It Just Doesn't Work

I wanted to take a step away from the market for post here and talk about something else that I think affects all of us in one way or the other. The issue that I want to address is the lottery. It never ceases to amaze me how many people rely on the lottery as THE way to become rich. This would not really bother me if it were just one idea of many, since the chance is there, but this is usually their only idea. When I ask them if they have any other ideas, they either say "no" or something like, "become a doctor." I am not writing this to down talk these people, for this is never my goal. What I am going to use here is an analogy that I came up with and use to explain why I don't think the lottery will make you rich/financially free.

I have decided that I want to run in an Olympic marathon more than anything else in life. I believe it is my destiny, and without achieving this, I won't ever feel like I gave it my all. Now there are two main routes that I have identified that can get me to my goal. One, I can take part in this program that I walk almost every day. Everyday that I walk, I have the chance to be put in a drawing that will get me to the Olympics, no questions asked. Since I already take part in this program, and it gives me everything I need, this won’t be much harder. I will just have to walk a little bit further everyday. The other option I have is to walk the same amount as I do everyday do provide me with what I need. Then, as soon as I get home, I would go out running. I would run as much as I could, and do this day after day. The only problem with this plan is there is nothing saying that I will get to the Olympics, it just depends on my own determination. The first plan at least gives me the chance, even though I am competing against all of the other walkers in the drawing. I decide to go with plan one. I walk a little more each day to prepare for my marathon, and everyday get entered in the drawing. Occasionally, other people win the drawing and get their chance to run in the Olympics, but I am persistent and keep walking.
Finally, I win! I can’t believe my luck; I am going to the Olympics to run in the marathon. I am feeling good. When the race comes around, I realize one horrible fact, I can’t run that far. I have spent all my time walking to get here, and thus am out of shape for running. All I would have to do is run and finish this race and I would feel complete, but I don’t know how. I am so close but yet so far.

In this analogy, I compare becoming wealthy to running in an Olympic marathon (I do this because everyone has ran at one time or another and thus can relate). I walk (work) everyday to become wealthy. Suddenly, I win the drawing (lottery) and I have a lot of money (get to the Olympics). All I have to do is invest (run) and I am at my goal. The problem is that I have spent all of my time working, and no time learning. I won the lottery, but I didn’t know what to do with my money since I never practiced. So in the end, I returned to where I was. This is why I feel that the lottery is not a good investment idea. Most people who win don’t know what to do, so they end up right where they were before hand. The only difference is they are usually unhappier.

I seem to have better luck explaining this to people when I use this analogy. Feel free to critique it as you wish, and use it as you need.


Good Luck With Everything!

Mark Zimmer