Superenalotto, how to invest your savings instead of playing

The expectation is growing for this evening’s draw Superenalottowhose premium is 306.4 million eurosthe tallest in the world.

Winning at the Superenalotto is almost impossible but the Italians like to bet despite the certain loss. An expense of a few euros each month that is lost, while it could be set aside to invest your savings instead of playing.

In the first half of 2022, the gambling market brought over 65.7 billion euros to the state coffers, up from 48 billion in 2021, despite the fact that the odds of winning are extremely low while the probability of losing is very high. sums played.

From a statistical point of view, in fact, to win the Superenalotto jackpot it is necessary guess a combination of 6 numbers out of 90with a chance to win equal to 1 out of over 622 million. In other words, the probability of winning is 0.00000016%while that of losing the amount wagered is 99.99999984%.

The situation remains very unfavorable also for other games of chance, as well explained by the “The player’s ruin theorem», According to which a player who continues to face a bank richer than the capital at his disposal is destined to lose all the capital he plays with a probability of 100%.

Based on this assumption, if you spend 25 euros a week (100 per month) for gambling, after ten years you have incurred a total gambling expense of 12,000 euros. Instead of trying your luck at Superenalotto or other games, how much could you earn by investing the same amount, equal to 100 euros per month, for ten or twenty years?

To answer this question, let’s see below what the best methods to make a small capital yield e how to invest your savings instead of gambling at the Superenalotto.

How to invest 100 euros a month instead of playing Superenalotto

Caution: the following discussion is not intended to encourage investment, which carries with it the risk of capital loss. Rather, we compare the expense to play Superenalotto with investment plans for which we recommend relying on the professionalism of the sector.

Even if you don’t have the capital available, by setting aside small amounts every month you can start investing those 100 euros a month to get a variable yield based on risk. Investing this amount instead of playing the Superenalotto, will allow you to have more chances of achieving financial goals than the (almost nil) odds of winning a millionaire sum.

By accumulating small amounts every month and regularly fueling the investment, you could in fact reach assets worth several thousand euros in ten years. And you may be surprised at the amount you can get over an even longer period thanks tocompound interest.

Before investing even just 100 euros a month, however, you must ask yourself about what risk do you want to take: every investment in fact involves more or less great risks, and generally moreinvestment is safethe lower the yield.

How to invest 100 euros per month based on the risk profile?

For low-risk investments you will need to prefer:

By increasing the potential return and consequently the risk, you can choose between:

How to invest your savings instead of gambling

After having seen different types of investments also suitable for those who have scarce capital available, let’s see now how to invest your savings instead of gambling.

The idea of ​​being able to transform a certain loss – the 100 euros spent every month for ten years in the game – into a nice sum is tempting even the most tenacious gambler, but without a doubt a change of mentality is necessary.

Like gaming, investing is also a business driven by emotions: fear, greed, joy, anger, regret can influence investment choices, altering judgment and rationality. But what is certain is that in the long run, gambling leads to certain loss while investing makes money.

The 2018 edition of the Credit Suisse Global Investment Returns report states that the average annual return of world stock markets from 1900 to 2018 stood at 5%, while that of the bond market at 1.9%. Over the past 50 years, the results have led to a yield of 4.7% for equities and 4.4% for bonds. Although these data refer to very long periods, they are also repeatable in the medium-long term.

With a time horizon of 10, 15, 20 or 30 years, an effective way to reduce the risk of an investment is to use a capital accumulation plan (PAC)which allows you to invest in riskier ETFs, stocks or assets through payment in installments.

In this way the risk is not eliminated but reduced, thanks to the flexibility of the instrument, which allows you to invest in small installments by distributing purchases over time in order to eliminate seasonality and market fluctuations.

If you still do not believe that investing is the winning choice in the long term, look at the following table, in which we compare the return of 100 euros per month played at Superenalotto and invested in a portfolio through PAC:

Of course, you can always tempt fate and maybe be the lucky winner of a millionaire prize. However, he remembers that the odds of making 6 at the Superenalotto are about 1 in 622 million. Think about what you can achieve by managing your savings correctly and spending the amount of money you spend each month playing differently.