I bought 3 lottery tickets this week. foolish?

**Broken Arrow** · 01-15-2010, 10:16 AM

Weeeell, the bottom line for me is that, if it's within budget, then I really can't say anything.

Although I've never bought lottery tickets, I have gambled at a casino before. I didn't think it was wise, but because I've never tried it before, I thought it'd be interesting just to do it just one time.

But I did that within budget, spending no more than what I wouldn't have spent on a weekend out doing anything else.

**kilapapipa** · 01-15-2010, 10:21 AM

Just my .02 but we live in a non-lotto state and vacation 2 times a year to Texas. We always buy some tickets of all sorts. It is part of the vacation and who knows, maybe we can have a house in both states if we hit it someday. I don't think you are foolish.

**KTP** · 01-15-2010, 11:17 AM

Yes you were a fool. Just think if you had invested that $20 in a large stock company instead, like Washington Mutual or Lehman Brothers, how much better off you would be today!

I actually buy $5 a year in lotto also lol.

**GREENBACK** · 01-15-2010, 11:42 AM

I sometimes play in an office pool and don't consider it foolish at all. I know the odds of winning are very, very low but I also know of a group in a town near me who won millions. I can blow the 5 or 10 bucks a month without much lost sleep so why not. These warnings about not playing are intended for serial players who can't afford to do it.

**Beppington** · 01-15-2010, 11:46 AM

If you thought you might win: foolish

If you can't actually afford them: foolish

If you carry debt of any kind, you could've instead paid off 5 bucks of it, which in the long term will be much more than 5 bucks: foolish

If you can afford them, don't carry any debt & realize you paid 5 bucks for whatever entertainment was involved: fine

**disneysteve** · 01-15-2010, 12:09 PM

As you all know, we like to gamble, but we do it entirely as a form of entertainment, not as a form of financial planning. We save over 21% of our gross income. We are debt-free except our mortgage (which we make extra payments on). We are funding our retirement accounts. We are saving for our daughter's education. We are doing all the stuff all the experts recommend.

My theory is that once all of those things are taken care of, it really doesn't matter how the rest of the money gets spent. If I said that I spent $50/month on clothing, would anyone think that was particularly foolish? Probably not. If I said I spend $50/month on lottery tickets, though, lots of people would criticize that. Personally, I don't see the problem if, as others have said, it is money that you can truly afford to spend.

Personally, I rarely buy a lottery ticket, maybe 2 or 3 times per year. I prefer to gamble on games that I actually have a decent chance of winning. Last weekend, I won over $700 at the casino. The week before that, I won over $300. Two weeks before that, I also won over $300. Of course, some trips I lose, but it generally balances out over time.

Just as with investing, the lottery is big risk, big reward. Buying a lottery ticket is no more foolish than buying shares of some penny stock. The likelihood of making money is virtually zero, but if you have fun in the process, I see no harm in that.

**myrdale** · 01-15-2010, 12:24 PM

As long as you consider it "blow money" I don't see any issue buying a couple of tickets here and there.

It is kind of like alcohol, as long as you're only buying a six pack and having a good time with friends every now and then IMHO there's nothing wrong with that that. The problem comes when you start abusing it. If your going though that same 6 pack every day, by yourself, then you probably have an issue.

A couple years ago I stepped out of a local gas station to see a man with a stack of about 40 scratch off tickets. He was cursing and was very upset because he was not winning. That is a problem.

I purposely do not gamble at all myself because my father is a boarder line gambling addict. He will drive 200 miles to the casios 2 or 3 times a month, but will not take the time to drive the same distance in the opposite direction to see me saying I simply live too far away. He see's gambling as a 2nd income. He fudges the numbers of how much he looses / wins. I am to the point now that it is his business, but I want no part of it, in any way myself.

He spends about $40 per month on lottery tickets, and has been playing the same numbers every month for +20 years now. About 3 years ago they changed the shift he was working and for 3 months he was not able to go buy tickets. Then when his shift changed back he purchased tickets again, and went though the history of what numbers had landed while we was on the different shift. ALL of his numbers hit, $13 million dollars, and he didn't have a ticket. He was physically sick for a week. Personally I don't feel we needed the money anyway.

Sorry for ranting on about my personal issues with my father, but that is the only real source I have on the matter. Past all that he really is a great guy who has always loved and provided for his family.

In the end, if you can afford them and don't mind blowing the money go for it. But don't buy the tickets expecting to win and don't let it become a problem.

**Beppington** · 01-15-2010, 12:40 PM

Originally posted by disneysteve View Post

My theory is that once all of those things are taken care of, it really doesn't matter how the rest of the money gets spent.

That's it

**umarider** · 01-15-2010, 05:30 PM

Even though the odds are really against winning $, lottery tickets can do some good.

I am dyslexic w/ regards to numbers, but the issue wasn't identified until I was in college. By that time I'd been through years of struggle and being told that I was lazy, etc. w/ regards to math. My attitude towards any sort of math was really lousy. It was suggested to me that I find some way to make math "fun" again. So I bought the occasional lottery ticket. I'd purposely avoid finding out the winning numbers to prolong the "daydream" period. During that time, I'd do a lot of mental math w/ the jackpot: calculating annual payouts, taxes, savings, charitable donations, purchases, etc. I'd "spend" the money all different ways, doing all the math in my head. I finally got comfortable with numbers.

Now, I buy tickets when I have a long drive ahead of me, because doing the "jackpot" math keeps me alert while I drive. My only issue is trying to remember to check the tickets before they expire!

**ukgaz** · 01-15-2010, 05:54 PM

I buy one quick pick every tuesday for the mega millions. Somebody has to win - it probably won't be me but if you don't shoot you won't score!

I certainly will never be one that spends $40 a time on tickets! I'd rather put $40 on Fighter A to beat Fighter B

**daviddane** · 01-15-2010, 11:49 PM

I never buy lottery tickets as i believe in money earned from doing work than getting it by luck.

**elessar78** · 01-16-2010, 08:54 AM

I buy a powerball ticket every time I go into a gas station or mini-mart that sells them. Now, that's a rare occasion because I pay at the pump 99% of the time and I rarely go into convenience stores. I probably say that I spend $10 on lotto tickets annually.

Let's face it, we all watch our money because we know how important it is. I put 12% of my annual gross income into mutual funds, what's wrong with trying to hit a home run with an amount equivalent to waay less than 1% of my gross income?

I actually do like to do "thought experiments" and see what I'd do if I won the jackpot of say $1 million/$10 million/etc.

I like to think that I wouldn't quit my job right away. I'd like to just let the money sit in a bank for a year and let my life normalize. I'd talk to my accountant ASAP. 10% of it would be set aside as capital for a charitable/trust. I'd pay off all my debts right away. If it was a large enough amount, I'd set it up so I'd have a certain level of guaranteed income for the rest of my life.

I think you also have to prepare yourself for the onslaught of sob stories, media attention, people asking for donations, investment opportunities, etc.

As in all endeavours, opportunity favors the prepared mind . . . however statistically improbable.

**ukgaz** · 01-16-2010, 10:26 AM

I have the same thought experiments. We would stay in our jobs waiting for us to get over the urge to just spend and then retire. Initially we would not tell anyone we won and would just wait for the excitement to fade and also work out a way to make the most income from our winnings. The only people who we would give money to is Parents and Brother/sister

**jasonnoguchi** · 01-18-2010, 01:06 AM

Well, one wise man said, its even more foolish not to buy the lottery if the jackpot is high.

I personally still buy the lottery because using money I am not bothered with (ten twenty bucks) for a chance at a significant amount of money makes a lot of sense to me. If you don't play, you will never win.

Especially considering the fact that I only use money that I can't be bothered with just like in options trading. But, never expect to win a lottery. Just treat it as dumping money you don't need into charity. Never expect to make your living out of lottery. I buy it only for a surprise jackpot win if I get lucky one day, a just for fun kinda thing. I don't and I won't try making my fortune from lottery, its a waste of your time. There are better and quicker ways to make money.

I bought 3 lottery tickets this week. foolish?