Spend, Save and Invest Smartly

How Gambling Makes a Mess of Ones Finances?

You must have heard the saying "What Happens In Vegas Stays In Vegas". Yes I am talking about the legendary city of Casinos and gambling .How we all love to see the American Roulette, Blackjack and Poker games at a Las Vegas casino. Originally designed as a stopover on the pioneer trails to the west it soon became famous for its Casino’s, shopping and fine dining .Haven’t you heard of Monte Carlo "A City Where The Rich Throw Money Like Confetti Thrown At A Wedding". A place where Aristocrats rub shoulders with professional gamblers. This city was made famous in the James Bond movie "Casino Royale". You must have seen the James Bond Movie"Skyfall" where we see the Casinos of Macau .This is also a place where Rich Indian’s feel at home. Haven’t we all heard the saying "Keep A Poker Face". Not surprisingly Poker is the favorite game of Indian’s who visit Macau’s Casino’s. These are rich Indian Stock Brokers and Hedge Fund managers who succumb to the"Gamblers Itch". We Indian’s are the second largest population next to the Chinese at the gambling tables of Macau. No longer are Indian’s satisfied with gambling in Goa but are frequenting Macau, Sri Lanka, Singapore, Las Vegas and even Monte Carlo. Closer home we have casinos in Goa floating on the Mandovi River where for not too high a sum we get unlimited food, drinks, entertainment and of course blackjack, poker, baccarat, Roulette and slot machines .Gambling has been a part of our culture from ages and draws mention in "Ramayana" and "Mahabharata" and Indian’s in many parts of our country indulge in gambling during the season of "Diwali". You must have read of the illegal betting that recently took place in the Indian Premier League.. It would be wise to remember the saying "Eat Your Betting Money But Don’t Bet Your Eating Money".

The Famous Lottery Of India

You must have seen lines of poor people standing in front of lottery ticket centers in India. These people invest their hard earned money with the belief that good luck will pluck them out of their filthy surroundings and bestow upon them a life of riches. The bulk of profits lotteries earn are from these poor people who see no way out of their poverty .The more you know about money management the less likely you are to fall into this debt trap. What is the thought process that occurs behind the purchase of that lottery ticket?. Let us say a poor daily wage worker in a canteen earns INR 4000 per month. Without fail he will purchase the lottery ticket of INR 200 on most days .Why Would He Do So? .In Kerala in the Onam season the Bumper lottery is valued at 20 Crores and a first prize of 5 Crores. Truly Staggering Figures. The poor daily wage laborer see’s this sum and perceives all the good things he can do with such a large sum of money. In the bargain he loses at least INR 3000 even if he buys 15 tickets a month. The least he could have done was buy a term insurance policy for his family where his dependents would get the necessary financial protection .Clearly a case of losing a bird in hand to catch two birds in the bush. In case you don’t know what to do with your earnings just walk into a bank and ask them to open a savings bank account. Banks always need funds in order to cater to loans. Fortunately this helps you as must as it helps them as you draw interest on your savings. Surely a better way to save your resources than gamble them away at a lottery. Always ask yourself "Is It Good To Throw Away Such Hard Earned Money In A Lottery? Is There Anything Better I Can Do With This Money? .Certainly Yes. You can use this to buy stocks and bonds. Pay off your debts. Take up a mediclaim or an insurance policy .In a nutshell think of lottery as a tax Don’t you hate to pay taxes. It is a source of government revenue. Most of us fall for the advertising gimmick "If You Don’t Buy That Ticket How Will You Get That Bumper Prize". Forget about all this talk .Let us use simple logic. You have purchased a ticket of INR 200 .You know you are not the only purchaser of a lottery ticket. There are lakhs of such tickets sold. What are your odds of winning that Bumper lottery? Pretty slim I reckon. The lottery would get Crores of rupees and even minus the prize payments imagine the Crores in taxes State and Government authorities would collect. You might not even get the whole sum of the prize money but only a certain percentage of it .Sometimes it would take years to get the Bumper prize money. Have you ever considered why a person of sound financial knowledge never buys that lottery ticket?. This is because they know that they have no need to buy that lottery ticket and believe in sound knowledge rather than luck. They Make Their Own Luck .Learning to invest and acquire sound financial knowledge is a skill which will always remain with you. Most of the winners of these lottery tickets have squandered their wealth as fast as they have gotten it. Surely There Is A Lesson Here For Us To Learn. I would like to remind all of you that the team of Financial Planners at Moneymindz.com are always there for you to plan your financial needs in a most effective and efficient manner. You can explore this unique Free Advisory Service just by giving a missed call on 022 6211 6588.

How Gambling Makes A Mess Of Our Finances Over Use Of That Credit Card

Haven’t you seen a gambler. He is only one step away from wining .He takes advances on his credit cards .He finances his gambling using his credit card. He believes that his gambling winnings will cover up his bills and family expenses. The net result is a huge credit card bill and an overflowing debt."Gambling Is The Son Of Avarice And The Father Of Despair".

Got To Fake It

A gambler has to hide his debts .He does a good job lying about it. A good gambler is very good at concealing his debts. A gambler running up debts is seen as a bane on society rather than say family medical bills running a huge debt. This actually compounds the problem as concealing debt helps no one."Nine Gamblers Could Not Feed A Single Rooster".

Illegal Loans And Mortgages

A gambler takes loans from friends and whom so ever will provide him a loan in order to service his gambling needs. Most of the time the family members are not even aware that the breadwinner of the family is in such debt. In some cases the house is also mortgaged or given as a collateral in order to guarantee such loans."The Safest Way To Double Your Money Is To Fold It And Put It In Your Pocket".

There Are No Savings

A gambler is not able to save money for his children’s education. Saving for his retirement and pension is best not spoken about .There is no insurance protection for his family ."Gambling Is A Way Of Buying Hope On Credit".

Online Gambling

This is basically a form of gambling which involves electronic fund payment. These payments revolve around our bank credit cards. Here you literally gamble away your credit score .But How Does It Affect You ?

  • A person with a bad credit score is not eligible to take any major loans such as automobile or housing loans, or loans for any major purchases.
  • A compulsive gambler opens many credit card accounts .This act itself lowers his credit score. He uses one of the cards to pay off the debt on other cards. This leads to a high interest rate payment on all his cards.
  • Many gamblers are in the 18-25 age group who know nothing about credit card ratings, credit score and so on. Even before they set up their careers they are in sizable debt .Isn’t this a prelude for financial ruin.

Swindling And Embezzlement

There was a popular case of a lady employee working in a bank in the USA who in order to service her gambling debts admitted to what she called loaning herself money from the bank’s funds. She embezzled funds to the tune of $240000.She took money from the bank without prior approval of bank authorities and she did not complete any loan applications or provide documentation for the loans generally required by banks to sanction loans. She combined several such unaccounted loans into a single loan account and stated that the loan was made to a person who had an account at that bank. She settled her gambling debts to several casinos from these funds .Her gambling habit literally made her serve prison time."A Gambler Never Makes The Same Mistake Twice". "It Is Usually Three Or More Times".

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