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?
Thanks for listening, if you want to get in contact you can do so here.