Gambling with Your Financial Future and Losing
Lottery and our Financial Future
We saw an interesting poll from Bankrate.com that asked how people envision themselves getting financially ahead, particularly in a difficult economy.
Not surprisingly, “Saving and Investing” was the number one answer, at 36%, followed by “Additional Education or Job Training” at 23%. Running your own business (which is actually the most common profession of millionaires in this country) was fifth at just 6%.
The most stunning figure was the 9% of respondents that identified “winning the lottery” as their best chance at financial success. We’ve heard the lottery and other games of chance called a “tax for people who are bad at math,” and there’s a good reason.
The reality is that the lottery should NEVER be played in hopes of winning. That may sound odd, but chances of winning are overwhelmingly against lottery players. For EVERY SINGLE winner trumpeted loudly in the local and national media, there are tens of thousands, if not millions, of people just like you who spent money on a ticket (or dozens of tickets) and were stuck with NOTHING.
To put into perspective your chances of winning the multi-state POWERBALL lottery, even if you purchased FOUR TICKETS EVERY week for FIFTEEN YEARS, you are MORE LIKELY to…
1. Win “Deal or No Deal” nearly 2,500 times IN A ROW;
2. Be injured by lightning 9 times during your lifetime;
3. Be killed by lighting;
4. Find a four-leaf clover on your first try 6 times IN A ROW;
In difficult economic times, despair can lead us to irrational thinking. If you think purchasing $20 worth of lottery tickets each week is a good investment, take a moment to consider the following odds: If you invest that same $20 every week ($87/month) into the stock market and continue doing for 20 years (even through rough economic times), you can REASONABLY EXPECT to have $55,000 or more to your name. That includes $35,000 in interest alone!
When it comes to betting, that’s as close to a sure thing as you can find!
If you have any questions, would like to discuss your financial challenges, or are just looking for advice, please call us at your convenience. As always, we are here to help and look forward to hearing from you.
1-877-OUT-DEBT (688-3328)
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Debt Reduction Services and the National Financial Education Center
Financial Educator, Facilitator, Lecturer, Speaker
A Certified Personal Financial Counselor, Todd Christensen, M.A. is Director of Education for the non-profit National Financial Education Center at Debt Reduction Services Inc, served as President of the Idaho Financial Literacy Coalition from 2006 until 2009, and was asked in 2009 to serve on the Council for Certification of the American Association of Family and Consumer Sciences.