As the nation holds its breath for the winning ticket holder of the $1.3 billion Mega Millions jackpot to step forward and claim their prize, it's easy to think, “Wow that could have been me. If only I bought one more ticket.”
But as How to Money hosts Matt and Joel are quick to point out, it's very unlikely. The third biggest lottery jackpot in U.S. history only climbed as high as it did because the Mega Millons has been winnerless since April.
“Just bottom line (playing the lottery) is a bad wealth building strategy,” said Joel. “The odds of winning are one in 302 million.”
The pair have done an episode about the lottery before but wanted to remind listeners during Friday's podcast the reality of playing the lottery. According to Joel, winners typically face death, addiction, and even bankruptcy after winning big.
“Something like 70% of lotto winners declare bankruptcy at some point,” said Joel. “Just imagine how people start to look at you if they know you’re a billionaire. They are looking at you for money now, they want a loan, and it is going to drastically affect your life.”
The hosts aren’t against people playing the lottery. As Matt points out tickets are only $2, and the experience can be fun. However, it’s a problem when players start putting large sums of money towards lottery tickets and thinking it's an investment.
“If you would change your life in a significant way, I think it's worth thinking through. ‘What steps could I take now that would allow me to start to replicate some of those changes?'” Matt said.
Catch the entire discussion on How to Money’s latest episode, “Friday Flight – Ginormous Jackpots, Expensive Algorithms, & Geriatric Roommates,” on the iHeartRadio app or wherever you listen to podcasts.
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