What would you do if you won the lotto?

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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.

Today:

  • 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
What happens when you win the lotto?
  • 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
Why doesn’t everyone do this?
  • 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
How to value every dollar?
  • 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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