James announced that he had won 250,000 shillings from betting the previous day, people around him were quick to congratulate him and those who have never bet before started creating accounts so that they too could win large sums of money.
However, Faith a friend of his, asked James just how much money he had lost before he managed to win. James couldn’t give an exact figure but he admitted that it was more than 250K.
Faith then told him that had he saved all that money he would now have more than a quarter million shillings.
Over the last few years, betting has become a popular affair in country, especially for many young people. This stems from the desire young people have to become rich without actually having to work hard for it. Everyone wants the easy way out.
Sadly though, most people don’t get to win and instead lose thousands of shillings that could have gone into starting a business, paying school fees, investing in stocks, or even paying bills.
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Here are a few things you need to remember about betting when it comes to your finances.
1. Betting should not be your financial plan
A financial plan is supposed to be what you are doing in order to achieve financial freedom. However, it has to be practical and actually guarantees that you will improve your financial situation if you follow it.
Betting should not be part of your financial plan because it is unpredictable and you are not sure if you will ever win any money. Not to mention the fact that there is a very big chance that you will lose more money than you’ll ever make.
2. Don’t bet all your money
Most people make the mistake of betting with all the money they have in hopes that they will be able to earn more. This is a very bad idea. If you end up losing all the money you have made, then you will struggle to pay your bills.
If you really want to bet, ensure you are doing with the extra cash you have after you have paid your bills and saved for your future. This way, even if you do lose the money, you won’t have to struggle financially until your next payday.
Before you spend your hard earned cash on placing bets, ensure you have put some money aside for a rainy day or to invest.
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3. Don’t plan for the money you don’t have
Something you need to keep in mind is that in betting you are not assured of winning, so you should never live your life expecting a win.
What I mean is, you shouldn’t buy something you cannot afford just because you think you could win some money and replace the money you spent.
This is the equivalent of counting your chickens before they hatch.
4. Don’t consider it a way to make money
Betting should not become your side hustle, yes some people have managed to earn a lot of money but there is an equally large number of people who have lost a lot of money. If you treat it as a source of income you might end up disappointed.
5. If you do win- save or invest the money
I’m sure we have all heard the stories of people who have won millions of shillings only to waste it all and end up where they started again.
If you are lucky enough to actually win a substantial amount of money, you should save it or invest.
James spent his money on a new smartphone that cost around 80,000 shillings and the rest he took his friends out.
After three days, he was back to the same financial situation he was in before winning. Had he invested the money or started a business to earn extra income, after a while, his financial situation would have greatly improved.
Don’t waste the money you win, instead, use it to build your wealth.
Whether you choose to gamble or not is a decision only you can make. However, ensure you do not ruin your chances of becoming wealthy just because you made poor financial decisions.
You need to be smart with your money if you want to become rich. You shouldn’t leave your financial future to chance.