You Are More Likely to Become This Than Win The Lottery

I think most of us can say we’ve paid our fair share of taxes. Whether from federal taxes, state/provincial taxes, property taxes, sales taxes, payroll taxes, and even government fees that aren’t “considered taxes.” But we all know the truth about those fees. They are taxes!

The truth is the government doesn’t create assets, it creates liabilities meaning outside of taxes the government doesn’t have a revenue source. More on that another time.

Don’t get me wrong, I’m not against paying taxes. Paying taxes means that I’m a contributing member to society. Not because of the taxes I pay, but because paying taxes means that my business has gone into the marketplace and served customers.

Like any good citizen of this glorious nation we live in, I use every advantage I can to reduce and pay the least amount of taxes. Let’s be honest here, who is the best person to manage your money? The government, who is well known for managing money (Insert sarcastic emoji here) or you? if you actually pay taxes then it’s most likely you!

So in an effort to help you pay fewer taxes let’s talk about the one tax strategy that is guaranteed to keep more money in your pocket.

The Lottery

According to expandedramblings.com, you have a 1 in 292 million chance of winning the lottery. That’s a big number! and research shows that when odds get this massive, our brains have a hard time calculating the numbers. So, let’s put this into perspective. You have better odds of:

Being struck by lighting this year (1 in 1,000,000)

Becoming a pro athlete (1 in 22,000)

Being killed in a vending machine accident (1 in 12 million).

Becoming US president (1 in 10 million)

Becoming a Movie Star (1 in 1,505,000)

Winning an Olympic gold medal (1 in 662,000) — yes I have a chance!

Finding out your child is a genius (1 to 250) — LOL I love this one!

Does being the U.S president or becoming a pro athlete seem out of reach for you? Ya, so is winning the lottery!

The History of the Lottery — Government Ruled Gambling

205- 187 B.C. is the earliest know evidence of the lottery and the earliest known area is in China. The game played at the time was KENO and is still played in some casinos today.

Lottery tickets first showed up around 10 BC during Augusta Caesar’s reign in Rome. Like in China, Augusta Caesar needed a little more money to fix up infrastructure. So “The government” introduced yet another tax, the lottery. What’s different about this lottery is the prizes didn’t include cash. Winners got material goods and household items. Classy Augusta. give the people what they’ve already paid for with their taxes. As you can guess, most of the funding, much like today, went into government funding.

And much like today, kings, rulers, and dictators knew that the common folk didn’t want to pay more taxes. But they sure liked to gamble. So instead of raising taxes, they made gambling legal. Growing the government coffers and eliminating yours.

Did you know that much of America was built through the lottery and today most places in the world have legalized gambling? So what’s the harm?

A Tax on The Poor — It’s proven!

Research shows that low-income households spend a higher percentage of their income on lotteries than wealthier households. Households with less than $10,00 in income tend to spend around $600 a year on the lottery, and this isn’t by accident!

According to Vox.com and other studies, people in wealthy neighborhoods don’t buy lottery tickets — at least not for the daily games. it’s the poor neighbourhoods who play much more frequently. So like any good marketer you target the market who will buy your product right? Unfortunately in this case, even if it’s unethical. Research shows that lottery ads are being targeted to lower income zip codes The Lottery preys on people in financial crises.

During the Great Recession, more than half the states in the US saw growth in lottery sales. Of the 42 states with lotteries, 25 saw a spike in instant and daily games.

Why Doesn’t the Government Makes Better Legislation?

Rarely am I a fan of government bureaucracy and legislation. I’m beleive in the free market! However, seeing the facts, one could only think that lottery system is designed to greatly benefit the government and not the common folk. In Ireland, they have a system called a play bond. Basically, players can be entered into a draw simply;y by loaning the government money. And at any time they can withdraw their money back, should they wish to do so.

Cashing Rainbows?

Studies also show that 70% of lottery winners are broke again within 7 years. Wow! And, according to the Hedonic Adaption Theory, people will return to their level of happiness regardless of what happens to them, good or bad. So even if you win the lottery, if you’re already a relatively happy person, it won’t change. If you’re relatively unhappy, winning the lottery can exacerbate the problem. Think of it this way. It’s not how much we have but how much we enjoy that makes us happy.

A Better Indication of Overall Happiness.

If you think winning the lottery will make is your one way ticket to happiness, think again. A study done by Barbara Fredrickson and colleagues, showed that a stream of positive emotions can be achieved through loving-kindness meditation. (LKM) LKM is a form of meditation that provokes and deepens feelings of warmth and care for self and others.

Is It Wrong to Play the Lottery?

Legally no. But morally? Well, that depends. If the stats are true then the lottery is an exploration tool that the government uses on those who are poor, marginalized and mathematically illiterate in our society. Essentially, the lottery is a tax on the poor!

Live Your Lotto Dream!

Now don’t get me wrong, it’s not wrong, dreaming about what you could do if you won isn’t bad. In fact, those dreams are a good indication of your passions and desires in this life. Don’t wait! Working at a job you don’t love hoping you will one day win the next million isn’t a strategy. Don’t let the lottery dictate to you what you can or can’t achieve. Take those dreams and passions and go out and make them happen! Bill Gates once said most people overestimate what they can accomplish in a day and underestimate what they can do in 10 years. Start working towards your goals today and you’d be surprised how much you can accomplish in a lifetime. You will feel like you won the lottery without putting a dime in the government’s hands!

Financial Coach, speaker and personal finance blogger. Mike’s goal is to reach as many people as possible and teach the financial principles that helped him and his wife, Steph, get on a financial game plan, beat debt for good and to fully live their best financial lives today.

Mike is a personal finance coach to young families and businesses across North America. Are you looking to get on a plan, beat debt and build wealth? Visit: www.MoneyCoachMike.com for free resources that will help you live your best financial life today!