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Lottery vs. Savings

I know someone who has played the lottery for as long as I’ve known her. All tolled I’ve known this person for over 20 years.

When I first met her, I didn’t notice how much she invested in the lottery. It wasn’t until about two or three years after knowing this person did I realize she was spending upwards of $30 a week (at least what I’ve witnessed) on the lottery.

Winning Big

I recently asked her if she had ever won anything. Her response, “No, not really. I won a couple of hundred dollars once or twice but that was it.” That statement was followed by her favorite phrase, “But you never know.”

She often talked about what she would do with the money when she hits big.

The Reality

Okay, I’ve known this person for over 20 years and she spent an average of $30 a week. You do the math. You think she would be richer if she had taken that $30 and put it in an interest earning account? Maybe she could have invested it in the stock market. Instead, she gave over $30,000 to the folks at the lottery in hopes of a big hit.

Try this Strategy

Open a savings account at your local bank or credit union. Decide how much money you can save each day and place that daily amount in the bank every 10 days.

For example, if your budget is tight and you can only save fifty cents a day, every 10th day put $5 in your savings account. Vow never to touch that money. Once you get accustomed to saving fifty cents a day, increase it to fifty-five cents. Don’t stress your budget, save what you can, but save consistently.

I started out saving fifty cents a day. I’ve since increased that amount to $3.33 a day (a little less than the price of an expensive cup of coffee). On the 10th, 20th and 30th of each month I place $33.33 into my savings account. I use the electronic banking feature at my bank to schedule the transfer from my checking to my savings account every 10 days. I like watching the savings account grow.

Rather than giving my money to the folks at the lottery, I’d rather create my own nest egg of wealth. My daily savings amount will increase in accordance with the loosening of my monthly budget. As more money becomes available, the larger the deposits to my savings will be.

The odds of winning big at the lottery are a million to one. The odds of accumulating a nice nest egg by saving one day at a time are in my favor. Give it a try. You have nothing to lose and much to gain.

That’s my 2 cents and I’m sticking with it!

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