Each year, Americans spend more on lottery tickets than sports teams, books, movies, video games and music combined. Logically, we know that our chances of winning are microscopic (precisely 1 in 292 million), yet we roll the dice anyways. Human nature tells us that we’ve got a real shot at winning the lottery, but we won’t be one of the 9 people killed each day due to texting and driving.
We can use the massive $687 million Powerball drawing in October to get smarter about money.
A lesson in healthy risk
When the lottery is at historical highs, it’s understandable that some folks would throw $5 towards a ticket. People spend huge sums on entertainment, so spending $5 on a lottery ticket could very well be a cheaper type of fun for some people. In order to get comfortable investing, the ability to evaluate and take on healthy risk is a useful trait.
Realistically evaluate the numbers
It’s tempting to play the lottery when the jackpot is huge, however, it’s an unwise investing strategy to make a habit of playing when the prize is low. This methodology is an unrealistic method to slowly accumulate wealth, as that same money and effort can be channeled into a more productive and enriching long-term approach to building wealth through investing.
Patience, grasshopper
Putting money into your investment portfolio on a regular basis takes patience, but could become a successful strategy that pays off in the long-term. It’s tough to set aside money each month, which is why shifting lottery spending into an investment account can be a wiser decision. You’re ‘used to’ spending that money on lottery tickets, so it won’t feel any different to funnel it into an investment account instead.
The best part? You can watch your investment grow, even during flat markets. Equity crowdfunding is an ideal way to gently enter the market and start small, with what is affordable for your budget and comfortable for you.
Regular gamblers can apply their eagerness to go beyond basic methods to find potential winners, which is an excellent trait for investing.
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