Lotto (and scratchies) are for losers

I saw this on my Facebook feed, but what I find interesting is reading what all the people say they would do with the money if they won it in the comments.... I guess a lot of these folk aren't the type to ummmm... save.

https://m.facebook.com/NSWLotteries...76.1073741829.339928556118926/865553680223075

Meanwhile I calculated even our old ppor should pay us 80k in CG each year since we started to own it in 2008, that's $270 per day since we bought it. It's going to give us a bonus "better than even normal full income" payout - no CG tax payable!

Our interest repayment ended up being considerably less than equivalent rent since we had aggressively paid the loan down, and with the bonus of super low interest rates.... Just required some discipline.

Anyway, back on topic, many people pin their hopes on winning lotto or winning the big one on scratchies but a friend told me his 18 yo sister won a lot of money via lotto and she promptly squandered the lot. But that commonly happens....

 

When they have already spent all the money in their minds is it any surprise many lotto winners end up with nothing a short time later?

 

I think it's good to see it as something to do once in a blue moon but I agree that the people that have religiously spend so much money on the lotto and the scratchies, is something which I really do not support. So many ways to create wealth and use the funds to make it work for you. A small stream can end up being a a big stream.

 

100% agree, but it's what you do with it that matters. The people saying spend it on a wedding.... that's money down the drain!
I'd use it for (multiple) house deposits...

But if you end up buying a car, a luxury holiday, consumer goods... you can wave a windfall "goodbye" in a blink of an eye.

Now we should have an unconditional sale of our old ppor 5pm Tuesday... I still have to be careful to not go spending the money willy-nilly.

 

I would rather people buy a lotto ticket than a packet of smokes...

Calling those who buy a lotto ticket "losers" is a bit harsh.
Some might like model airplanes, some PlayStation, some sewing, some a lotto ticket.

Each to their own. But yes pinning the success of life on a ticket is obsurd.

 

Agree! When I was made redundant from Amex would have been easy to buy a car, a holiday, laser vision correction... but instead I used it as an IP deposit. The IP has gone up 70% from purchase price. But property is great for leverage. I've been able to pull out equity from that IP and reinvest....

 

Harsh but I quote you "yes pinning the success of life on a ticket is obsurd"

I tend to think if you have to earn the money, you take more care in how you spend it. Win a windfall and putting it into consumer goods or wedding is a no no. It will be worth nothing in most instances a few years down the track and you'll be no better off. And to people who say they'll buy a house with the winnings, that's fine.

But the likelihood of winning is remote, so you should be trying to buy a house (via shock horror... saving!) without relying on a lottery win imo.

 

I agree with that mindset..
But if a $10 ticket each week is your guilty pleasure - opposed to say buying a women's weekly mag, then I see no problem with that.

 

That's cool. I just find it amusing reading the comments and seeing people announce what they would do with the winnings....

If they say they would buy a house... well, there are ways to own a house or two without relying on a lottery.
But it involves a little delayed gratification...
I stayed with people up in Brisbane. Lovely people but the daughter (28yo living at home) is on a pension. Im sure she could work. She spent in excess of $100 on an iPhone cover.
She spends $200 to get her hair coloured every 6 weeks. Wtf?

The family has no savings. They see some nice houses they would like to buy listed on the internet. I ask them have they saved any money? The answer is no. How do you expect to own a home with no deposit/history of savings?
Oh well. Gives us tenants to rent to.

 

As my mentor once said to me, poor people make poor money decisions. I know it sounds harsh but considering he was once a poor boy from outer west, he has done pretty well for himself and in the earlier years, he had to work in jobs which he hated.

 

There was a study done that showed if you were given your first car rather than having to save and buy it yourself you were something like 10x* more likely to crash it.

*I can't remember the exact study figures just it was a ridiculously high multiple.

I am actually fine with people spending their money however they want to, provided they don't complain.

I don't define "their money" as people receiving government allowances and would be happy to see deductions made for necessities like rent, although if more responsibility is taken out of peoples hands I don't see how they will learn to take responsibility. Society seems to teach people that someone else is to blame for your problems (oops, possible thread derailment).

 

I would not know what the stat is, but this sounds very likely. I would be much more careful driving too if I paid for the car and I would take much more care to not lose my $70 volleyballs if they are bought with my own money. (They get lost/stolen very easily)

+1, but it can be interesting to see how people spend it. Priorities in life show up!

Deja vu lol

 

Just been reading the comments a bit more.

Pay bills, I can never get ahead.
Pay for the wedding loan.
Pay Credit card bills.
Pay to get the car repaired
???
Omg....

 

Yup. Are you of the mindset of being a bank hater? Think they are taking all your money? Well, why not become a bank shareholder? Pays better than putting your savings in the bank....

 

But this is why they do not teach money skills in school.
So there are people who live like this.

 

Are people that spend money on a wedding, car, or holiday losers as well?

 

You can but these things tend to depreciate* in value at best
*classic cars excepted

Buy a performing IP or PPOR first and you can draw down equity... double, triple, quadruple your money or better. Then buy your consumer luxuries if you wish.
Buy luxuries after your investments perform and do the growth for you. Most people don't do this.

I like the saying that goes along the lines of: "you can count the seeds that are in an apple but no one can tell you how many apples will come from an apple seed"

 

sounds like sour grapes that the people have been buying lotto tickets and never won anythng

so if someone puts $3 into a pokies once a week on the way home from work, does that make them a loser too?

 

If they can stop at $3... other people keep feeding money in... end up in a terrible situation.