Maybe we should start "Gambling Funds" to mitigate the risk of loss

[Davidvictorson]

So this is an interesting idea, im sure its been thought of before but im not sure if we have ever discussed this in here before and even if we have im sure its worth it to resurface. 

The idea is this: If you consistently gamble large amounts of your income perhaps you should consider this strategy to avoid huge losses. instead of using 10-30% of your income on gambling why not try to invest it in an index fund or mutual fund that sees 10-20% amnual returns and at the end of the year cash out on the returns to use towards your gambling activities.

This strategy has huge upsides:

1. You practice restraint of all gambling activities and earn your gambling though investing
2. You traded a bad habit of gambling and losing with investing and now see consistent returns if invested properly.
3. You will feel better if you do lose in your gambling activities because you wouldn't lose your initial earnings, just the gains for that year.
4. If you do win, youre not only winning from gambling but now youre also winning from investing 😉

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

Great idea but the thing is that it is not practical. And most gamblers would not buy the idea. Gambling promises on quick instant gratification and not the delay of it. Anything else outside of this that doesn't promote it will not be welcomed. Don't get me wrong, the instant gratification is where the fun is and if you gamble responsibly, you will even be happier. In the OP's description, this would entail learning some new skills even though it may not be hardcore but it still needs some skills. And you know what no one will want to do this so as to get to the other- the other here is gambling.

[tygeade]

Someone who spends 30% of their income into gambling is not a normal gambler but an addicted one, and you can't expect an addicted gambler to invest their money somewhere and wait for a whole year until they get profits from the investment and then use that profit to gamble; they would simply ignore such a thing and continue gambling with whatever money they get, or simply use about a half of their income for it as you said.

So, we should first make sure that we are discussing normal gamblers with no addiction and enough self-control to be able to stay away from gambling for that long.

And, I wonder how one wouldn't feel bad if they lose the profits that they've waited for a year, I would definitely feel bad if I lose that money because I had to wait for a whole year to get it, and I'm pretty sure someone with a short temper would spend more money than the initial bankroll if they lose the profits quickly after waiting so much. I wouldn't say it's a bad idea, but I feel it's not practically possible for gamblers to do that, especially if they are regular gamblers.

[yhiaali3]

It's a good idea, but it's still just an idea because it's difficult to implement in practice. Where would you find a gambler with the patience to wait that long without gambling until they see their investment returns? Even a responsible gambler wouldn't be able to wait that long without gambling because if not an addiction, it's a habit that's hard to break for an extended period.

Add to that the fact that this idea primarily requires capital for long-term investment, while in reality a large number of gamblers will gamble with any amount they have, no matter how small.

[Cgrexp]

No one may be interested in investing for a year and most people may not be able to continue such a strategy. Because most gamblers prefer to gamble without investing.
 It is a bit difficult for those who gamble regularly to accumulate such a percentage to gamble at the end of the year because they have to wait a year to deposit it and then play with the interest on that money which is time consuming.

[Fortify]

So this is an interesting idea, im sure its been thought of before but im not sure if we have ever discussed this in here before and even if we have im sure its worth it to resurface. 

The idea is this: If you consistently gamble large amounts of your income perhaps you should consider this strategy to avoid huge losses. instead of using 10-30% of your income on gambling why not try to invest it in an index fund or mutual fund that sees 10-20% amnual returns and at the end of the year cash out on the returns to use towards your gambling activities.

This strategy has huge upsides:

1. You practice restraint of all gambling activities and earn your gambling though investing
2. You traded a bad habit of gambling and losing with investing and now see consistent returns if invested properly.
3. You will feel better if you do lose in your gambling activities because you wouldn't lose your initial earnings, just the gains for that year.
4. If you do win, youre not only winning from gambling but now youre also winning from investing 😉

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

You fail to understand why people even gamble in the first place or the drivers that go into peoples financial planning. If someone is clever enough to know that index funds are a wise investment, they'll also know that it generally just returns around 8%~ per year if you're lucky. PER YEAR. That is a glacial pace when gamblers are looking for instant satisfaction of seeing their money go up today, tomorrow or on the weekend. The plan you have laid out is completely oblivious to actual reality and how gamblers think. If a gambler did that, then they would not even have the patience to leave it for a couple weeks before cashing out and sticking it into a casino. It's an admirable goal you set, but anyone already in control of their finances are doing this already.

[NurseHub]

To be honest, this is a good idea, which I appreciate. But then again, this can't really work for a regular gambler, someone who basically gambles every day. Or for someone who is already addicted to gambling, waiting this long will definitely feel like a death sentence to them.  It will surely be a difficult one, while it can also work for those who gamble occasionally or by the end of the month.
Somehow some people that like to gamble doing seasons will find it difficult to adapt too. Not even talking about how gambling companies might bring up bonuses because they are losing income too.

[Japinat]

Yes, it could mitigate the risk of loss, but it will also drive you into addiction, knowing you have readily available funds for gambling. No matter how responsible gambler you are, the greed to win and make money will always be there, so if its that easy for you to gamble because you have reserved some gambling funds, then losing will also be a lot easier, even if you will key saying that your losses don't affect you. The fact that you are losing from your hard-earned money, still that's something that would hunt your emotions.

[Johnlomape]

No one may be interested in investing for a year and most people may not be able to continue such a strategy. Because most gamblers prefer to gamble without investing.
 It is a bit difficult for those who gamble regularly to accumulate such a percentage to gamble at the end of the year because they have to wait a year to deposit it and then play with the interest on that money which is time consuming.

There is no how we can gamble and not make loses from betting. This is normal and it is surely going to happen to any of us that are playing bets. When you allow somr loses to come, you will make profits too and that is how the system is working. Those that understand the system of making money will know that you have to allow the website you are using to gamble to milk from you first before you can be looking for a way to milk from them too. You can be the first to milk them before they will recover and milk from you too. Losing bet will always bring you profit.

[Odogwu-Blockchain]

Well 10% to 30% is a really high amount out of someone’s income but however that same amount that will be invested merely for gambling purposes will also be the exact same percentage used to invest for one’s lifetime investment however my opinion is if we have an investment like the mutual funds or whatever type of investment that yields annual return we can take a very little amount like 1-5% of profit for gambling spread out within a year, so whatever you are gambling with is only within that amount then you can be more comfortable losing and when you win you will be better.

If a gambler would reject gambling and focus on a mutual fund to get 10-30% return on investment annually, is there any need to use the profits for gambling again, I don't think it's necessary to do so, diverting attention to gambling from the profits off the investment scheme is simply a financial mistake to ruin the financial situation of such gambler, because, gambling will literally fail with lots of losses.

It would be more proper either to stake with the high input or reduce the bankroll for smaller odds by accumulating more odds.

[Odusko]

This is a good idea, and I think it will work, but first, you will need to stop gambling for a year to save up that gambling funds.

To be honest here, I can't find myself trying to save for the aim to gamble. I dont gamble always and even if I do, I stay consistent to sports betting only.

Naa I can't see myself doing that either, gambling funds should be amount that we see as a no needed cash flow, this money shouldn't be for anything other than gambling, but if you make a special savings plans to accumulate such fund's then it will definitely overlap with your reality along the line, I do rather save up for More important situation and plans than gambling, no need for special planning on the first place.

[jossiel]

The idea is this: If you consistently gamble large amounts of your income perhaps you should consider this strategy to avoid huge losses. instead of using 10-30% of your income on gambling why not try to invest it in an index fund or mutual fund that sees 10-20% amnual returns and at the end of the year cash out on the returns to use towards your gambling activities.
~

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

That is why it's called investing and the other is called gambling.

It's a good idea that you've brought up but gamblers will be gamblers and even this is a proposed idea to them, if they want to gamble.

No one will ever stop them from spending 10%-30% of their salary to gamble. They'll only do that probably when they have woke up into realization that they should have done it earlier than when somebody has told them to do it.

[Raflesia]

No one may be interested in investing for a year and most people may not be able to continue such a strategy. Because most gamblers prefer to gamble without investing.
 It is a bit difficult for those who gamble regularly to accumulate such a percentage to gamble at the end of the year because they have to wait a year to deposit it and then play with the interest on that money which is time consuming.

There is no how we can gamble and not make loses from betting. This is normal and it is surely going to happen to any of us that are playing bets. When you allow somr loses to come, you will make profits too and that is how the system is working. Those that understand the system of making money will know that you have to allow the website you are using to gamble to milk from you first before you can be looking for a way to milk from them too. You can be the first to milk them before they will recover and milk from you too. Losing bet will always bring you profit.

It's impossible to avoid losses in gambling because, as you say, it can happen to anyone who gambles. Therefore, we must be aware that the money we use for gambling must be within our means and ensure that this gambling money is not used for other purposes. This way, we won't incur significant losses.

And while the op's advice is good, the problem is that people who gamble tend to think and prefer quick ways to make a profit, which is why gambling becomes a popular choice over investing. Indirectly, they already think that gambling is the right choice for making money instantly, whereas investing takes time.

[Fredomago]

The idea is this: If you consistently gamble large amounts of your income perhaps you should consider this strategy to avoid huge losses. instead of using 10-30% of your income on gambling why not try to invest it in an index fund or mutual fund that sees 10-20% amnual returns and at the end of the year cash out on the returns to use towards your gambling activities.
~

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

That is why it's called investing and the other is called gambling.

It's a good idea that you've brought up but gamblers will be gamblers and even this is a proposed idea to them, if they want to gamble.

No one will ever stop them from spending 10%-30% of their salary to gamble. They'll only do that probably when they have woke up into realization that they should have done it earlier than when somebody has told them to do it.

Indeed, most of the time regrets happened after losing a lot, though there are some gambler who can manage to stop even they only lose some but most of those gamblers who loves to play will never think about it, the proposal or the idea is good but in the eyes of a gambler they will push for playing than investing.

As they will choose to proceed and keep playing than placing their money to an investment and wait for the profits to use for their gambling activities.

[rbynxx]

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

I don't know but what I can observe to gamblers, experienced or not is that impulses will surely be upon them if they think they need to cover that loss. It's definitely a great thing to do but I don't think it will ever mitigate gamblers losses because even if that funds is solely for gambling and it's dried out, gamblers will surely find a way to gamble once again with another source of funds. Talking about experience of course, because I probably have used that kind of strat way before.

[iv4n]

10-20% amnual returns and at the end of the year...

10-20% a year sounds great, almost like too good to be true. Don't get me wrong... just this is rare, risky, and usually comes with some hidden catch. So when you are aiming so high, it's something like gambling...

By the way, "risk of loss is always present"... that's why you need to be a "responsible gambler" and play only with the amounts you can lose. The amount you can afford to lose is your "gambling fund"! If you can't afford to lose any money, then you don't have a gambling fund, and it's better not to gamble... focus on making money, and fun will come later.

[jcojci]

I don't think many gamblers can restrain themselves from gambling until they can earn through investing. That will need time before they see their profit and they can't always have the patience to wait especially those who often gamble.

That strategy may work if gamblers have discipline and stick to their plan. But if not, they will search for other money and continue gambling. If they can use that strategy and succeed, they will change their gambling habit and have more control when they gamble.

It needs more learns to master it while you need to practice your discipline.

[Mpamaegbu]

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

I don't think that will feel like gambling for hardcore gamblers. They're likely not going to take that option. If it doesn't feel like it, then it's not it. Again, you mentioned using 10–30% of one's income on gambling. That's huge. I think a sensible way to gamble will be to first secure money for one's expenses before mapping out what to be used for gambling from what's left of one's income. No one should take out funds for gambling from their whole income. It will end up making one commit more funds into gambling than they should.

[YOSHIE]

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

Yes, the strategy you said is not too bad, maybe there is some truth to it, but you need to know that there are some people who are seriously addicted, let alone house investments, they sell all their assets to gamble, yes, maybe that is a different understanding from the strategy you said.

But I gamble will certainly be responsible for my own finances, meaning:
As long as I gamble and until now it hasn't cut my monthly income 0% is used in gambling, of course I prefer to invest 30% then the question is where does your gambling money come from......!
It's simple, in our lives of course there are various kinds of economic income that can be generated, they are varied, basically I gamble using side money/tips, for example, in one week I get $100 in tips, I will use 40% to bet, meaning my investment will not be disturbed, if in one week there is no side money/tips, gambling is automatically off for me, and so on.

[lionheart78]

What do you guys think about this strategy to help avid gamblers mitigate their risk of loss?

This is a good idea, but the question is, would the gambler wait for a year to gamble? I think no.  You are just advising gamblers to stop gambling, which I think is somehow difficult for them.  If they have extra money, they can do what you suggested and still gamble with the rest of the money.  So, for them, why stop gambling for a year only to gamble the profit after the year?  Gamblers are not looking for a long-term profit but a short-term excitement with the possibility of taking a huge profit.

[Free Market Capitalist]

This is a good idea, but the question is, would the gambler wait for a year to gamble? I think no. 

That's not what the OP is proposing, but rather a reduction in the percentage of your income that you gamble in order to invest the difference in index funds. Here, the issue would be a hypothetical change in mindset. It seems unlikely to me because the gambler he describes seems to be much more emotional than rational. In other words, such a rational plan has little chance of being carried out.