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The lottery is an idiot tax and don’t let anyone convince you otherwise. Sure, you’ve done the math in your head and you’ve even won a few times, but don’t let that fool you. It’s a numbers game the gaming commission is bound to win - after all, they’ve got some very bright statisticians and actuaries working there that have calculated the odds in the commission’s favor.
Some folks justify purchasing a lottery ticket by saying it helps the local government provide essential services. Yet, there’s something inherently wrong and unethical with collecting money by way of a lottery knowing that only a fraction will get the money back so that they can reallocate the funds elsewhere.
Others justify the practice by saying “It’s play money” or “It’s just for fun”. But the truth is that most people will get hooked to the rush and excitement a lottery ticket provides. And it won’t be long before your twice a week grocery run includes dishing out a “few bucks” towards the lottery.
Instead, consider saving or investing the money. A lot of people balk at this saying the money they use to buy a lottery ticket is hardly enough to save anything meaningful. But I disagree. Where a lottery ticket almost guarantees you will lose 100% of the money invested, saving or investing the money in a reliable investment vehicle at least guarantees that your principal will remain safe.
As a quick example, even $5 a week towards lottery ticket purchases works out to $20 a month, or $240 a year. Yes, not exactly a goldmine, but continue doing this for a few years and you’ll be sitting on a tidy, little nest egg. At a minimum, enough to pay for the little expenses that you never accounted for, such as the 6 month car servicing or afterschool Karate lessons for Jimmy.
You’ll be amazed at how quickly saving even a little adds up. And as a bonus, you won’t get that sinking feeling each Saturday when you realize your chosen numbers don’t match the numbers drawn. Happy saving!
