Many people may have closely associated investing with gambling. In the sense that they both requires quite substantial risks, gambling may seem similar to investing. And yet they also have their own distinct characteristics that will help you tell them apart. Here are some of them.

Investing is business while gambling is entertainment

People have different aims when either investing or gambling. When people invest, the primary objective is to earn from the capital invested in certain financial instruments or investment options. When people gamble, they usually do it as a form of entertainment or to while away the time.

Investing is saving for specific goals which gambling isn’t

When investing, people usually aim to earn a substantial amount in order to save up for some future need. For example, investing can be a means to save up for retirement.

In gambling, this is not usually the case. The main goal that people gamble is usually for the thrill of winning and not for some more meaningful goals for the future.

Too much gambling leads to addiction and a destructive path which investing doesn’t

The fact that gambling is a means of entertainment can make it very addictive. Too much of it can damage one’s life since gamblers are prone to lose more than win.

In the case of investing, it is rarely seen as addicting since there is no one known yet to have suffered from a case of uncontrollable investing.

Investing takes time to appreciate while gambling can provide immediate but fleeting gratification

This might be the reason why people prefer gambling over investing given the risk that both may entail, albeit on varying levels. More people are looking forward to instant results which gambling can, but does not necessarily provide.

Investing on the other hand relies mostly on time and patience before one can actually appreciate it.