How Much Would You Spend on Lottery Tickets?

powerball winnings

Everyone dreams about what they would do if they won the lottery. The focus is always on the money coming in, not the money going out. When you purchase the tickets each week or month, are you deciding on a budget beforehand? Or do you just buy what you can or want and leave it at that? Do your own research project and keep track of how much you spend. You may be amazed at the amount going out, with the slight chance of a prize.

Big Spenders

According to a study by LendEDU, Massachusetts is the home to the biggest spenders. They, on average, spend close to eight hundred a year on lottery tickets. Think about all you could purchase with that amount of money. One reason could be that the lottery fund distributes money to organizations that help the community. So even if they do not win, they know that the excess income will go to good causes. They are also taxed five percent on the winnings, which is lower than other states.

Probability

odds

Those states with higher average amounts could be trying to achieve a higher probability of winning. The issue is they need to spend more than the average person. If the average person is spending eight hundred dollars on tickets, you would need to spend more to get better odds. This could mean even doubling the amount spending up to sixteen hundred dollars a year on tickets. That is a lot of money to be paying when the outcome is still a matter of luck. While the more tickets, the better the odds, it is still risky. Knowing the average amount spent in your state is the first step of using the probability strategy. If you are going to go big, make sure it is big enough to make a difference.

Cheapskates

North Dakota is the cheapest state other than those that do not have a lottery. The average person in North Dakota spends around thirty-five dollars a year on tickets. Their ticket sales have increased since the LendEDU study but are not enough to compete with the top spending states. Their winnings are even taxed less than the top spending states. It is most likely a matter of the population that makes the most significant difference in states like North Dakota. Or possibly those from North Dakota are not big gamblers and would instead save their money.

Risk Vs. Reward

lottery gift

Every time you gamble, you risk not getting a reward. This is half the rush of buying a ticket. You get to wait with anticipation for the outcome. There is some happiness found by those who routinely purchase in its tradition. In contrast, all who end up with the reward will tell you that they are happy with the results of buying tickets. Those that lose always seem to come back. There must be enjoyment in the chase for the big prize, playing the risk and reward scenario over and over again.