The recent $93 million lottery draw got me thinking if buying lottery tickets is the best way to a better lifestyle.
Do you buy a lottery ticket every week - or more often - in the hopes of winning the big one? Do you constantly dream about what you will do when you finally win the lottery? Take a trip, buy a new car or house, and help out the kids? Why leave your finances in the hand of Lady Luck who is known to be so fickle?
While we know that someone has to win, the chances of winning a significant amount of cash in a lottery is really poor. In fact, experts tell us we have less than three one-hundredths of one percent chance of winning a lottery.
Instead, tot up the amount of money you spend each week on lottery tickets; it might surprise you just how much it is. Especially if you multiply that weekly amount by 52 to see how much you spend in a year. Now multiply your yearly amount by 5 to see how much you'll have spent in five years.
Add about 8% to that total to see how much you would have got if you'd saved that amount in a term deposit instead of spending it. Of course it won't be quite accurate, because you would have to start off with just your first little weekly total, but savings mount up over time. And you don't have to depend on Lady Luck for your increase.
Why Winning the Lottery is Not a Safe Financial Plan
July 7th, 2009 at 04:15 pm
July 7th, 2009 at 07:35 pm 1246995311
July 7th, 2009 at 10:36 pm 1247006218
I've never bought a lottery ticket. Too bad that doesn't make me brilliant.
Near me there is a house being raffled for an academic charity. I briefly fantasized winning it and moving my FIL in there! Are you surprised I did not buy a ticket?