A temptation that needs some thought I never play in lottery games, and I’ll explain why. I expect a lot of disagreement, and that’s okay because everyone looks at life differently. If you think it’s your way out of trouble and it gives you hope, or you think it’s a fun thing to do like bingo or cards then that is indeed understandable. As for me, it’s neither hopeful nor fun, and I express this to my kids.
For one thing, there are the odds. If people could ‘see’ odds, they would think twice about their chances. A quick look at the Powerball website tells you the probability of winning the jackpot is 1 in 175,223,510. One way to look at the Powerball odds is to imagine a standard size 3 bedroom home filled to capacity with standard sized white marbles from the floor to the ceiling. That would take about 175,000,000 marbles. Then randomly place one black marble somewhere within the white marbles. You pay $2 for one ‘play’ to pick a marble out of that house hoping it to be the black one. Maybe, if you thrust your arm in deep, you will grab that one black marble. As for me, I’d prefer to buy a donut.
Understand, the odds of dying in a motor vehicle accident in your lifetime is 1 in 102 (injuryfacts.nsc.org). I wish it were 1 in 175,000,000! You are 1,750,000 times more likely to die in a motor vehicle accident than win the lottery!!!
Let’s say you want to increase your odds of winning and you spend $1000 in plays. Now your odds are better by 500! (Using 500, $2 plays). That means you have one chance in 350,000 (175,000,000 divided by 500 plays). But here is an analogy. The population of Honolulu, Hawaii is around 350,000 citizens. Would you spend $1000 for a chance to win Powerball by randomly choosing the one person living in Honolulu that would make you a winner? Maybe you would. I would, instead, buy an iPhone X, pay off debt, or invest it. A $1000 investment is a great start for the future.
There’s the appreciation (self-satisfaction). Here’s where you will think I’m entirely a looney tunes character. I have found I don’t appreciate things given to me near as much as those things I earned. Of course, I would accept the money if I played and won, but I’d have to give it away to others who are striving to help themselves (not to the ne’er-do-wells that ask for it). Now maybe I would buy a Jaguar XJ-L with a small percentage. If I did, the Jag would mean nothing to me compared to my 2006 Mazda Miata, paid for with money I earned by my contributions through the workforce. Now that is self-satisfaction.
There is no accomplishment in winning money, not unless there is an effort in the winning. A $2 hope is not much effort and is not an investment. If you pay $2 to enter a race and win, then you had a hand in the winning. Pulling a black ball in a sea of white balls has nothing to do with accomplishment. Don’t get me wrong. Winning money would be very exciting, especially if you need it to get out of debt. And someone always wins, yes! But I ‘bet’ it won’t be you, and I’d be right 999,999 times per million. Winning a lot of money will allow you to feel better about your situation, but not better about yourself. Your excitement will slowly wither away.
Most people don’t thrive on money - they thrive on accomplishment. It turns out that accomplished people usually have money. That’s not an accident.
The false hope. Dreams with a plan of action can come true. Dreams with hope as your only ally can cause failure and depression. This ties in with the lack of understanding of just how unlikely you are to win big. This belief that you will have good fortune may keep you from a realistic path to success. Hope alone will not allow you to succeed. Hope will put dreams in your head that won’t come true without a practical plan. If they come true, you may find the dream cannot meet your expectations - or even become a nightmare
The change in lifestyle and expectations. Lottery winners are more likely to declare bankruptcy within three to five years than the average American.
What's more, studies have shown that winning the lottery does not necessarily make you happier or healthier. In fact, about 70 percent of people who win a lottery or get a big windfall actually end up broke in a few years, according to the National Endowment for Financial Education. Families argue some get into drugs, many get robbed or cheated all because their life has changed so quickly and they’re not prepared for it. It has been said that if you took money from rich people and gave it to the poor making everyone equal regarding assets, those that had it before would get it back, and those who were poor will end up poor again. I happen to believe that is mostly true. Having money is not near as useful as knowing how to handle money. Spending and saving habits are difficult to change, and the overall ability to manage money is not common among many who don’t have it.
Having a purpose. Many people say they would quit their jobs if they won the lottery. I don’t blame them because it’s likely their jobs are not satisfying in the first place. But the worst thing you can do is to not do anything. After some amount of time, you will need something meaningful to do, or you will go crazy. The best bet is to use some of your newfound money to learn about something you are really interested in and do that.
The need for purpose is one of the defining characteristics of human beings. Human beings crave purpose and suffer serious psychological difficulties when we don’t have it. ‘Purpose’ is a fundamental component of a fulfilling life.
The alternative use of the money. You could take the money you spend weekly on lottery tickets and try something else. The average American household brings home about $1,000 per week, meaning setting aside $10 is basically 1% of household income. Yet, setting aside $10 per week over 45 years will yield $165,776 by the time you turn 67 years old.
Here's what would happen if you began increasing the weekly savings rate:
Summary
I never play the lottery, but I would never criticize anyone who does. Obviously, there are many reasons to do so. I don’t deny the fun it is for some people. I even understand the excitement of the possibilities, as unlikely as they are. But there is more to think about than winning. Some of those things to ponder are the overwhelming odds, your self-satisfaction, false hope, having a purpose, and other ways to use the money. If you play, play for fun – not to win!
This is what I teach my children, and I confirm it by doing what I preach. I do want them all to be self-sufficient, and while money can help, it’s their ability to manage money smartly that will stay with them. Happiness comes with purpose and accomplishment much more than money alone. At least, that is true in my looney tunes world.
#powerofdadhood
For one thing, there are the odds. If people could ‘see’ odds, they would think twice about their chances. A quick look at the Powerball website tells you the probability of winning the jackpot is 1 in 175,223,510. One way to look at the Powerball odds is to imagine a standard size 3 bedroom home filled to capacity with standard sized white marbles from the floor to the ceiling. That would take about 175,000,000 marbles. Then randomly place one black marble somewhere within the white marbles. You pay $2 for one ‘play’ to pick a marble out of that house hoping it to be the black one. Maybe, if you thrust your arm in deep, you will grab that one black marble. As for me, I’d prefer to buy a donut.
Understand, the odds of dying in a motor vehicle accident in your lifetime is 1 in 102 (injuryfacts.nsc.org). I wish it were 1 in 175,000,000! You are 1,750,000 times more likely to die in a motor vehicle accident than win the lottery!!!
Let’s say you want to increase your odds of winning and you spend $1000 in plays. Now your odds are better by 500! (Using 500, $2 plays). That means you have one chance in 350,000 (175,000,000 divided by 500 plays). But here is an analogy. The population of Honolulu, Hawaii is around 350,000 citizens. Would you spend $1000 for a chance to win Powerball by randomly choosing the one person living in Honolulu that would make you a winner? Maybe you would. I would, instead, buy an iPhone X, pay off debt, or invest it. A $1000 investment is a great start for the future.
There’s the appreciation (self-satisfaction). Here’s where you will think I’m entirely a looney tunes character. I have found I don’t appreciate things given to me near as much as those things I earned. Of course, I would accept the money if I played and won, but I’d have to give it away to others who are striving to help themselves (not to the ne’er-do-wells that ask for it). Now maybe I would buy a Jaguar XJ-L with a small percentage. If I did, the Jag would mean nothing to me compared to my 2006 Mazda Miata, paid for with money I earned by my contributions through the workforce. Now that is self-satisfaction.
There is no accomplishment in winning money, not unless there is an effort in the winning. A $2 hope is not much effort and is not an investment. If you pay $2 to enter a race and win, then you had a hand in the winning. Pulling a black ball in a sea of white balls has nothing to do with accomplishment. Don’t get me wrong. Winning money would be very exciting, especially if you need it to get out of debt. And someone always wins, yes! But I ‘bet’ it won’t be you, and I’d be right 999,999 times per million. Winning a lot of money will allow you to feel better about your situation, but not better about yourself. Your excitement will slowly wither away.
Most people don’t thrive on money - they thrive on accomplishment. It turns out that accomplished people usually have money. That’s not an accident.
The false hope. Dreams with a plan of action can come true. Dreams with hope as your only ally can cause failure and depression. This ties in with the lack of understanding of just how unlikely you are to win big. This belief that you will have good fortune may keep you from a realistic path to success. Hope alone will not allow you to succeed. Hope will put dreams in your head that won’t come true without a practical plan. If they come true, you may find the dream cannot meet your expectations - or even become a nightmare
The change in lifestyle and expectations. Lottery winners are more likely to declare bankruptcy within three to five years than the average American.
What's more, studies have shown that winning the lottery does not necessarily make you happier or healthier. In fact, about 70 percent of people who win a lottery or get a big windfall actually end up broke in a few years, according to the National Endowment for Financial Education. Families argue some get into drugs, many get robbed or cheated all because their life has changed so quickly and they’re not prepared for it. It has been said that if you took money from rich people and gave it to the poor making everyone equal regarding assets, those that had it before would get it back, and those who were poor will end up poor again. I happen to believe that is mostly true. Having money is not near as useful as knowing how to handle money. Spending and saving habits are difficult to change, and the overall ability to manage money is not common among many who don’t have it.
Having a purpose. Many people say they would quit their jobs if they won the lottery. I don’t blame them because it’s likely their jobs are not satisfying in the first place. But the worst thing you can do is to not do anything. After some amount of time, you will need something meaningful to do, or you will go crazy. The best bet is to use some of your newfound money to learn about something you are really interested in and do that.
The need for purpose is one of the defining characteristics of human beings. Human beings crave purpose and suffer serious psychological difficulties when we don’t have it. ‘Purpose’ is a fundamental component of a fulfilling life.
The alternative use of the money. You could take the money you spend weekly on lottery tickets and try something else. The average American household brings home about $1,000 per week, meaning setting aside $10 is basically 1% of household income. Yet, setting aside $10 per week over 45 years will yield $165,776 by the time you turn 67 years old.
Here's what would happen if you began increasing the weekly savings rate:
- At $20 per week, you'd have $331,553 by age 67
- At $40 per week, you'd have $663,105 by age 67
- At $50 per week, you'd have $828,882 by age 67
- At $100 per week, you'd have $1,657,765 by age 67
Summary
I never play the lottery, but I would never criticize anyone who does. Obviously, there are many reasons to do so. I don’t deny the fun it is for some people. I even understand the excitement of the possibilities, as unlikely as they are. But there is more to think about than winning. Some of those things to ponder are the overwhelming odds, your self-satisfaction, false hope, having a purpose, and other ways to use the money. If you play, play for fun – not to win!
This is what I teach my children, and I confirm it by doing what I preach. I do want them all to be self-sufficient, and while money can help, it’s their ability to manage money smartly that will stay with them. Happiness comes with purpose and accomplishment much more than money alone. At least, that is true in my looney tunes world.
#powerofdadhood
