Don't get too comfortable
In 2010, I was getting out of the Navy and stashed in an office with nothing to do for a while so I looked into "investing."
You know what stock I bought?
Blockbuster and Palm Pilot.
I made money, then lost more money, to the tune of a few thousand bucks.
I'm glad I lost that relatively small amount of money at a young age, because it turned me off from stock picking.
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I read an article that described a dramatic increase in the number of men "gambling," primarily in sports betting, crypto, and day trading.
"While plenty of people across demographics are participating in these trends, data suggests the crowds skew younger and male. A 2023 survey from the NCAA found that sports gambling was prevalent among young adults, specifically on college campuses and among Black and Latino respondents. Pew Research found in 2022 that men and people under 50 were likelier to bet on sports than women and the over-50 crowd. Younger men tend to be more into crypto and meme-stock trading as well."
Men are more likely to take risks, and modern technology reduces the barrier to gambling. You can just whip out your phone and place a bet or buy a stock.
A few thoughts:
- Don't day trade. You'll probably lose money
- If you gamble, set a budget that you expect to lose.
- Take better risks
I suspect that one of the reasons young men are gambling more is because modern life is too comfortable. There is not enough risk.
I've felt this. When you're bored, you need to do something to give you a rush, like day trade Blockbuster stock.
What I recommend instead, if you're feeling that same urge to get a Robinhood account, is to start a business on the side.
Here's why:
- It gives you that feeling that there is potentially a big pay off
- You can take non-financial risks like spending your time outside of the day job to work on it
- You'll learn new skills
- You might actually make significant money
- The downside is usually limited, particularly if it's a service business
If you're a government contractor, going 1099 is a good risky business to start with because you can keep the day job, the results are somewhat uncertain, the payoff is significant ($20k - $80k salary bump).
So if your life is super comfortable, delete RobinHood from your phone and start a business.
Your bank account will thank you.
Want the full playbook? Check out Going 1099.