Are There Financially Literate Methods Of Gambling?

Most people would assume that gambling money is never the same as practicing good financial sense. In many instances, they would be right. Yet it’s also true that much of the world runs on financial risk, so accepting a little to make more isn’t exactly beyond the pale. For instance, a stock trader is essentially gambling his or her money, or perhaps the money of a fund they manage, on the performance of businesses. Some even short sell, which is effectively betting that a company (or an entire market) is going to drop in value.

Now, there are certainly better metrics than to research, habits to learn and good practice to follow here, making financial investments a little more reliable than betting on red or black at the roulette wheel. But this all begs a question – if you were to gamble (that is, safely, ethically, wisely and as an adult), are there financially literate methods of doing so?

Well, we believe there are, provided to stick to strong principles. Let’s consider that, below:

Always Vet The Betting Establishment

A betting establishment’s reputation does matter. They should be licensed, regulated casinos and betting shops that operate under strict guidelines that protect their customers. Many even make certain to take steps to prevent problem gambling. The same cannot be said for unlicensed operations or certain online platforms. A quick search of casino reviews, licensing information, and operational history provides a good insight, so make sure to use it. Reliable venues also tend to offer better odds and more transparent terms of service to keep you wanting to come back.

Always Set A Strict Limit You’re Willing To Lose

Money set aside for gambling should be viewed as entertainment spending, not as an investment. In other words, this isn’t part of your financial growth strategy. This means determining an amount that won’t impact your essential needs or financial goals if lost completely, and be willing to lose that completely so it’s not an emotional shock if you do. Some will find it helpful to separate this money physically, perhaps in a different wallet pocket or dedicated account. When it’s done, that’s it, you’ve spent for the evening, perhaps on the town with a friend or visiting a place like Vegas. This way, you can consider it a relatively expensive show you enjoyed, with the chance of winning big. And if you do, accept those wins, and walk away. 

Avoid Trying To Recoup Losses Without Thinking

The temptation to chase losses has ended many gambling sessions poorly, to the point where people have lost everything they have. Losses shouldn’t be viewed as money that needs to be won back – they’re simply the cost of the entertainment, like buying a movie ticket or dining out as we said above. Taking a break after losses helps you absorb the emotion of it and have some more fun elsewhere. Never try to fix losses, that’s how you go deeper into the hole.

Avoid Any Electronic Gambling Machines

If you want to lose money, play on electronic gambling machines. Sure, their constant chiming and bright lights can be fun to play on, but they’re mathematically designed to ensure you never have the chance of reliable profit or returns like more fair physical games can. Traditional table games or sports betting often provide better odds and a slower pace that allows for more pensive decision-making – not quite on the level of stock trading, but better than a slot machine for certain.

With this advice, we believe you’ll approach gambling more as entertainment, but still use the financial literacy skills you learned here to protect yourself.