I actually wrote this while one of my friends was in a $65 poker tournament, oh the irony.

Every American has gambled. Whether its a small bet on the Lakers-Suns game or a side bet on whether or not you can chug a beer in 10 seconds, gambling is one of America’s favorite pastimes. There is a specific gene in each and everyone one of us that says we have the urge to gamble and take risks even if there is virtually no payoff such as slot machines. The odds are always against us, and we all know its fiscally irresponsible to have any involvement with gambling.

However, we all love the fact that if we can drop a coin in a machine and possibly win a few thousand doing little to no work, we will do it. Even though its a fun and thrilling part of life, each and every one of us need to understand we need to impose certain limits on how much we wager. As a rule of thumb, each year I only bet about 1-2% of my annual income into gambling whether it be poker or sports or trips to vegas to do both of them, I spend about 1-2% on gambling.

Anything over 2% is outrageous and even though gambling is a rough addiction, we must understand that money management and wealth is our ultimate goal and no one ever made millions by doing things the easy way.

I do understand that anything other than a FDIC insured savings or C.D., its considered gambling. However, don’t include stocks and commodities as included in that 2%, they are a LOT less risky than Lucky 7 slot machines or going up against Phil Ivey at a final table.

You have to understand, with sports betting, slot machines, and many casino games(not including poker), the house has the advantage. It’s completely silly to take a huge proportion of your yearly earnings and throw them away on something you have very little control over. On the other hand, why not take a lot of the risk out of this slippery equation and do some research on some public companies. Test their products, stay at their hotels, drink their beverage, do something that you have a hand in, not just a pull of the slot machine level.

In most forms of gambling there is little you can do personally to influence an outcome, but with your own due diligence, your non-gambling investment can prove to be much more conservative and deliver such a greater reward.

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Filed under: Alternative Income, Saving