The luck of the draw is exciting for many people. It’s exciting to imagine yourself winning a large sum of money that can change your life. The prospect of paying down debt and making a large purchase you have always wanted is enough to make most head towards the lottery. While its allure is fun and exciting, the luck of the draw is not in your favor. In fact, there are many things to do with your money instead of buying lottery tickets.
The first thing you should do with your extra lottery ticket money is to save. I’m not talking about just rounding up the change with your bank. I mean putting that money somewhere that has a higher earning potential. You can put that money into a high-interest savings account that will generate you over a 1% return on your contributions. You can save money as a part of your emergency fund or even for a bigger purchase in the future.
If you already contribute to high-interest savings, simple investments can be the next step. For people who want to contribute small amounts of money, apps like Acorns and Stash are for you. Acorns pick investments for you based on your age, income, and risk tolerance. It’s a hands off platform that requires a monthly contribution as low as $5 per month, and you can round up the change from every purchase you make. For every $5 in round-ups, the platform will invest it for you into a mix of stocks, bonds, and mutual funds of their choosing. If your looking for a more hands-on approach Stash is for you. Stash allows you to invest as little as one cent into individual companies and ETFs of your choosing. You can even save for your children’s future in a custodial account and they have parties.
Invest in Education
Lastly, you can invest in education. I do not mean going back to school, I mean using your lottery ticket money to pick up books and taking online educational courses. You can elevate your skills in your current career or a hobby that will help you in the future or right now.
There are a number of things to do with your money instead of buying lottery tickets. Choose one that will increase your knowledge and funds!
Shatel Huntley has a Bachelor’s degree in Criminal Justice from Georgia State University. In her spare time, she works with special needs adults and travels the world. Her interests include traveling to off the beaten path destinations, shopping, couponing, and saving.