|
|
Want to Beat The Lottery Odds? Build Real Wealth
The most effective way to build wealth and keep it is a lot like building an enduring cathedral out of brick...strategically placing one brick at a time. But too often we give in to our desire for instant gratification and substitute straw for brick and as a result, our wealth cannot endure.
You can get rich quick or stay rich, but rarely both.
A recent headline reads Mega Millions Jackpot hits $333 million - The 12-state lottery has hopeful would-be winners doling out dollars for a chance to take home what's shaping up to be the third-biggest U.S. lottery payout.
And lottery fever races through the neighborhoods of America once again. CNN news recently reported that we Americans spend more than $25.1 billion a year on lottery tickets.
If this was the swine flu racing through our neighborhoods, the Centers for Disease Control and Washington D.C. would be alerting all of us to take precautions and urge everyone to get the swine flu vaccine.
But this is not considered a public menace; rather it is treated by the media as an exciting novelty with the chance that someone will become instantly rich. As exciting as that thought is, we tend to overlook many of the facts surrounding the lottery that the media often reports as well.
Here are facts gleaned from studies and reports:
The odds of winning are microscopic. In this most recent lottery, you would have a one in 175,711,536 chance of winning. That's a 0.0000006% chance. According to the National Weather Service, your odds of being struck by lightning in a given year are only 1 in 700,000. In other words you are 251 times more likely to be struck by lightning than to win the big lottery!
In recent years, the average household in the U.S. spent $372 on state lottery tickets. Over 10 years this is an investment in hope of $3,720. Since we now enjoy an average life span of approximately 80 years in the United States, someone who continues the lottery habit for most of their adult life, over 40 years they would invest $148,800 in hope!
If that $148,800 were invested in a simple CD bearing 3% interest for those 40 years, it would return $485,391! And your odds of winning this investment lottery are just about 100%. If you invested that $148,800 in something that paid 8% interest for the same period, your return would be $3,649,161.
Since lottery tickets are just $1, and the jackpot payout is double the odds of winning, if a person bought all 176 million combinations, he or she would be guaranteed to win at least $157 million. So playing the Mega Millions could make sense if you could afford to spend $176 million on tickets. And remember that this only works if there is a single winner who doesn't take a lump sum payout.
And what happened to those few that did win the mega lotto? Studies show that nearly one third of multimillion dollar lottery winners become bankrupt in just a few short years after their big win. And there are estimates that 70% OF Lottery Winners will squander away their winnings in a few years.
True, investing in more tried and true investments may not be as exciting to you as investing in something like the lottery with the hope of instant reward. But even great grandma could have told you the old wisdom: a bird in the hand is worth two in the bush. In other words, if you are going to invest, invest where the odds are favorable, the returns are guaranteed and the growth of your investment is steady.
Even if you feel that the sure steady method of building your wealth is a little like watching grass grow; at least you can count on this growth.
When you think about the difference between investing in the lottery and investing in more solid investments it really speaks about your belief in yourself. Where you really believe in your ability to build wealth, you are less inclined to gamble your money.
And I would bet my money on you and your ability to be successful.
About the Author Jimm Hughey, M.S., Master Wealth Acceleration Coach
Former Corporate Regional Manager and Professional Graduate Coach for executives, entrepreneurs and couples. http://www.LoveandMoneyforCouples.com and http://www.LoveandMoneyBlog.com
|
 |
Please Rate: |
|
Rating: |
 Processing ... |
(Average: Not rated) |
| Views: | 52 | |
|
| More Articles from Wealth Building | | |
| Top Articles in Wealth Building | | |
|
