5 Better Ways To Become a Millionaire Than Playing the Lottery
Written by
Dawn Allcot
Edited by
Nicholas Morine
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The Powerball jackpot continues to rise, with $1.4 billion at stake going into the weekend.
If you get at least one number in a Powerball drawing, you get a prize — although it may not be a substantial amount of money. Several players in California, Texas, Colorado, New York and Pennsylvania won $1 million in Wednesday’s drawing. Three players in Kentucky, Pennsylvania and Tennesee each won $2 million, since they matched five numbers and had selected the Power Play option, according to a report in The Tennessean.
Power Play multiplies your jackpot as a Powerball winner.
In spite of a handful of players winning a million, the odds of winning the Grand Prize in the Powerball, however, are 1 in 292.2 million. There are better ways to become a millionaire than playing the lottery.
In fact, lottery tickets are one of the things millionaires never spend money on, and you shouldn’t spend money on them either if you want to be rich, according to GOBankingRates.
Instead, consider these investments if you want to grow your wealth.
Invest in a High-Yield Savings Account
You can find high-yield savings accounts with interest rates as high as 5.25% in October 2023, according to GOBankingRates research. That’s a solid return on your investment. Even if you only spend a few dollars a week on lottery tickets, if you put that money into a savings account instead, you’ll see a decent return on your investment thanks to the power of compound interest.
Pay Down Credit Card Debt
Just as compound interest is a selling point for savings accounts, it’s a destructive force when it comes to high-interest credit card debt. If you focus on paying down your credit card debt, it will be like giving yourself a raise once you no longer have those minimum monthly payments to contend with.
Safeguard Your Retirement
If you aren’t maxing out your 401(k) (especially if your employer matches funds), you’re ignoring a solid means of building wealth. Retirement plans aren’t exciting, but they are important.
If you have extra cash not going toward credit card debt, student loans or other expenses — and you’re already investing the maximum in your employer-sponsored retirement plan — consider starting a Roth IRA or other account. It won’t create instant wealth, but it can be the foundation of a stable financial future.
Put Cash Into Home Improvements
Investing in home improvements or renovations can improve your quality of life now by increasing the enjoyment you receive from your home. It can also work in your favor to build wealth. The right home improvements can increase the equity in your home if you decide to sell or refinance later. In fact, the sale of your house, depending on the market you’re in, could even make you an instant millionaire.
Experts previously told GOBankingRates that a fresh coat of paint on your walls, power washing your home’s exterior and refinishing hardwood floors are easy and affordable ways to improve the appearance of your home.
Another cost-effective improvement that won’t cost much more than a short stack of lottery tickets? Replacing light switch and electric outlet covers.
Seek Out Education or Personal Development
Investor Warren Buffett has famously said, “Generally speaking, investing in yourself is the best thing you can do.”
That means putting money (and time) into courses, books, podcasts and anything that will help you improve your abilities or develop new skills. “Whatever abilities you have can’t be taken away from you. They can’t actually be inflated away from you,” Buffett said, per a prior GOBankingRates article.
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