Lottery Players - What if you invested instead?
Millions of people play the lottery daily trying to be that one in a million or more that strikes it rich and hits those winning millions. Do you play the lottery? How much do you budget for playing the lottery? Do you even have a budget for playing the lottery? Do you find yourself using finances that could go to food/clothing/starting a business for playing the lottery?
Statistics show that a minute percentage of the population that plays the lottery actually ever win, so what's the attraction? Do you like trying to beat the odds? Do you really believe you have a chance at winning millions of dollars?
Here's a little exercise that you can do that will show you how you could invest the money you spend on playing the lottery and how much you could earn without taking a gamble on your money. This money will actually still be yours at the end of one year, five years, ten years and on unlike giving it to the lottery in your state. Yes, the lottery benefits senior citizens and schools but, do we really ever know how the lottery spends or distributes those funds? Here's a better way to help those in need if you choose.
Read on if you'd like to see how much your regular daily lottery gambling money could return for you in 5 and 10 years. You might be pleasantly surprised! The lottery won't do that for the bulk of people that play the game of chance.
Take a gamble on investing
Let's say that you spend only $5.00 a day for 4 days playing the lottery - that's probably a pretty low amount compared to what the average American wagers on the lottery daily. Many people also play the lottery every day but, for the sake of a realistic outcome, we'll just stick with using the $5.00 a day figure for only 4 days or $20 per week or $80 per month.
Instead of playing the lottery with that $20 per week, let's look at how you could start a savings plan.
Turn Lottery Costs into an Investment
1. Go to your local bank and find out what is required to open a savings account. Most times, you can easily open a savings account with as little as $5.00.
2. Plan on adding $20 a week to your savings account - don't miss a payment, you would find the funds to play the lottery, find them to fund your savings account.
3. The current interest rate at a local credit union is 1.72%, check your area to find your local interest rate, compounded monthly using an online interest calculator looks like this:
With an Initial Amount of $ 80.00:
Final Savings Balance: $ 1048.99
4. Plan on keeping your savings account for at least one year to see a good return on your money.
5. You could keep doing this the following year and gain an additonal savings account of $1048.99 for a total of $2097.98
6. What if you took that $2097.98 and opened a mutual fund at 10% interest? That $2097.98 would become $22,066.92. You could continue to increase the monthly amount instead of adding only $80 as we have done in this example to really skyrocket your savings. The potential to attain almost $175,000 is possible within twenty years!
You can see that you could take the money you spend daily, weekly and monthly on the lottery and instead start a simple savings account to yield you a much better return than gambling your hard earned money. After a year or two, transfer your regular savings account into a different and higher yielding account to earn even more money for yourself.
Note: You may be able to earn a higher interest rate depending on your bank or savings and loan as well as with a higher initial deposit. Use this as an example only and determine how much you could save in one year or longer.
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Good luck with creating an investment plan for yourself!