by Avi Gutfreund. After nobody won the Mega Millions drawing on Friday night, the pot grew to $1.6 billion, making it largest jackpot in US history. With millions of Americans expected to buy tickets in the hopes of winning the prize, the pot is expected to grow substantially, with the possibility of it surpassing the $2 billion mark before Tuesday night’s drawing. The Mega Millions lottery has been rolling over without a winner since July.
But don’t buy a ticket. No, I won’t ramble on about how the vast majority of lottery winners blow their money within the first five years. Nor will I be warning you about the people that will inevitably be harassing and suing you for your money. I’m sure you’d be able to deal with the stresses that come along with being wealthy. I also won’t be lecturing you on the hashkafic aspects of buying a ticket and whether it constitutes hishtadlus or not. That discussion is far above my paygrade. Rather, you shouldn’t buy a ticket because purchasing it is possibly keeping you from becoming wealthy.
Roughly 280 million tickets were sold for Friday’s drawing. At $2 per ticket, that means some $560 million, an astronomical sum, was thrown down the tubes of statistically impossible dreams. Imagine for a moment if that money was pooled and a well-managed, profitable business was created with that cash instead. Everybody would be far better off. This concept applies not only on the national level, but on the individual level as well. If, instead of trading away your cash for a pipe dream, one with no more than a 1 in 302,575,350 chance of coming to fruition, you would put that money away and brainstorm of ways to maximize its value, you would be far ahead of everyone else.
Over 700,000 Americans became millionaires in 2017, not by investing in worthless lottery tickets, but by toiling and pushing to maximize the value inherent in every dollar they earned. In contrast to this, far less than 1000 total people win over $1 million playing lottery games each year. In fact, you are 300 times more likely to be struck by lightning than ever winning the lottery. The return on investment for those playing lottery games, even including scratch-off tickets which have better odds of winning, is terrible. Wealthy Americans generally know this; there’s a reason you don’t see people in fancy suits buying Mega Millions or Powerball tickets. The lottery promos lie, the numbers don’t.
Following your dreams of being able to financially support your family in comfort and without penny-pinching is virtuous and admirable. But the way to achieve that goal is not by tossing your change in a wish fountain and hoping it spits out millions of dollars. The way to accrue enough cash reserves to sustain the lifestyle you wish to live, as well as allow you to assist those in need, is by taking the money you would otherwise have spent on lotteries and putting it in a safe investment. Sit down, take a pen and paper, and begin jotting down your ideas for how to turn your $2 into something much greater. You can put your money in US Treasury notes. It won’t make you rich quickly, but your money will grow. Or you can go slightly bolder and invest in stock of major US companies. They return profits 73% of the time. Not bad relative to your chances with the lottery system. The facts of the matter is that your odds of winning with simple, time-proven strategies is far superior than the chance of striking it rich via the lottery system. It’s really simple math. With that being said, I’m off to buy a lottery ticket.
If I win (which I do not think will happen I bought ticket just for fun and the hock) I will keep it a secret and go claim it in 11 months and probably give most to tzedakkah since klal needs it / so I do NOT AGREE !! Go buy!!
so in a standerd investment you make 100% of your investment in 10 years so if you invest your $2 by 2028 it will be $4 and by 2038 $8 and by 2048 $16 OR you can buy a lottory and have fun thinking about what your going to do “IF” you win
Apparently you are naive enough to completely lack any concept of compounded interest. Feel free to educate yourself. You can start my googling “rule of 72”.
“smart” got the ‘Rule of 72’ exactly right – money doubles every 10 years or so at an assumed annual return of 7.2%
Your basicly saying problem is waste of 2 dollars, well lets see once in every 5 years for argument sake where its really high you”l buy a ticket for fun , so for 2 U.S AMERICAN DOLLARS you can’t have fun??
“Imagine if all the money was pooled and a well managed business….”
We already have a system like that. It’s called taxes.
HAHAHAHAHAHA!!!!!
Thank you @smart this letter makes no sense
now that I read this letter how can I chas v’shalom spend 2 dollars for fun once in a decade !!!!
Hmm
I can buy two dollars worth of gumballs and sell them for .25 each, and I’ll make 5 bucks
Is that what ya mean?
He is basically saying if there was a way to pool over 500 million being spent and invest in a good business we would all have a little something instead of all of us having nothing. I agree in theory but not sure how to pull it off.
it’s called Kickstarter
Completely ridiculous letter. A person doesn’t buy for the odds because life isn’t about odds you think god plays odds? If god wants you to win you will win. Period. People think that people that have made a lot of money is because they are smart and good business men. False! It’s because that was their lottery ticket it’s just disguised in a way of normalcy. And after 120 the people that think they made money because of themselves will get hit right between the eyeballs and will realize it was all god……..
Is this letter a joke , I can’t believe I just read all this , were talking about 2 dollars that your saying is a waste of money
I wasted more value in time by reading the letter than the $2 on the lottery…
People should cease buying coke. Imagine all the money spent on coke, how many billions of dollars could be saved and start a worthwhile business investment ? For shame all you coca cola drinkers! The world would be so much more productive if all the people would pool their money that they otherwise would have spent on coke and make a fund!. It’s amazing how stupid we all are and why we dont follow this guys advice!
What a naarisher idea! People buy the lottery for the sheer thrill of dreaming. No different than you buying a coke for enjoyment. They are both legal purchases, one to quench your thirst and the other to day dream for a few days.
So maskim, why does everyone spend so much money on food if everyone was to limit $100 everytime they went shopping for a year we would have an extra billion dollars and we can use it for tzedakkah!!! Wow what a shame people spend money. (think a little)
The ice cold logical reasoning of this letter felt so chilling. Then I got burned on the last line.
The writer is hoping we all stop buying …so that he can have a slightly larger chance if winning…haahah
What I think.
Even if you are the only person in the US that buys a mega millions ticket you will the same chances.
the article makes no sense if i take the 2 dollars and invest it in something that will give me a 100% compounded interest every year it would take 6 years to get $100 9 years to get $1000 and 19 years to get a million dollars and such an investment doesn’t exist
R’ Elchanan Hertzman zt”l said:
Every single person dies, yet nobody
thinks it will ever happen to him.
Only one person wins the lottery,
yet everybody thinks it will happen to him.
Even for those who win big, studies whow they tend to spend it off quickly.