But tell that to my mother.
She thought a lottery ticket is her only key to retirement. Thank goodness we’re working her out of that mindset.
The scary thing is that there are many people who also believe that!
20 per cent are counting on CPP, a lottery win or an inheritance, instead of contributing to an RSP.
And here is more evidence!
In a 1999 survey by the Consumer Federation of America and financial services firm Primerica, 40% of Americans with incomes between $25,000 and $35,000 — and nearly one-half of respondents with an income of $15,000 to $25,000 — thought winning the lottery would give them their retirement nest egg. Overall, 27% of respondents said that their best chance to gain $500,000 in their lifetime is via a sweepstakes or lottery win, the survey said. – MSN Money
Putting all your eggs into one random, once-in-a-billion basket is not the smartest plan.
If you want to be sure that your future is secure, it’s pretty simple:
Just save the money for it, yourself.
Even $100/month can be enough if your expenses are low and you are being reasonable with your expectations.
The key is just to start saving and to not rely on anyone — government, family, friends, lottery winnings. All that can be considered a bonus, but not a plan.
But maybe what you thought would just sell for $10 on eBay might end up netting you a cool $66,100!
That smiling white-haired guy with the wine glass is Bob, a Navy doctor who put his watch for sale on eBay for $9.95. He got it cheap at a Navy Exchange fifty-two years ago. The final auction price: $66,100.
The reason isn’t that Bob and his watch got to party with Superman (yes, that’s Christoper Reeve). It’s a lot better than that.
Soon after posting it in eBay, the price skyrocketed to $30,000. After talking with his son, they found out that the watch was a collector’s item coveted by watch nutters all over the world: The Rolex Submariner Ref 5510, nicknamed the Bond Rolex because Sean Connery wore the same model in Dr. No, Goldfinger and Thunderball.
Just a girl trying to find a balance between being a Shopaholic and a Saver.
I cleared $60,000 in 18 months earning $65,000 gross/year.
Now I am self-employed, and you can read more about 
my favourite line on the lottery:
"The lottery is a tax on the statistically challenged." Changes of winning are just intinitesimal….
There\’s a much ruder version of that line, but I chose not to use it.
now you have me curious..and googling… wonder what that other version is….
Oh people say that lotteries are a tax on the stupid.
Question: my inlaws scrape by week to week and have let their insurance go. My mother inlaw is 51, healthy and fit to work – but refuses to, since she "hates to work". She expects to be "looked after" (!!). They have no retirement fund, and we have given them good advice about insurance, saving for retirement, working hard while they are still young. They refuse to listen to any of it. I'm afraid we'll end up footing some of their bills because of their negligence.
Do you have any advice?
Thank you. And I love your blog. Michelle.
Yeah well my dad was like this, he would buy lottery tickets instead of holding down a job. I have no desire to spend any money on tickets, they're stupid imo. I think I gambled like 3 times in Las Vegas and that's it. I have no desire for that type of junk. I'm not anti-gambling, if people want to do it, I think its great that we have places like LV I just choose not to participate in it. Yeah I have a bias against lottto tickets.
Its just a personal choice. People are adults, that being said, I'm not counting on the lottery for a retirement, or social security. I think that a lot of people could save for retirement if they wanted to. But at first 500k seems an overwhelming number to many people. They don't know how they will reach that point. But I think its a bit like the turtle from the story turtle and hare by Aesop. Slow and steady….
I agree with slow and steady. My parents want it all, and now. But what\’s funny is the past decades of buying tickets each week (more than one I might add), would have been half a million by now had they invested the money instead.
Winning the lottery is just so much more dreamy than saving $100 a week. My grandmother didn't do the lottery (I don't think), but she did rely on the bank of the video poker machines.
Oh video poker. My mom likes roulette 🙂 My dad is the slot machine guy
I have never played the lottery, I have always said that when I play, I will win.
Great story about the watch, but i am not sure if anything is better than partying with Superman.
Only thing better than partying with Superman is to chill with Wonder Woman.
Its a fact though in Canada, they thought the people who would play the lotto would be old people (with time and money), that's how it was sold to Canadians. As they have found out the largest consumer are ppl in the poorest income group. The reason being is, it gives people hope, even when there is no hope to give. The worst part is all that money they spend on lotto tickets could have gone into savings to help make them wealthy over time.
Exactly 🙁
I tell my parents it\’s a waste of money.
My in-laws (who are already retired) spend a fortune on the lottery while their house falls in around them. It's madness from where I sit, but it's a well-entrenched habit they won't break. Their reasoning-we've been playing the same numbers for 40 years, what if we stop and those numbers come up? Oy!
DH buys a "Cash for Life" scratch ticket whenever he finishes a big project for work. He says he likes to think it could be his last project. if he were to win. Since this is only every couple of months, and it comes out of his fun money, I don't say boo, but I never ever buy them myself. I hate parting with my money to gamble-makes me nuts! I played the slot machines once ($20-and I hated it) and played bingo once (sooooooooo boring!) and never buy lottery tickets unless it's for stocking stuffers for the inlaws.
Once in a while, why not? But every week? Arg. My parents are that.
I have an RSP…and I am more than thrilled, cause my company matches it up to 6% and I get an additional 3%, so total is 15% of my income donated every month, except only 6% comes out of my paycheck 🙂
I LOVE company matches.
OMG, I remember reading that story like 10 years ago. Must have been when it was first reported. I've contributed to about 4 office lotteries in my life but never personally bought a ticket. It appears I'm susceptible to peer pressure. 🙂
*laugh* I\’ve only purchased lottery tickets as PRESENTS to my parents. I gambled ONCE in a my life in a casino and I bought maybe 3 scratch tickets in my life.
Amazing story. I am running to every garage sale and thrift store in a 20 mile radius to find me some golden items!!!
I contribute to my RSP and I buy lotto tickets 1x a week (okay sometimes 2x) but I have a plan set out for when I do it the numbers!!!!
Dude if you find some, you have to share with me 😉 (just kidding)
WTF. I can't believe that many people think the lottery is a viable option. Know what that means? They're playing the lottery! Imagine how muc they could accumulate for retirement if they just SAVED WHAT THEY ARE GAMBLING.
Geez.
Watch story is cool!
My recent post 2011 Spending Plan
Tell me about it. In fact, TELL MY PARENTS PLEASE.
Hey, I sold my Heroscape collection for $400. I thought I was going to give it away to Goodwill, but good thing I checked the price first. score! 🙂
I buy a lotto ticket when the prize goes over $40 Millions or so. Can’t win if you don’t try. heh heh…
It’s not my retirement strategy though.
This is why I can\’t let anything go. It makes me want to sell it just to make some money!
Yup my parents are similar that way…@__@ ~ they don't buy lottery tickets, but keeps taking out a mortgage off their house!
I just put at $100 per month for RRSP for now…as I need the cash for school in a year or two.. some is better than none! 🙂
My recent post Contest!
My parents are the same way. 🙁 Uggggghhhhh.
Cool story about the watch though! I like that he wasn't expecting it.
My recent post What are you trying to do Make all of the money in the world
I love that story!! 🙂 but yes, good lesson in this post. I think we all secretly hope the lotto favors us, but you gotta hope for the best and prepare for the worst…
Thanks 🙂