Don’t Treat Your Finance Like a Casino
So many people treat their finance like a casino and gamble on way too many things that often end up like a casino bet, going to the house! Not only is proper financial planning required, but also the necessity to reduce any and all risk whenever possible. Gambling with your own money, or at least on a large scale is not advisable for long term financial security.
If you like to play around with the stock market, then always remember that this is financial gambling as well, so only do this with money you can spare, and not money that you could put away for a safer investment. Yes, of course the stocks can pay off, and pay off big when you get it right, but they can also drain your funds and savings very quickly if you get it wrong.
Also, if you want to play around in the stock market, you have to know what you are doing. You can’t just go in there with your eyes partially closed and expect to come out a winner. It does not work like that, but still people go in with this blind approach, and they quickly get gobbled up by the markets and spat out again with an empty wallet.
You need to set the majority of your wealth up in a secure way that will make you money over time without being exposed to the clear and present perils of the high-risk stock markets present. A lot of time people learn from experience and by getting burned. This is okay, as long as you do not get burned too badly the first time around. It is always good for people to see the risk of playing the markets, so losing out the first time can actually be a good thing for your long term outlook.