Two dollars might seem like spending pocket change to get your hands on a lottery ticket. If you think about it, it’s a small price to pay for your chance at wealth and luxury--- but is it worth it? Investing Personal Finance is here to give you the best alternatives to spending your hard-earned cash on lottery tickets. Why leave your wealth up to chance?
Sorry to break it to you but you're not going to win the lottery. Sure, there's a slim chance, but to say the odds are against you is an understatement. There’s a reason lottery tickets are called a “tax on the stupid.” Your chances at winning in either The Powerball or Mega Millions are about 1 in 176,000,000. To put that in perspective, you are more likely to give birth to identical quadruplets (1 in 15 million) or get killed by a vending machine (1 in 112 million) than winning the lottery.
What you spend
Let's say you spend $10 every week on lottery tickets. Not so bad, right? Well, that's $520 a year, and $5,200 every 10 years. That's a lot of lattes. Raise the amount to $25 a week and now you're spending $13,000 over 10 years. A simple scratch lottery ticket might only set you back $1 per game, and perhaps you win $2, $5 or $20 occasionally, but don’t let the rush of “free cash” fool you, your chances of breaking even over years of scratching are incredibly slim.
What you could save
If you were to take that $10 every week and put it in a high-yield savings account with Synchrony which offers you up to a 1.75% interest rate with no minimum Annual Percentage Yield (APY), after 10 years, you've earned an additional $1,000 without moving a muscle (or scratching a ticket). In 10 years, a weekly $25 deposit will have earned enough interest to finally take that vacation to Europe you've been dreaming of ($2,500).
With a high-yield savings account, you can watch you money grow before your very eyes. If you continue putting your hard-earned cash into lottery tickets, you might as well set your cash on fire, at least that way it's keeping you warm.
If the odds are in your favor
In the unlikely event you ignore our advice, continue to play the lottery and actually win big (congratulations!) the right savings accounts and investments will make all the difference in safeguarding and enhancing your wealth.
No matter what your financial situation is, a high-yield savings account can provide you with the security, flexibility and interest to make your money work for you.
If you manage your money in a smart way, it can feel as if you’ve won the lottery.