Similarities between investing and gambling

When people have money in savings, they like their money to work for them. These people will often invest their money in different areas in the hopes of using it to make a profit. Some people often say gambling is a bit like investing. Both activities have their similarities along with notable differences.
Social Acceptance
One of the major differences between investing and gambling is how they are perceived by society. Investing is an accepted manner in which people can increase their money. Investing is important in today’s economy. Without it, capital would not be able to be raised for businesses. Investors may also choose to invest their money in companies they believe in which will help mankind. These could be businesses pertaining to environmental or social issues. On the other hand, gambling often has a more negative connotation associated with it. While gambling can also stimulate the economy, the benefits are felt more at a local level and in some situations can have negative side effects. While investing is a legal activity, gambling is not in certain locations.
Return on Investment
Both gamblers and investors hope to make a return on their money. Both don’t do this in the hope of making a small amount of money but rather dream big. Gambling generally sees a quicker return than investing. Gamblers can double or even triple their money in minutes by playing casino games or placing a bet on a sports. On the other hand, depending upon the level of risk involved with a particular investment, the return with investing is much slower and can take years or decades.
While both investment and gambling seek the same end, making more money, they both have some major differences. Depending upon the time you have, investing can make more sense in the long term while gambling is a short term endeavor where gains and losses can be realized much sooner.