Are you banking on the Lottery?
No one likes to be the voice of reason when the topic is something as exciting and life changing as winning the lottery. But what if we looked at that weekly spend a little differently?
Let’s say you have a surplus of $120 per week. You decide to spend $20 on lottery tickets, leaving $100 that could be invested. Now, instead of hoping for a lucky win, imagine consistently investing that $100 into a long-term portfolio earning 7% per annum.
Over 20 years, you would have contributed $104,000. But thanks to compound growth, your investment would grow to around $228,000. That’s more than double your contributions without needing luck, just time and discipline.
Compare that to the lottery. Spending $20 per week over 20 years adds up to $20,800. And unless you beat odds that are often worse than one in 10 million, that money is gone.
This isn’t to say you shouldn’t enjoy the occasional ticket — just keep it in perspective. The real “win” comes from consistent investing. It’s not flashy, but it works.
Here’s a simple way to think about it:
- $20/week on lottery = hope and slim odds.
- $100/week invested = a proven path to wealth.
If you’re someone who enjoys the thrill of the lottery, consider this: investing regularly is like buying a ticket to your own financial freedom. And unlike the lottery, the odds are stacked in your favour.
If you’d like to explore how to make the most of your surplus income, or review your current investment strategy, feel free to get in touch.
Craig Kirkwood ADFP
Authorised Representative (No 401525)
