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The Futility of playing the lottery

The Futility of playing the lottery

Written by R. A. Stewart

INTRODUCTION

Is it possible to use a system to beat the odds and live a life of luxury? The lottery or lotto as it is called in New Zealand first began in 1987 and I have never heard of any lotto winner claiming to have found a system to beat the odds. Most have won using lucky dips or lucky numbers, others have just selected their own numbers. 

The odds of winning the lottery

Lotto is played by millions of people worldwide in the hope of one day becoming lucky but for the vast majority of people that lucky lotto day never arrives. The huge odds against winning lotto ensures that millions contribute to the pool but only a few hit the jackpot.

In New Zealand a lotto player is required to select six drawn numbers out of forty. It is called division one. The odds of any one set of six numbers being the successful six are in in three million+

Power ball is when you have selected division one + the power ball number which is 1-10. The odds of winning a power ball are so remote that one is more likely to be struck by lightning. It is not surprising that the power ball often jackpots to huge amounts.

Some mathematicians have described the lottery as a tax on stupidity.

At least 66% of New Zealanders play lotto at least once a year. I do not know how many of them play every single week.

People who would otherwise consider themselves intelligent fall for the enticing advertising in order to participate in a gamble that is unlikely to succeed. Rationality simply goes out of the window.

A song and dance is made about the fact that 20% of all lotto sales is donated to various charities.

What I have to say about that is the lottery sucks out more money from communities than it returns. 

If one was simply donating to charities directly the person making the donation is able to claim 33% back in tax. (New Zealand). The advantage of donating to charity directly is one can choose who to give money to.

Lotto players will completely ignore all of the mathematical statistics with the argument, “You have got to be in to win.”

Problem with that kind of thinking is that few people ever do and often when they do win something, the payoff is usually one of the smaller prizes which is often spent on buying more lottery tickets or quickly frittered away in the blink of an eye.

ANNUAL LOTTERY SPENDING

If a lotto player spends $10 per week on the lottery that equates to $520 per annum. Think of what else that could have been invested in or put to better use.

There are so many share market trading platforms around today that the $10-$20 per week spent on lottery tickets could easily be used to start an investment portfolio.

Do the mathematics; $10 per week equates to $520 per annum. Over a lifetime this all adds up to a fortune.

LOTTERY SYSTEMS

Many people will swear by systems; whatever you are told the statistical odds of any set of six numbers being drawn are the same, however, if you choose numbers or a combination of numbers that are not chosen by other players then you will share the prize pool with fewer players if it is your lucky day. This is the type of strategy used by some system promoters.

Do not be deceived into thinking that any system will increase your chances of winning. This is not true!

As far as finances are concerned, I am saying that the money spent on lottery tickets is better directed at investments where you at least have something to show for it such as your retirement fund. 

It should be kept in mind that the lotto millionaires are created only because millions of lotto players have lost. You don’t have to be one of them!

ABOUT THIS ARTICLE

You are welcome to use this article to post on your site, as content for your ebook, or share it on social media. Visit my site www.robertastewart.com for other articles on finance.

www.robertastewart.com

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Circuit break your bad spending habits

Circuit break your bad spending habits

Written by R. A. Stewart

Bad spending habits can quickly add up and cost you a small fortune over a period of time. Buying coffees downtown may cost you a fiver but if you are doing it daily then that is $25 per week which you could have used for some other purpose. 

A bad spending habit can be very hard to break so why not use a circuit breaker. That is, decide that you are not going to do this bad habit for 24 hours. See how you go.

Coffees

Have you ever thought about how much you are spending on coffees when you are downtown? Let’s think about it, $5 spent on a coffee + whatever you choose to eat with your coffee adds up to a small fortune. If you are spending $5 on a coffee and $4 on a couple of sandwiches then that is $45 per week. That is assuming you work Monday-Friday. Do the maths and your $45 per week adds up to over 2k per year. If you need to find an extra 2k per year to balance the budget or to go towards your other goals then this is a good starting point.

Eftpos card spending

Using the eftpos card is so convenient, so many of us do it without even thinking about how it is affecting our bank accounts. There is a cost to prolific eftpos use and that is high bank fees at the end of the money. Breaking out of the habit of using our cash instead of cards helps us to understand that it is real money we are spending. Putting a 24 hour halt to our eftpos card use will help us to break this costly habit. 

Buying lunches

This is another area where you can save a bit of money. If you are into the habit of buying your own lunch instead of making it then why not decide that you will not buy your lunch for today. If you can put a circuit breaker on this habit then it may help you to form the habit of making your own lunch.

Credit card spending

If you have a credit card spending habit then the question has to be asked, “Are you living beyond your means?”. I know lots of people who have never owned a credit card yet are on benefits or low paid jobs. Lifestyles can be adjusted according to your level of income but the problem is when you have accumulated debts then all of a sudden have lost your job. If you have made a habit of using your credit card then make a habit of not using it for a day at a time then after a week or two it will become a habit and your finances will be in a better shape. Adopt the motto, “If I don’t have the money I don’t buy it!”.

Gambling

This habit can destroy a family’s financial future. Placing a 24 hour break on all gambling activities will help you to break the habit. Unfortunately, some people are addicted to some forms of gambling. If this is you then, it is time to seek help. 

Internet spending

This is another drain on your finances. Surfing the internet looking for stuff to buy can drain your bank balance. This is money which could have been put toward some investment. 

Alcohol, smoking, and making unnecessary trips in your car are other drains on your finances.

It is not how much money you make which will enable you to get rich, it is how much you save and invest. It is the old saying, “Different outcomes are due to different choices,” therefore if you want a different outcome in your life from what you are experiencing then make different choices.

About this article

The information in this article is of the writer’s own opinion and may not be applicable to your own personal circumstances therefore discretion is advised. You may use this article as content for your blog or website. 

Read my other articles on www.robertastewart.com

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The odds of winning the lottery

INTRODUCTION

Is it possible to use a system to beat the odds and live a life of luxury? The lottery or lotto as it is called in New Zealand first began in 1987 and I have never heard of any lotto winner claiming to have found a system to beat the odds. Most have won using lucky dips or lucky numbers, others have just selected their own numbers. 

The odds of winning the lottery

Written by R. A. Stewart

Lotto is played by millions of people worldwide in the hope of one day becoming lucky but for the vast majority of people that lucky lotto day never arrives. The huge odds against winning lotto ensures that millions contribute to the pool but only a few hit the jackpot.

In New Zealand a lotto player is required to select six drawn numbers out of forty. It is called division one. The odds of any one set of six numbers being the successful six are in in three million+

Power ball is when you have selected division one + the power ball number which is 1-10. The odds of winning a power ball are so remote that one is more likely to be struck by lightning. It is not surprising that the power ball often jackpots to huge amounts.

Some mathematicians have described the lottery as a tax on stupidity.

At least 66% of New Zealanders play lotto at least once a year. I do not know how many of them play every single week.

People who would otherwise consider themselves intelligent fall for the enticing advertising in order to participate in a gamble that is unlikely to succeed. Rationality simply goes out of the window.

A song and dance is made about the fact that 20% of all lotto sales is donated to various charities.

What I have to say about that is the lottery sucks out more money from communities than it returns. 

If one was simply donating to charities directly the person making the donation is able to claim 33% back in tax. (New Zealand). The advantage of donating to charity directly is one can choose who to give money to.

Lotto players will completely ignore all of the mathematical statistics with the argument, “You have got to be in to win.”

Problem with that kind of thinking is that few people ever do and often when they do win something, the payoff is usually one of the smaller prizes which is often spent on buying more lottery tickets or quickly frittered away in the blink of an eye.

ANNUAL LOTTERY SPENDING

If a lotto player spends $10 per week on the lottery that equates to $520 per annum. Think of what else that could have been invested in or put to better use.

There are so many share market trading platforms around today that the $10-$20 per week spent on lottery tickets could easily be used to start an investment portfolio.

LOTTERY SYSTEMS

Many people will swear by systems; whatever you are told the statistical odds of any set of six numbers being drawn are the same, however, if you choose numbers or a combination of numbers that are not chosen by other players then you will share the prize pool with fewer players if it is your lucky day. This is the type of strategy used by some system promoters.

Do not be deceived into thinking that any system will increase your chances of winning. This is not true!

As far as finances are concerned, I am saying that the money spent on lottery tickets is better directed at investments where you at least have something to show for it.

 

ABOUT THIS ARTICLE

You are welcome to use this article to post on your site, as content for your ebook, or share it on social media. Visit my site www.robertastewart.com for other articles on finance.