Manage episode 232801587 series 2148531
Welcome to Finance and Fury
Have you ever thought about What would you do if you won the lotto?
What would you do with it? This depends on many things: the size, type of lifestyle, and how much you value money now.
- Talk about how winners end up with no money
- The tricks and psychology used to make people buy tickets
Who plays the lotto?
- 11 million participate in gambling
- 6 million have bought a lotto ticket or scratchie
- 1 million spend more than 10% of their annual earnings gambling
- It can turn out well or not
- It takes time to learn about money beyond how to spend it
- You hear many famous cases of how winners lose their winnings
- These are great cautionary tales
- How should you spend it
- Value – not worked for and there is a lot of it. It depends on mind frames.
- Not planned for – it is a lot of money in one go, it’s an oversupply or marginal utility.
- Knowing yourself with money, having self-control and knowing the value of it
- There is a difference between dreaming and planning
- This is how the lotto gets marketed
- Everything has an expected return
- What is an extrinsic value?
- We can calculate the expected return of lotto
- Lotto makes money from keeping people focused on the short term
- The losses are long term
- What if you looked at investing that $60 each week?
- 10y - $47,743 - $31,200 of own money - $16,542 growth - 53% gain
- 20y - $153,931 - $64,400 of own money - $91,531 growth - 147% gain
- 30y - $390,112 - $93,600 of own money - $296,512 growth - 317% gain
Why isn’t this popular?
- Investing is too long of a time frame
- How does dopamine change things?
- What is the expected value for investing?
- How do you get the same feeling of the payoff from long term investing?
- This is about generating your own wealth where the odds are in your favour
- What would you do once you win the lotto?
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