Don't let the stock market keep you confused. Learn how to buy stocks to start safely investing your money today.
posted by X - Men @ 4:17 AM
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