Use a Lottery Simulator to Play the Lotto and Save a Dollar

Wondering what your odds are of winning a lottery such as the the mega millions? The quick answer obviously, is to simply read the odds revealed in print, but reading the odds doesn't stop most people from playing, as they hope they just might be 'the lucky one'! Would you like to compare investing a dollar a day, rather than playing the lotto? You've come to the right place to do that comparison :)

If you really want to experience the losses from playing a lottery, without any money out of your pocket, you can pretend to play the lottery for free with a simulator, like the Mega Millions Simulator. Taking it a step further, you can save the $1.00 each day you would have normally played a $1.00 lottery ticket, and calculate how much that can add up over time. It may not seem like much, but the time value of money does add up as more time goes by!

Just how much is a dollar worth over time? For starters, let's assume an interest rate of only 3% on the money (compounded interest), which is roughly that of the average inflation rate in the USA over the last 30 years. Then we'll do a calculation at a higher rate of return on $1.00 a day at 8% compounded interest. Let's also assume you saved $1.00 a day for 365 days of the year, rather than playing the lottery daily. Here's the results:

Saving $1.00 a day with 3% compounded interest rate:

1 Year: $375.95
3 Years: $1,162.02
5 Years: $1,995.97
7 Years: $2,880.70
10 Years: $4,309.85
15 Years: $6,992.26
20 Years: $10,101.92
25 Years: $13,706.86
30 Years: $17,885.98
35 Years: $22,730.72

Saving $1.00 a day with 8% compounded interest rate:

1 Year: $394.20
3 Years: $1,279.73
5 Years: $2,312.61
7 Years: $3,517.37
10 Years: $5,710.60
15 Years: $10,703.36
20 Years: $18,039.37
25 Years: $28,818.36
30 Years: $44,656.24
35 Years: $67,927.28

Now that you have seen the potential growth on only $1.00 a day, can you really afford to play the lottery when the odds are so stacked against you? If not, then play the Mega Millions Simulator for free, to at least get your craving to play the lottery out of your system - lol.

Thanks to one of my readers Kyle for his suggestion, which inspired this blog post. This is what he wrote, which also provides you with the link to the Mega Millions Simulator too!

Thought you'd like to see this site... http://www.megamillionssimulator.com It lets you simulate playing the lottery for YEARS, and the TRUE chances you have. Perhaps you could write an article outlining the difference between playing this for a year ($365) or investing a dollar a day into a 1% savings account (typical going rate). Thanks and keep up the great work! My wife and I both love your site! Kyle

Thanks Kyle for writing in your suggestion! One last clarification for my readers. The above calculations are done assuming a lump sum of $365.00 a year invested, rather than $1.00 a day. This does result in a bit of a difference in calculations, but you get the idea.