Want to Take Risks? Start a Risky Investment Fund

I just recently started a "Risky Investment" fund of my own so I can invest in those investments that I was always scared to before. A Risky Investment fund is exactly what it sounds like. You put aside some money just for risky/new investments (i.e. Real estate, penny stocks, Prosper.com, etc.). Pretend the money doesn't exist. That way, if you blow your money on your risky investment, it doesn't hurt so much.

For example, I have always wanted to mess around with trading penny stocks. They are very risky but if you are lucky, you might be able to make some decent money off of them as well. Anyway, I will be the first to tell you that I don't know jack shit about penny stocks but I want to mess around with them and see what I can do. So here is what I decided to do. I automatically take a small amount out of each paycheck ($10) and put it into a high yield savings account each week. After a couple of months, I plan on taking that cash and seeing what I can do by investing in penny stocks. If I end up making money on the penny stock, then all is well. If I lose money, then no big deal. I planned on losing that money anyway. It might as well be money I set aside to go to the casino with. Just make sure you know how much you are willing to lose up front before you invest.

***I do not advise putting a very large portion of your money into a "Risky Investment" fund. This should account for only a very small portion of your portfolio.