I just got back from Vegas! It was Super Bowl Weekend in America, the second busiest time of the year. (New Years Tops it!) It sure wasn’t very evident that the US was in any kind of recession the way the casinos were packed!
Every fancy store you could think of is there! It was fun to see what kind of things people spend their money on. We saw a Cell phone that was $150,000. Can you only imagine? We stayed at the 5 star Wynn on the 58th floor looking over the strip! It was really amazing!
As I watched the poker chips fall on the table and slot machine lights flashing, I could not help but notice how many men were gambling. I suppose their wives were shopping, getting value for their money and having something other than a hangover to show for the next day! 
It made me think of how we look at investments and risk. Do we chance it like a slot machine that requires no strategies, are we playing the odds at Black Jack, do we have a strategy like poker? Maybe you leave it up to your partner and just go shopping and hope for the best? Or are we conservative and hold onto our money and walk on by the casinos, taking in a show instead?
What it all boils down to, is not paying attention to your financial situation is really like gambling in the end. Not having an active role in your investments is like giving it to the house, you might end up with a bit extra in your pocket at the end of the day, but most likely you won’t be a winner!
Here are 5 simple tips to make sure you don’t gamble away your money!
1.) Begin to understand more about finance. Being here is an excellent start! Add to that by checking out the books we recommend and do a bit of reading too!
2.) Start saving and become an investor if you haven’t already! You absolutely need to think about your future, time flies and at some point you will be unwilling, or unable to continue to work. If you haven’t got any plan, you will be dependant. No one wants to be a burden so start small if you have to, but the main message is start, period!
3.) Take an active role in your investments. Don’t hand that job over to someone else to do it for you. Be clear on what you are investing in, how long it is for, what kind of projected returns they are offering, who the managment team of the organization is! Do some due dilligence and take control of your money!
4.) Diversify with more than one investment and more than one company! NEVER put all your eggs into one basket. Trust me!
5.) Never invest more than you can afford to loose in any one investment, no matter what! That is like going to a casino with no budget, and making one big bet with your credit card. You don’t really ever know if you are going to win or not, and no matter what anyone says, there is RISK in everything! Even T-bills and Savings accounts have risk attached to them. Oh course there is managed risk, but it is still risk! Don’t let this idea scare you and stop you from investing, but diversify and due diligence are your friends when it comes to risk management!
Take your time and you will be the winner not the house!
