This post was written and sponsored by the Virginia Lottery. I don’t necessarily advocate playing the lottery, but I do play on rare occasion for entertainment. If you do play, please play responsibly and only with money you can afford to lose.
Playing the lottery offers hope for that unexpected windfall, but you probably shouldn’t count on lottery winnings to keep the lights on. If your budget is already in a good place, and you want to spend some of your entertainment money on lottery tickets, then there are some ways to incorporate both the game and any winnings into your regular budget. You never know, you might just win big and keep your budget flush with cash.
Americans spend an average of $223.04 each year per adult citizen on the lottery. That averages out to just over $4.00 a week, a manageable amount for most people’s budgets. There are some smart ways of spending on the lottery which increase your odds of winning and keep you from spending more than you can afford.
Spend Only What You Can Spare
A good rule of thumb for everyone, no matter how large or small their budget, is to allocate funds for entertainment expenses. The lottery should be considered entertainment because it gives you a chance to dream about winning the big jackpot but gives you no guaranteed return on your investment. Set aside the amount you plan to spend each week into your recreational category and use only money from there for tickets. If you find you’re dipping into money set aside for other expenses, it’s time to seek professional counseling to get your gambling under control. Never spend what you can’t afford to lose.
Cash in on Bonuses
You’ll significantly improve your chances if you understand the game you’re playing and the easiest way to get your tickets. For example, if you know you want to spend a set amount per week on Mega Millions, then you can set up an online account for just a $20 deposit and get a $10 bonus. You can then play online at any time and add money from your disposable income to your account.
Understand the Game
State lotteries often release new scratch-off games and some have better odds or higher payouts than others, so figure out where you can get the most bang for your buck. Start your research online, reading the rules of each game and what the various prices are and compare the potential payoff to the cost of buying a ticket. For multi-state lotteries, study the rules and figure out what number combinations might work best. The big jackpot prizes really are just the luck of the draw, but you might have a chance at smaller prizes if you choose the right Powerball or Mega Ball number. A small $10 win puts money back in your budget to purchase additional tickets or for something else fun.
Decide How to Spend Winnings
Make a plan ahead of time for what you’ll do with any money you might win. This prevents you from making a rash decision if you receive a sudden windfall. For example, you might be saving 20 percent for a down payment on your first home so you can avoid PMI insurance and higher interest rates. You might plan in advance that if you wind up with a profit from your lottery play that the extra money will go toward your down payment fund. If you have a plan and suddenly win $10,000 in a scratch-off game, you know exactly where you’ll put your after-tax winnings.
Stay Sane
If you’re lucky enough to win a big lottery worth millions of dollars, most experts recommend you wait a while before making major changes. Figure out how best to invest your money and what you can and can’t afford. While it might be tempting to live like the rich and famous, until you actually have a lot of money it’s difficult to know the best way to spend it.
