For those of you who may not be aware, recently there was a record-breaking lottery jackpot that caused frenzy across the country. People all across America were rushing to their local convenient stores buying handfuls of lottery tickets, with the dream of becoming an overnight multi-millionaire.  However, the fleeing dreams of many millions of people were quickly smashed as the numbers were read.

Speaking with people during the week of lottery-mania, I realized how many people saw this event not as a one time fun event, but a weekly occurrence. I never realized how many people played the lottery weekly, spending anywhere from $2 up to $100, or even more, a week. I thought this was foolish. I admit I indulge in the gamble of the lottery on occasion, but I never play weekly, and I certainly never spend $100 I learned that many people view the lottery not as a game but as a fanciful retirement account. Some people feel they have more control over their money by spending it how they want rather than allowing it to sit in some retirement account managed by a stranger. In reality you may be more in control of your dollars, but the likelihood of that control transforming into any type of return is extremely unlikely.

Instead of playing the lottery and hoping I would be able to retire early, I started my retirement savings early. I began working part time at a local electronics retailer while going to college, and was surprised to learn they offered a 401K with a generous match. I quickly enrolled, knowing I would have less in my paycheck but also knowing the small amount being removed would not make or break my monthly income. I worked at that job for 3 years and watched my 401K grow along the way. After a while you do not even remember it is being taken from your check, but the nice thing is whether you remember or not it still happens. Saving is hard for some people, so having an automatic deduction is the perfect option. I continue to add to my retirement savings and have opened multiple Individual Retirement Accounts (IRA) that I add to monthly through an automatic deduction from my checking account.

I still play and check my numbers on occasion, but I always know even if my numbers don’t match, I will still be ok when I retire.