Make Money From Home

7 Better Ways To Spend Your Lottery Ticket Money – GOBankingRates

Money / Financial Planning


Money / Financial Planning

karenfoleyphotography /

On average, American adults spent about $320 annually on lottery tickets in 2019, according to a study by 24/7 Wall St. When you break it down, that’s nearly $27 per month. That might not seem like a lot of money, but over time those funds will add up. And unfortunately, without a winning ticket, you’ll have nothing to show for your expenditures in the end.

See: 6 Ways Anyone Can Save $20K in 5 Years, According To Experts
Learn: Why It Matters To Have Conversations About Money With Friends

You might even spend more than $320 per year on lottery tickets, but no matter how much, one thing is for sure: your cash is highly likely to be worth more if placed elsewhere. After all, the most popular lottery game in the world offers a dismal one in 292,201,338 chance of winning the jackpot.

Here are seven more sensible ways to spend your lottery ticket money and increase your odds of living richer.

Pay Off Your Home Faster

“If you’re a home owner, then you can pay a little extra on your mortgage,” suggested Brian Rellihan, CFP(r), MBA, EA, senior financial advisor with Wise Wealth Partners. “With the increased standard deduction many households aren’t able to take advantage of the mortgage interest deduction (Schedule A). Therefore, every extra payment towards the principle is a risk-free rate of return equal to the mortgage rate you are being charged. Additionally it’s a forced savings by increasing the equity you have in your home.”

If you pay an extra $320 per year toward a $300,000, 30-year mortgage with a 4% interest rate, you can shave off one year of payments and save $8,238.97 in interest.

Participate in Your Company’s 401(k)/403(b) Match Program

“When you save for retirement with a 401(k)/403(b), you’re automatically paying yourself first while setting aside money for your future,” said Andrew Broughman CFP(r), CRPC(r) and vice president of wealth management at Fairwinds Credit Union. “Also contribute up to the full amount your employer will match every year. No game of chance needed for this one!”

By contributing an extra $320 per year, you could receive up to a 100% match on those funds as long as you don’t exceed the match limit.

Consider This: Are You Really Financially Happy If You Make Six Figures?

Start an Emergency Fund

“Consider saving three to six months of expenses after you’ve paid off all of your debt, except your house, instead of spending on those scratch off tickets,” said Broughman. “Your three to six months of savings will cover food, housing, utilities, …….


Leave a Reply

Your email address will not be published. Required fields are marked *