How you can be a Millionaire by Saving your 20 Pesos instead of Playing the Lotto

Lotto is a lottery game in the Philippines. Initially called Lotto 6/42, the player chooses any set of 6 numbers from 1 to 42 and wins when these numbers are drawn in any sequence during the draw date. Every ticket costs 20 pesos and you can bet as many as you can. I'm not really familiar with all the details of the game plus there are more than just the Lotto 6/42. What my point is that many people are betting in this game to hopefully win a  fortune.

However, if you are a practical person. You don't bet on small chances. Worst, if you're an engineer you calculate your chances. Since that's 6 combination in 42 choices in any sequence then you use the combination formula. Calculating you get 1 chance in 5,245,786 combinations or in percentage 0.000019% chance of winning the game. That's near impossible!!! Even if you bet all your life in this game, I doubt if you could win.



The prizes though are extremely big, millions! But the chances? Very millions away. However, if you are smart, you decide to save your 20 pesos a day and put it in a right savings/investment vehicle.

I'm gonna show you a calculation how you can earn millions still by saving your 20 pesos a day:

Say, you are an educated investor, and you put your money in an investment that earns 12% per year. You start saving at the age of 23 and you save 20 pesos a day (365 days a year, so that's 7300 pesos per year)  for 6 years and stop saving until you retire at the age of 60 (ideal retirement age).

Then, it will look like this:

Year	Savings	Amount + Interest
23	7,300.00	8,176.00
24	7,300.00	17,333.12
25	7,300.00	27,589.09
26	7,300.00	39,075.79
27	7,300.00	51,940.88
28	7,300.00	66,349.79
29	0	74,311.76
30	0	83,229.17
31	0	93,216.67
32	0	104,402.67
33	0	116,930.99
34	0	130,962.71
35	0	146,678.24
36	0	164,279.63
37	0	183,993.18
38	0	206,072.36
39	0	230,801.05
40	0	258,497.17
41	0	289,516.83
42	0	324,258.85
43	0	363,169.91
44	0	406,750.30
45	0	455,560.34
46	0	510,227.58
47	0	571,454.89
48	0	640,029.48
49	0	716,833.02
50	0	802,852.98
51	0	899,195.34
52	0	1,007,098.78
53	0	1,127,950.63
54	0	1,263,304.70
55	0	1,414,901.27
56	0	1,584,689.42
57	0	1,774,852.15
58	0	1,987,834.41
59	0	2,226,374.54
60	0	2,493,539.48

At the age of 60, you now have 2.5M pesos as retirement money.

How much did you save? 20 pesos a day for 6 years or a total of 43,800 pesos?

Isn't that much affordable?

If you're betting on Lotto, how much money have you already spent? I'm sure you don't only bet on 1 combination or ticket a day.

However, what if you kept on saving even until the age of 60?

And lastly, anyone can save more than just 20 pesos a day. What if you saved 50? 100? How much money could have accumulated after your retirement age?

Last question. Where do invest or save your money then?
Again, simple: invest first in Financial Education