Better on a budget: How to gamble without risking your financial future

(InvestigateTV) — A recent NerdWallet survey on sports betting found that in 2024, people said they spent an average of $3,284 dollars on gambling.

Elizabeth Ayoola, a personal finance writer at NerdWallet, said the survey also found 65% of participants reported doing this to make extra money.

A lot of people indicated they love to gamble. Ayoola cautioned that if gambling is a frequent activity, it should be factored into a budget to prevent financial strain.

“At NerdWallet we suggest the 50, 30, 20 budget, which is that 50% of your income goes to needs, 30% to wants and then 20% to debt and savings,” Ayoola said. “So, ideally, the gambling money should come out of that 30% bucket which is your wants in spending.”

Before deciding to gamble, Ayoola said there are three financial factors gamblers should consider:

Know your financial snapshot – Understand your income, expenses, assets, and debt to assess your true financial health.

Set a strict budget – Establish a firm spending limit to avoid overspending.

financial goals – Don’t let short-term gambling losses derail important financial priorities.

“While when you win you may earn extra money, people should that there are other ways to bring in extra income,” she explained. “So, one of those is considering a side hustle. At NerdWallet we have tons of ideas for inspiration in case you’re looking for one. People can also consider investing in the stock market.”

Ayoola said instead of gambling that money, consider putting some of it in the stock market over time, where higher returns are likely.

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