Understanding Finance – Investing in the lottery

the lotteryThe lottery is statistically a bad investment. The expected value of your return is always lower than the amount you’ll pay for tickets. Worst of all, much of the money you put in goes into school systems.

But what if this weren’t the case? What if you could ensure that you could make millions on each dollar you invest? Well, there is a way to do this, and it’s actually quite simple. The answer: used lottery tickets.

Buying used lottery tickets is the sure-fire way to control the rate of return on your investment. When you go into a 7/11 and buy a lottery ticket, you’re placing a big bet where the odds are against you. When you buy a used lottery ticket, you can do research ahead of time to determine whether the ticket is a winner. Here’s what to do:

  1. Look for tickets. You can do a simple search on sites such as eBay, craigslist, or FindUsedLottoTickets.com.
  2. Look up the lotto number and date. This is the important part. As your browsing listings on the web site, be sure to do your research and find out whether the ticket is a winner. If the ticket did not win for the date it was issued, you should likely not buy it.
  3. Calculate the value of the ticket. When deciding how much you’re willing to pay for the ticket, you’ll want to know how much you’ll net from the ticket. Offer to pay any amount less than your net revenue after taxes.
  4. Execute. Once you’ve agreed on a price that would give you a return that you’re satisfied with, execute on the deal. Figure out payment and delivery details. To gain favor for future used lottery ticket transactions, be sure to provide the seller with good ratings on the web site.

When calculating the value of the used lottery ticket, be sure to factor in the opportunity cost of calculating the value of the used lottery ticket. You may find this to be difficult as it is infinitely recursive (or is it???). Just do your best. In the end, it’ll make for a great investment.

Thanks for reading.

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