BUSINESS & ECONOMY

Powerball is fun, but here are 3 better ways to increase your wealth

Jul 20, 2023, 5:00 AM

A person plays lottery at a store as US Powerball jackpot grand prize grew to a whopping $1 billion...

A person plays lottery at a store as US Powerball jackpot grand prize grew to a whopping $1 billion after no ticket got all six numbers in San Mateo, California, on July 18. Photo credit: Tayfun Coskun/Anadolu Agency/Getty Images

NEW YORK (CNN) — There are zero things wrong with fantasizing about winning Wednesday night’s billion-dollar Powerball jackpot drawing.

And dropping $5 to $10 to buy lottery tickets or scratch-offs on occasion can be considered entertainment spending. So, by all means, enjoy if that’s what you like.

But, given everyone’s dreadfully poor odds of winning big — you have a better chance of being struck by lightning — spending hundreds, if not thousands, of dollars a year in hopes of becoming a fast millionaire is a little like setting your cash on fire.

Yet Americans spent nearly $108 billion on lottery tickets last year, according to the North American Association of State and Provincial Lotteries.

If your real goal is to improve your financial situation and enjoy your life more, here are a few easy ways to do that with the same amount of money you spend playing your numbers — but with a guaranteed return:

Create your own fun fund

Let’s be real. If you’re willing to spend hundreds of bucks on lottery tickets, scratch-offs and other games of chance, you may not be psyched to redirect that money into a retirement fund, since the payoff may be decades from now.

If that’s the case for you, why not spend most of your lottery money on experiences you know you like doing now.

“Simply enjoy the money. Put it in a ‘fun’ fund. To go out to a fancy dinner or go on a vacation,” said personal finance educator Tiffany Aliche, founder of TheBudgetnista.com and the Live Richer Academy. “If that money is going to be gone anyway, I’d rather you have lovely experiences. Let it be gone in a way that holistically enriches your life.”

Give yourself a raise

If you’re carrying credit card debt, one of the best ways to leave yourself with more money is to pay off, or at least substantially pay down, your highest-interest debt. And — reality check — all credit card debt is expensive today, since rates are at record highs.

So, redirecting most of your lottery-spending dollars toward that end may improve your life markedly by relieving you of some financial strain.

“You’ll have more money to spend on what you enjoy,” Aliche said. Or, even if it’s not something you enjoy per se, it can help you pay for what you need, like housing.

Make money off your lottery money

Since your chances of winning the big jackpot are so low — think 1 in 292 million — why not put most of what you usually spend on the lottery into an online high-yield savings account instead, many of which are paying between 4.5% and 5% interest?

Think of it this way: Let’s say you spend $35 a week on lottery tickets ($1,820 a year). And, all in, maybe you win $100 over the course of a year. That means you’re out $1,720.

If instead you had banked that $1,820 at 5%, you’d have more than $1,900 on hand instead.

High-yield accounts at FDIC-insured online banks let you park money you can tap any time you need it. And when you see your balance grow through regular, automated deposits, you might grow fond of the habit.

That, in turn, will put you in a better position financially, whatever your goals.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Business & Economy

Hiring sign is displayed at a health service center in Chicago, Tuesday, Jan. 21, 2025....

Paul Wiseman, Associated Press

US employers added just 143,000 jobs last month, jobless rate slips to 4% to start the year

WASHINGTON (AP) — U.S. employers added just 143,000 jobs last month, but the jobless rate slipped to 4% to start 2025 and the government revised November and December payrolls higher. The first job report of Donald Trump’s second presidency suggested that he inherited a labor market that is solid but unspectacular. Economists had expected about […]

4 hours ago

FILE - A Chevron logo is shown at a gas station in San Francisco, Oct. 23, 2023. Gas prices in Utah...

Alton Barnhart

Utah gas prices increased by two cents amid tariff concerns

Utah gas prices have ticked up from last week due to the threat of tariffs, according to the Energy Information Administration. 

5 hours ago

FILE - U.S. President Donald Trump, left, and Canadian Prime Minister Justin Trudeau talk prior to ...

Mariah Maynes

How will Trump tariffs impact consumers? It depends, but here are estimates

Economists agree that Trump tariffs could have consequences for the economy and American wallets.

2 days ago

The Food Justice Coalition cleared its calendar on Monday to support the nationwide protest of Pres...

Shelby Lofton, KSL TV

Salt Lake businesses, organizations feel impact of ‘Day Without Immigrants’ closures

Businesses cleared their calendars to support the nationwide protest of President Trump’s crackdown on undocumented immigrants in the country.

3 days ago

This image shows a chicken coop and garden at the home of Sarah Penny in Knoxville, Tenn., in May 2...

Associated Press

Soaring egg prices are piquing interest in backyard chickens

Thinking about backyard chickens as egg prices soar? Think hard, especially in light of the bird flu outbreak.

3 days ago

FILE – U.S. agriculture could be impacted heavily during a trade war, as it did in 2018-19. (KSL ...

MIKE ANDERSON

Economist: Effects of 2018-19 trade war still linger, shows what to expect from another trade war with China

Though many of us might have forgotten about it, the impacts of a trade war with China in 2018 and 2019 still linger in Utah.

3 days ago

Sponsored Articles

Full speed through the snow. A man on skis is pulled by his through the snow at full gallop Skijori...

Bear Lake Convention and Visitors Bureau

Get ready for an unforgettable skijoring adventure in Bear Lake!

“Skijoring the Bear” takes place this year on February 21-22 in Garden City, Utah.

the bedroom in a geodesic dome shows the night sky...

Clear Sky Resorts Bryce Canyon

Your front row to an extraordinary cosmos show

As America's first glass dome stargazing resort, Clear Sky Resorts Bryce Canyon is one of the world’s most unique and spectacular places to stay.

2 people huddled up in a blanket and warm clothes sipping hot chocolate...

Bear Lake Convention & Visitors Bureau

The best ways to spend your Christmas vacation in Bear Lake

If you're dreaming of a white Christmas this year, Bear Lake should definitely be on your radar. Read this guide for more!

big crowd of people under holiday lights in an outdoor market...

Western Nut

Our favorite family Christmas activities in Utah

We gathered up a list of our favorite activities, movies, and treats to try this holiday season that the whole family can enjoy.

an IT tech looks at a laptop in front of a server network...

Comcast Business

Tips to protect yourself from phishing attacks

Check out this resource from Comcast Business to learn more about phishing attacks and how to protect yourself from becoming a victim of one.

A surprise gift, wrapped and ready to bring holiday cheer! Whether for Christmas, a birthday, or an...

Western Nut

10 Holiday Gift Ideas to cover everyone on your list

This guide is for you if you need holiday gift ideas that will make a lasting impression. 

Powerball is fun, but here are 3 better ways to increase your wealth