Imagine, If we grew up when inflation was high, we invested less of our money later in life compared to those who grew up when inflation was low. If we happened to grow up when the stock market was strong, which means we invested more of our money in stocks later in life compared to those who grow up when stocks were week
A study says, in the United States, the lowest income households on average spend $412 a year on lotto tickets (Lottery). The same survey says 40% of Americans cannot come up with $400 in an emergency. Americans spend more on Lottery tickets than movies, video games, music, sporting events and books combined
Instead of investing in Lottery tickets, if that amount was invested in quality stocks after analyzing the demand and product of the company, it will definitely bring fortunes. Let's workout this way, why don't we invest in the company which sells Lottery tickets, if that was listed in the exchange ?
Few points which i learned that needs to be kept in mind all the time during investing / trading:
- The Hardest financial skill is getting the goalpost to stop moving, Never be Greedy
- Social Comparison is the problem here
- "Enough" is not too Little
- There are many things never worth risking, no matter the potential gain
Have a Great Day
B G Nareshkumar
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