I am sure you have many ideas right now about what to do with your money, probably more ideas than money. Some of your ideas may be brilliant, others necessary, but just in case you have these in mind, stop right there:
Trading with no experience
There are plenty of markets you can get into these days, from stocks, futures to the Forex market and social trading platforms. All these have made people very rich, and still do, the only caveat is knowledge and experience. Just like, you would not dive into a lake if you didn’t know how to swim, make sure you know exactly what you’re doing.
Certain aspects of Forex trading, in particular, require extensive knowledge such as leverage, lot sizes and the economic calendar. Compared to stock trading where you only need to know how much a single share costs, the Forex market is more complicated. Which is all the more reason to stay away from it unless you know all you need to know about it.
Fortunately, there are many online resources that teach how you can trade in all these markets, and through them you can learn the basics. After that, go a step further and try demo trading with virtual money before you risk any real money. Even then, you may lose some of your money, but you will be better off than if you did it blindly.
Whether it is in sports or in a casino, gambling is never the best idea when it comes to handling money. Gambling relies entirely on chance, and the companies that provide gambling platforms further reduce your chances of winning. Even if you can select a legitimate online casino by via reviews, it is still one big gamble. This is how they make money and leave so many people broke, not to mention the long-lasting effects of gambling addiction and what not.
These gambling providers have even gone further to create online gambling platforms, which only make gambling easier to access. Even playing the lottery is just as misguided. Be very wary of these gambling avenues, and don’t be fooled by the few names you heard who won big. For every big winner, there are thousands of losers behind them who were hoping they would be lucky. Don’t be one of the losers, and inasmuch as I’d like to give you hope, your chances of winning are very slim.
Travel, vacation or treat
That sandy beach you wish you had your toes stuck in, or the 5-star hotel you always wish to spend a night in, or even that very expensive car you saw drive past you. All these are great, but not the best use of money either. Warren Buffett talks about delayed gratification, in which case it would be wiser to save your money today and buy as many cars as you want later in life than to buy it today and have a hard time maintaining it.
You will notice that in all these things I’ve advised you not to do, they all have a chance of success and huge returns. It’s just that the odds are stacked against you. But if you still want to try one or two of them, just remember one thing, never risk money you can’t afford to lose. That means no touching the rent, shopping money and other essentials. With the rest, you can dip your toe in all the above activities as long as you take the necessary precautions.