Winning the Lottery vs. 10 Years of Hard Work to Earn the Same Amount
If given the choice between becoming a multi-millionaire via winning the lottery or working over 10 years to earn it, which would you choose? This question is silly right, because it’s a no brainer. 99.9% of people instinctively would rather win the lottery to become a multi-millionaire today. Economically this is reasonable because the value of money today is worth more than the value of it in 10 years.
However, this calculation only works if you don’t blow the money being stupid. Yet, this is what most people who win the lottery do. Multiple studies show that about 70% of all lottery winners end up going broke. This means the “time value of money” serves no purpose for those who don’t know how to make and keep money through hard work and good decision making.
You can’t find one study that shows a pattern of rich people who go broke after working hard over decades to earn their money. As it turns out, the process of learning how to get rich is more valuable than being rich. Just as in sports, the process of winning is more valuable than winning. If you have ever played competitive sports, then you know that competing in a winning game or match is more satisfying than looking at the trophy or medal the next day. If it were any different trophy engraving companies would be on every corner.
In conclusion, don’t let your instincts trick you into believing that having is more valuable than doing. While there are always benefits to be had in the short run, as the saying goes, father time is undefeated. Moreover, how you spend your time represents who you are and who you will become.