Will I win big in the Lotto?

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Could the lotto be my retirement plan?

This might seem like a crazy thing to write about, especially considering the fact that I advocate investing in long-term investments (such as my ETF investments) and I’m generally not a risk taker. But this is real life!

Someone told me that he’d rather play the lotto than invest because in his mind, the South African markets (in fact many global markets) are not dissimilar to gambling. This sparked an idea for me as I’m sure many readers feel the same.

My lotto experiment

I have decided to play R100 on a standard Lotto “quick pick” ticket at the beginning of each month and track my winnings (if any) and also compare this to having saved my money in a bank account and earned 5%. Im only going to do this for 12 months as I don’t really feel that lucky and I don’t particularly advocate this as a good idea.

I’ve actually never played the lotto as I feel it’s a complete waste of money.

The results

I started doing this in June and here are the results from the past 3 months:

Lotto winnings versus investing
Lotto winnings versus investing

The “5% in Bank” column is showing the interest I would earn for a full month so the final row is showing interest until the end of the month.

Thus, by the end of August I have lost R230 whereas had I just saved it in the bank I would’ve had R302.51

Not a great lotto experiment so far!

What now

R20 winnings in the National Lotto

I’ll keep updating this page with the latest results so that at the end of the year we’ll be able to see the full details.

The alluring factor of the lotto is that “unknown” excitement of “what if“.

The reality of the lotto is that only 1 in 50 gazillion gamillion will ever win big.

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You can lose it all!

Please remember that you can really lose all your money in the lotto and that it is simply a game of chance. And your chances are slim!

If you really want to play lotto, budget a set amount and be prepared to lose it! This could be part of our entertainment budget.

Don’t however rely on ever winning anything.

4 comments

  1. Instead of actually spending the money, you could just have selected some numbers, and checked whether they matched that weeks number to establish your “winnings”. Payout sheets could be used to see how much you “pretend win”, unless of course you think you would have hit some jackpot in one year’s time. Take the money not wasted and invest it instead. 🙂

    1. That’s a good idea but then what if I actually win? LOL – I think actually buying the ticket just makes the experiment more “real”

      1. “The reality of the lotto is that only 1 in 50 gazillion gamillion will ever win big.” 🙂 Good luck. 😅

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