Winning The Lottery | What you need to know

By Winning The Lottery Dreamer, May 31st, 2011,in winning the lottery | No Comments »

Winning The Lottery | Where it all began

Winning the lottery is a relatively old concept. Records show that the first lottery actually started in China during the Han Dynasty. It was believed that the Chinese lottery financed government projects. A lottery is a form of gambling in which lottery winners receive cash prizes through a drawing of lots. There are different games for winning the lottery. In some places, lottery winners can win cash prizes through a physical ticket drawing. When organizers host a physical ticket drawing, they have a 50% chance of gaining profit and a 50% chance of losing money. It is possible that the organizer will only be able to sell a few tickets and will end up losing money. There is also a type of lottery known as the “50-50” lottery where 50 percent of the total sales of the tickets will be awarded to the lottery winners. Nowadays, the more common and widely supported form of lottery is the “number lottery” in which players purchase lottery tickets with their favorite choice of numbers to stand a chance of winning the lottery. If their numbers are picked during the drawing, then the lottery winners get a cash prize for choosing the winning numbers. The number lottery gives several possible winners the chance to choose the winning numbers. When there are several people with the winning numbers, the prize will be divided accordingly among the lottery winners.

 Winning The Lottery | What you need to know

Winning The Lottery | Stories of hope

Winning the lottery is one thing that will bring a smile to anyone’s face. Most lottery winners have a heart warming story to accompany their reasons for choosing their winning numbers. In 2000, a man who went through the lowest point in his life had finally had picked a winning combination of numbers and he became one of the state’s biggest lottery winners. In 2006, a convicted man from Michigan won the lottery just two years after he was released. He felt so relieved when he found out that he won the lottery, because he thought that after being released from prison with a criminal record, his fate would be to endure a never-ending struggle in life to find employment and make ends meet. Winning the lottery with the winning numbers consisting of his mother’s birthday, helped him to buy a house for his wife and save money for his kids to give them a college education. In 2007, another one of the lottery winners who won $220,000 was more than happy to receive the large cash prize as this was his stepping stone towards becoming a billionaire.

One of the most astounding lottery stories is about a construction worker from New Jersey. He had a dream about his late mother and decided to bet 2912 in a lottery because that was her birthday – December 29. His dream was enough to convince him to buy 700 tickets of the same combination amounting to a whopping $700. In a game of 1-in-10,000 chance, one might think that was a bad move. Normally, those odds would deter anyone from betting such a large amount. Yet the persistent person in him drove him to bet and he won.

 Winning The Lottery | What you need to know

Winning The Lottery | Tax considerations & how to make it last if you do win

Winning the lottery isn’t always a bed of roses. There are a few thorns involved. First, you must pay taxes on any cash prizes that have been won in the lottery. The total winnings will not all go the lottery winners ‘ hands. Any gambling winnings which add up to over $5,000 are subject to a 28% federal tax withholding. Moreover, your winnings may also be subject to a state income tax, and depending on which state you reside in, the total taxes could exceed 50%. Second, there are lottery winners who seem to enjoy spending a lot of money and won’t hesitate to spend every penny of their winnings, thus ending up broke. This already happened to a man who won a huge lottery jackpot in 2002. He partitioned his winnings between his church, his family, the woman who sold him the ticket and himself. After getting his share, he was usually found in casinos and strip clubs spending all of his winnings. Four years later, he had nothing left to his name.

 Winning The Lottery | What you need to know

Winning The Lottery | Final thoughts

When playing the lottery, remember that moderation is very important. Sure, it’s ok to be able to spend freely every now and then, but it has to be moderated. If you make the right choices with your money and keep to a moderate budget, your winnings can last for quite a long time. Consider putting your money into a savings account, IRA, CD or government bond to make the most out of your winnings. Buying lottery tickets is a great idea to play the game of chance, but you shouldn’t bet too much money bargaining on winning the lottery or you might take a severe loss and end up in a worse position that you were in before you decided to gamble at high stakes.

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