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Less Drama, More Money: Avoid The Lottery and Get Rich Slowly

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Over at Get Rich Slowly, J.D Roth discusses the ignorance and futility of playing the lottery, and quotes a recent Wired article:

While approximately half of Americans buy at least one lottery ticket at some point, the vast majority of tickets are purchased by about 20 percent of the population. These high-frequency players tend to be poor and uneducated, which is why critics refer to lotteries as a regressive tax. (In a 2006 survey, 30 percent of people without a high school degree said that playing the lottery was a wealth-building strategy.) On average, households that make less than $12,400 a year spend 5 percent of their income on lotteries—a source of hope for just a few bucks a throw.

Buying a lottery ticket on rare occasions might be harmless fun. But playing frequently is just plain stupid. You’d be far better off to invest that money in virtually anything else. That ten or twenty dollars a month may seem paltry, but it can add up. Take that money and make better bets: stocks, bonds,  mutual funds, or even just savings accounts and CDs. Not only will you actually have something left—unlike the money you spent on losing lottery tickets— you’ll soon have more than you started with.

Read the whole article, and visit Get Rich Slowly from time-to-time to help keep yourself in the right financial mindset.

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Written by breckfield

March 30, 2011 at 8:41 am

Posted in finance

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The Power of Patience

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Patience doesn’t guarantee success, but it dramatically increases the odds.

–J.D. Roth

At Get Rich Slowly, J.D. Roth writes about the power of patience:

When I was young, I had no patience. I wanted everything, and I wanted it now. No wonder, then, that I found myself with over $20,000 in credit-card debt just a few years out of college. I was spending to obtain a lifestyle that I wouldn’t be able to afford until I was older. Much older…

This impatience is costly. It leads to debt, and it starts a cycle of excessive consumption and lifestyle inflation…

Patience leads to wealth and happiness. (It leads to each independently, not as a package.) But it can be tough to practice patience if you’re plugged into television, radio, and the internet. Our society doesn’t believe in patience. Our society is all about Now.

Read the whole thing.

Written by breckfield

March 8, 2011 at 8:28 am

Posted in finance

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