Playing the Lottery and Investing
Do not click off immediately, you will want to read through!
If you are a lottery player, I want to help you.
If you put $50 per month in the lottery over 10 years, you will have spent $6,000.
According to Tara Siegel Bernard in a recent NY Times article, “Win a Lottery? Not Much Chance Of That your chances of hitting the jackpot are 1 in 175 million. That’s about the same chance as getting hit by lightning according to Bernard.
You are not going to win the jackpot! It is so unlikely that it’s not worth considering.
You may win once in awhile, but it’s unlikely you will come out ahead with your $50 per month lottery payment!
Do not click off yet please. I have an alternative for you. Please stick with me here, this will offer you a better likelihood of making money from that $50 per month lottery payment.
Where are the Lottery Players?
Lottery players are everywhere. Each one hopes that their ticket holds the million dollar prize.
Last week, while visiting my local drug store, the guys in front of me were so excited. I watched to find out why. They bought a bunch of lottery tickets, and before leaving the store they pulled out their coins to scratch off the winning numbers. These guys brimmed with optimism. It was as if they knew they were going to win. (Find out at the end if they won.)
Every time I head into the supermarket, there is a line at the lottery counter.
Several years ago, my neighbors spent $75.00 per week on the lottery. They bought a gadget that even picked the numbers for them. And they actually won regularly (Just not more than they lost).
What do all of these lottery players have in common? The players believe they have a reasonable chance of hitting it big.
What’s My Chance of Winning the Lottery?
According to a Business Insider article, on average a lottery player wins back $.47 for each dollar played.
Do you want to keep playing a game where you pay $1.00 and win $.47? It doesn’t sound fair does it?
How likely is it that you will ever win the lottery?
If you still don’t believe me, look at your own situation. Keep track of all the money you spend on the lottery and all the money you win. What does your own experience tell you? Overall, have you made more than you lost?
So, if you’re tempted to play the lottery, consider the odds. Are you going to be the one in a million person who hits it big? It’s more likely that you’ll get hit by lightning or be in a car crash than win the lottery.
Why are the Poor More Likely to Play the Lottery Than the Rich?
The rich didn’t get that way by playing a losing game.
The statistics are so clear, that the poor play the lottery more often than the wealthy. And the poor can less afford to play the lottery than those with more money.
How to Win the Lottery
Try this strategy instead of playing the lottery.
1. Get a big jar and drop in the money you spend on the lottery.
2. At the end of the month, put the money in a bank savings account. Do not touch this money for any reason. After all, you didn’t use it before, you spent it on the lottery, didn’t win, and it was gone.
3. Every month, keep putting that lottery money in, no excuses. Do not stop.
I’m going to guess that you spent about $20.00 per week on the lottery. At the end of the year, you’ll have $1,040. At the end of two years, your lottery money will be worth $2,080. And just assume that interest rates go up a bit in year 3 and you start earning 2.5% on your money, at the end of year three, you’ll have $3,103.
You win $3,000 by not playing the lottery. Not a bad guaranteed jackpot! And if you keep it up for 10 years, your winnings from not playing the lottery will grow to $11,031.
“I agree. I have been saving the $6.00 per week that I used to spend for lottery for the past 6 years. I am a winner every week!” J.W.
Answer; The guys at the drug store, lost. Losing the lottery demolished their hopes and stole their cash.
Can’t Get Enough Money and Lottery?
- Thousandaire writes; Michigan Gives Food Stamps to Lottery Winners
- Deliver Away Debt writes; Get Rich Without the Lottery
- Street Smart Finance writes; Essential Finance Knowledge for Lottery Winners
Have you ever played the lottery? What was the outcome?
A version of the article was previously published, some comments remain intact.