Accountants, Financial Controllers and Business Owners should be the busiest people in Australia this week. Budgets, tax receipts, reports and last minute tax deductible purchases all taking centre stage as the financial year ends. But spare a thought for one group of workers who I believe will be busier than anyone this week. The Lottery ticket agent.
Yes, these poor lotto and newsagent attendants will be having the week from hell. $80 million OzLotto, $40 million Powerball, $77 million Mega $5 lottery and that’s not including all the other normal draws. These poor souls will be handing out tickets quicker than a Sydney parking officer.
With so much money being gambled on a slight chance of winning, let’s compare this to gambling with what we already have.
People are happy to spend on average about $20 per week on lottery tickets. Around 40% of Australians will buy some sort of lotto/scratchy ticket in any 3 month period. I am not even going to consider pokie machines, they are a whole topic of their own. This may be a bit of ‘fun’ and the chance to win your way to happiness.
Lets look alternatively at what you do already have. It maybe a house, car, job, other assets or investments. These are not won in a lottery, these are what you have worked hard to earn. But rather than a chance to win these, there is a chance you could lose them. Death, disability, sickness or being unable to work could cause you to lose part or all of these. Your assets, coupled with your ability to earn a wage in the future, could well add up to a lot more than the $1 million jackpot which may be on offer on a standard lottery.
Statistics prove that you are many times more likely to claim on an insurance policy than win a substantial lottery prize. So, where is your $20 per week best spent? On lottery tickets, where you may have a 1:12,00,000 chance of making it big? Or do you spend it on insurance, and protect the wealth you have already built up and your earning potential?
Ideally you could do both if you wish, but for some that is not always an option. The question is: are you willing to gamble the wealth you want to have at the expense of the wealth you do?
You need to consider with your financial planner (or adviser), your objectives, financial situation and your particular needs prior to making an investment decision. Sensibly Pty Ltd and its authorised representatives (or credit representatives) do not accept liability for any errors or omissions of information supplied on this website
Nick Shanley, Steve May, Luke Styles and Shanley Financial Planning T/A Steve May Financial Services are Authorised Representatives / Corporate Authorised Representative of Sensibly Pty Ltd, AFSL 533923. Please refer to our website at www.stevemayfs.com.au to reference our Financial Services Guides.
