Is playing the lottery worth it?

This post may contain affiliate links.

Recently my husband told me about a couple guys who won the lottery after each putting in $20 a week for 25 years.  I’ve always said it was crazy to play the lottery.  Not that a person can’t buy a ticket every once in a while on a whim, but to regularly invest your money in lottery tickets is not worth it!  Knowing that I like mathematical figures and comparisons, he challenged me to calculate how much money each man would have if it had been invested all this time. Yes, dear I’d be happy to take you up on that challenge! :-)

Each man bought $20 worth of tickets each week and pooled them together.
$20 x 52 weeks = $1040 ($86.67 a month) x 25 years = $26,000 spent on lottery tickets!

If saved for one year before investing at 10%, then added to monthly for the remaining 24 years, that $26,000 would become $114,461 by the end of the 25th year.

Sure, it’s no where near the 3.3 or 3.5 million these guys took home after taxes, but considering how many people are putting that kind of money into lotteries regularly and never winning a substantial amount, it’s by far the safer bet!

Subscribe to RSS headline updates from:
Powered by FeedBurner

Comments

  1. I definitely agree with you. Buying tickets maybe once a month is fine but regularly buying tickets is insane! why not just put that money in the bank and save.

    Jerome from Madamedeals
    http://madamedeals.com

Speak Your Mind

*