This saying goes a long way when it comes to investing, and in actual fact, this is a phrase you should live by. If you are looking to make an investment and you are not worried about the outcome of the situation as you have other sources of income, and you’re willing to take a gamble, then so be it. However, if you are taking a gamble on money you really can’t afford to lose, you could be about to step into a nightmare. Smart investors will always invest money they can afford to lose, because any investment will have some risks involved, and you can’t leave it up to chance, because you could find yourself in a horrible situation, possibly losing a lot of money you’ve worked incredibly hard for.
Investing in money you can afford to lose is really rule number one of investing, so never forget this!