With Lotto millionaire would like to become somehow everyone. Well, billionaires maybe excluded. But is getting rich by playing the lottery a realistic goal? Is this possible at all?
My father has played the lottery ever since I can remember. Probably started this as a young man. I remember well how I watched the draws as a child spellbound.
Somehow, though, the six-pointer never really came, even if it looked "close" every now and then. Like my father many people in Germany and elsewhere hope to become a millionaire someday by playing the lottery.
In this country, according to Statista, around 7.3 million Germans (
8.8%) become lottery millionaires. They play regularly and over 21 million (
25.3%) occasionally lotto.
That means that more than one in four Germans plays games now and then. This is impressive. By comparison, according to the Deutsches Aktieninstitut, only around 10.3 million Germans owned lottery shares in 2019 (
16.2%) Shares or equity funds.
If so many people, like my father, are betting on getting rich by playing the lottery, there must be something to it. So I wanted to take a closer look at this now.
Germans not so risk-averse after all when it comes to building up wealth?
When it comes to wealth accumulation, Germans have a reputation for being very conservative. In fact, however, they are not as risk-averse as is often claimed. Build them yet next to bank deposits and real estate especially on Lotto.
You can’t invest your money much riskier than that. The Payout ratio is just once in the lottery 50%. This means that only half of the money paid in goes into the lottery pot. So it’s mainly the state that gets rich from playing the lottery:
- 17% of the lottery income is deducted as lottery tax;
- 23% of revenue goes to support sports, culture, social organizations, environmental protection and monument conservation;
- 12% is spent on sales outlets, distribution partners and running costs.
50% are away with the Lotto right at the beginning once. Let’s be honest, someone who 5% issue surcharges of investment funds excites, high Insurance fees unbearable, about Zero interest Whines or doesn’t like to 1€ execution fee for an ETF savings plan pays, should make around Lotto a giant bow.
A financial investment, with which at the beginning once 50% are fixed away and it is uncertain with the remainder whether you get at all something back – more risk with the fortune structure hardly goes.
1.68 million Germans over 14 nevertheless spend 50,- per month on Lotto. Of these 50€, which are spent monthly, only 25€ go into the lottery pot. The rest is already gone. Why people go along with it? With logic this is no longer really understandable.
Okay. It lures the chance on the large Lotto Jackpot. With the lottery ticket you secure yourself the chance to become a millionaire through lottery. There is no long and expendable way necessary. You become a millionaire overnight.
Rich by playing the lottery – What is the probability of winning the lottery?
Agree. If you don’t play the lottery, you can’t become a millionaire. At least you will not become rich by playing the lottery then. But how high is the probability of winning the lottery really??
No rivets? Rich by lotto is unfortunately an illusion.
Not so great at first sight. Let’s look at the probability of drawing a blank in the simple 6 out of 49. For this you need 0, 1 or 2 correct numbers. With 0 correct it amounts to 43.6%, with 1 correct 41.3% and with 2 correct 13.2%. Together, that’s about 98, 1%.
This means that the remaining winning probabilities for 3, 4, 5 or 6 correct numbers add up to 1.86%.
Fortunately, super numbers have been introduced. With it lie the chances of winning anything at all are 3.125%, thus with 1:31. The lowest two winning classes (2 correct + super number and 3 correct), already make up 2.87%. Here there are then approx. 5-10 euros to win.
The probability that you will hit the 6 out of 49 + super number is 0.00000072%. The chance of hitting the lotto jackpot, i.e. 6 correct numbers, is a little less than 1 in 140 million.
The probability of winning 3 numbers with a super number is now only 0.18%, or. 1 to 566.6. And also here theoretically just a little bit more than 20€ are waving.
6 correct numbers without a bonus number can be won in Germany with a probability of 0.0000064% or. 1 to well reach 15.5 million. Easy. You would only need to fill out 15.5 million lottery tickets to have a realistic chance of winning a 6.
Stupid only that a lottery tip costs exactly one euro. So the necessary stake for a realistic chance is 15.5 million for a simple 6, respectively. 140 million euros for the lottery jackpot
Who plays long enough, will become a lotto millionaire?
Well if you play long enough, you have to win sometime, or not? Become a millionaire in 10 years by playing the lottery?
With the average of 50 euros per month that 1.68 million Germans over the age of 14 spend on playing the lottery every year, the chances of winning are rather slim.
It is possible if you invest enough or live long enough. Then you can become theoretically by Lotto millionaire. The probability says that you have deposited significantly more than you will win afterwards.
The lotto prices will surely rise and therefore you probably better calculate 2% inflation with one. With this stake come in the period from 14 to 67 years a little over 55.000 Euro together. You would need a lot of luck to hit the jackpot.
Conclusion: Even if you had 15.5 million investment capital at your disposal – and thus a good chance of a 6 – this would make little sense. First of all, if you are successful, you will probably have much less money than before. Secondly, it is not even certain whether you will gain anything at all in spite of your efforts. You can still have bad luck and go completely blank.
Are there alternatives to playing the lottery?
Wealth millionaire vs. Lotto millionaire
You will have to give up the dream of becoming a millionaire with the lottery. Or not? Can’t you somehow become a millionaire through the lottery after all? Yes, you can. As Wealth millionaire.
Hm. You do not understand now? Getting rich by playing the lottery was the topic, wasn’t it?? Yes, good. That is basically what it is all about. The approach of becoming a fortune millionaire is all about playing the lottery.
The approach is simply called, with without lotto Become a millionaire. What if there is a way to become a wealth millionaire with 50€ per month?. You do not believe that?
No. I am not talking about Bitcoin or any other surefire investment. I am talking about an investment form that is well known, well researched and has a manageable risk of loss, at least for a long-term investment?
Is the lottery stake money that you do not need?
You can write off your 50€ monthly from playing the lottery. It is unrealistic to believe that you will hit the lottery jackpot. Actually, you know that too.
No one – at least if they are sufficiently intelligent – plans a lottery win firmly into their retirement plan. That is, money that you use to play the lottery is money that you have already said goodbye to inside.
Lotto is a gamble. You are paying here for the vague hope that you might hit the lottery jackpot after all. The 50€ per month is obviously money that you don’t need. Otherwise you would not invest it in lottery tickets.
Money you don’t need? What reminds me? Exactly. When it comes to investing in shares, it is said again and again that you should only take money that you do not need anymore or at least not for a very long time.
An alternative – Wealth millionaire with stock ETFs?
That fits pretty well. The 50€ for the lottery tickets you can easily invest monthly in stocks or bonds. Invest in stock ETFs. Can you become a wealth millionaire with it?
Let’s take a look at what can be achieved with a monthly investment of 50€. Let’s assume you invest in a broad, globally diversified index ETF like the Vanguard FTSE All-World. This is a one-ETF portfolio that is very easy to implement.
If you look at the historical returns, annual average returns of 7.5% are quite possible over a period of 53 years.
The following table shows you what 50€ monthly (+ 2% per year) becomes in 53 years:
So with without lotto Become a millionaire?
Okay. You will clearly miss the million. Is the wish "to become a millionaire with the lottery" just as much an illusion as the alternative "with the lottery"? without lottery become a millionaire"?
Well. There is already a difference here. Playing the lottery you will probably not have 0€ in the end, but most likely not even close to half a million.
By the way 6 correct numbers (without super number) theoretically ca. 574.596,5 €. The scarce half million is there now not so far under it. It corresponds thus nearly to a 6er in the Lotto, only with a much higher probability to actually get it.
Perhaps you could also be satisfied with half a million. Rich is rich. The sum of 1 million as a measure of wealth is an illusion anyway, as I wrote earlier in my article about wealth.
I am somewhat skeptical about statistics. Because according to statistics, a millionaire and a poor guy each have half a million."
Franklin D. Roosevelt
You see in the table but also very nice, how the compound interest works. It has only a small impact at the beginning, but in the end it develops its full power. Towards the end, the invested capital almost increases tenfold.
Admittedly taxes are left out of the calculation above. The treasury will certainly claim its mite here too. Costs are also not included here, these are with an investment in ETFs& Co but also increasingly negligible.
Becoming a Fortune Millionaire – Can it still work out with the million?
The 50€ per month, the you instead of playing the lottery invests would like to tell you about the 53 years not Become a Fortune Millionaire. Nevertheless, you are to the Target of half a million already very close.
Hopefully your journey does not end here. Let’s assume you leave the money on after you retire. For the sake of simplicity, we’ll continue to assume 7.5% average return per year for annual returns.
Of course, when you retire you will also need some money to fill the pension gap. You take for it flexibly 4% per year of the respective depot value.
In real life, of course, the deposit value fluctuates from year to year. The return is not linear, unlike in the calculation example. The order of the actual return fluctuates and it alternates years with losses and profits.
This can have a big impact on the overall return (keyword: Sequence of Return Risk). The calculation here therefore only serves as an illustration. To make it to the million, you need some real luck now.
What would probably happen to your half a million in the period after retirement?. The following table will show you:
Which you can see very nicely here: You can do it and with without lottery Become a millionaire – only with 50€ monthly. In the example here you have to pay at least 77 years old (and with 14 start). Feasible.
Again and again I read in forums that people with a savings rate of 50€ per month should not start saving at all. In fact, such statements annoy me. Rhinos my ass. The above overview should make it clear why even 50€ a month can have quite an effect.
What it takes is time and perseverance. The constant drop wears away the stone very well. But imagine now what you could achieve with 100€ instead of 50.
In addition, you do not know how it continues after the initial 50 € per month. If someone gets a taste for it, he/she may very well increase the savings rate over time.
The important thing is that you start – and preferably as early as possible. Of course, a teenager, like in this example, can’t invest by himself at the age of 14. There is a youth depot that parents have to create. Our son has been on the savings plan since he was 5.
You never know what the kids are going to do, but when I look at what compound interest can do, I sincerely hope my son (a) stops playing the lottery and (b) continues his savings plan by himself when he’s 18…
Conclusion – Becoming a millionaire with or without the lottery
With a stake 50€ a month you can become a millionaire with lotto. The probability is small, but given. If you invest the same amount on the other hand but the chance to become a millionaire without the lottery is much higher. All you need is time and perseverance.
Millionaire with lotto – lotto advertising is everywhere
Even if you miss the million with an investment of 50€ per month in a broadly diversified index ETF, you are likely to end up with more than playing the lottery. Half a million would be quite a considerable sum.
On the one hand, stocks are demonized in this country. On the other hand, a lot of money is invested in really unsafe things like lotto. It’s not really comprehensible to me.
With lotto 50% of the invested money is gone at the beginning. It is uncertain whether you will ever see a substantial part of the rest again. That would be too much risk for me.
If you look at shares, i.e. share certificates in companies, in comparison to lottery tickets, the risk of shares suddenly appears to be very low. In direct comparison even penny stocks look much more conservative than Lotto.
Imagine that all Germans would start to invest the money they spend on lotto in solid stock ETFs. With the same financial investment you can reach the goal of becoming a millionaire with a much higher probability.
Getting rich with lottery can work: You just have to invest the average amount of money spent on lotto in Germany in something meaningful instead of lotto.
If you even double or further increase the monthly savings rate, the probability of becoming a millionaire increases rapidly.
Most Germans save more than 50€ per month. On average they save about 10% of their income. So it would simply be long enough if the Germans would stop being stock muffleurs.
If they invested a portion of their savings in equity securities using ETFs, there would be many wealth millionaires in this country. This would not be a question of luck, but simple mathematics. I would like you to do it from the bottom of my heart.
Do you still play the lottery or do you already invest??
I am already looking forward to your comments and suggestions! Feel free to leave a short message and tell me what you think of the article. Besides praise and kind words, critical comments are also welcome. You help me to improve this article.
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1 Response to "Become a millionaire by playing the lottery"
Thanks for the interesting article!
The idea is a dream! Especially how to invest the money! Nevertheless, the reality is different as you have already pointed out. Then rather save monthly savings plan and draw from it&
But we are all allowed to dream, even if most of the time it remains a dream.
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