Are You Gambling or Investing ?

Gambling is:

  • Small money OUT with the Hope of BIG money coming in.
  • There is high risk for expected high returns.
  • NO Regular Income. I.E. money doesn’t come in on a regular basis to cover the out going expenses.
  • Gambling is based on hope and trust that the promise of good things to come will happen.
  • Like buying a lotto ticket each week. It gives us a dream that for most people never becomes a reality. But we hold onto the dream

 Investing is:

  • Small money OUT with the Hope of BIG money coming in.
  • How ever with regular income (Cash flow in)All expenses are covered, leaving a positive cash flow.
  • Risk therefore is nil.

 

The Key to investing is Regular Income?

 

Colin Burr

LearnAccountingFast

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