“Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.” – Proverbs 13:1 (ESV)

Each of us needs to work. Most of us have to work for economic reasons, but there are also social, emotional, and spiritual reasons that compel us to work. This need to work is on my mind because of the extraordinarily large Powerball jackpot (over $1.5 billion awarded on Wednesday, January 13).

If you didn’t win, are you surprised? If you didn’t play, you have a great grasp of probability. Congratulations to you all — I consider you winners because you did not have the opportunity to be ruined by acquiring wealth suddenly.

You’ll enjoy it more if you work for it.
(photo by Jay Mantri – used with permission)

The problem with Powerball

Powerball and its cousins are all forms of gambling. While I agree that one should be free to do with his money as he pleases, at its root, gambling is a form of laziness. Instead of committing to acquiring wealth through discipline, focus, and hard work, people believe that it’s possible to jump to the front of the line by buying a lucky ticket. Of course, when the odds of winning it all are 1:300,000,000, you can begin to understand the wisdom of they saying “Lotteries are a tax on those who are bad at math.”

The lure of easy wealth and the leisure that would follow its acquisition expose the roots of sloth — one of the seven deadly sins. This is not a good look for a nation that’s already substantially overweight.

Preying on the poor

Even worse than the undermining of initiative, state-sponsored games of chance rig the game against those least able to afford it. I believe in treating my fellow citizens like adults, but I also think it’s evil to place obstacles in the path of the blind. Let me give a quick example: I read recently that among households making less than $20,000/year, the average spent on lottery tickets is $550 per year. Although that’s less than 3% of annual household income, that’s $550 that doesn’t feed or clothe that family. Worse, since most lotteries in our part of the world were justified to pay for higher (i.e., college) education, that $550 goes to subsidize the educations of others’ children — likely the children of better-off families. Does the word injustice come to mind?

Lest I be accused of being a killjoy, let me say that I’d have a less strenuous objection if the government  — the ostensible administrators of justice — weren’t the owner of such an enterprise.

Advice from a billionaire if you do get rich quick

Mark Cuban, the billionaire owner of the NBA’s Dallas Mavericks whom you may also know from TV’s Shark Tank gave some advice to the Dallas Morning News for the holder(s) of the winning lottery numbers. You can read the entire article from Business Insider here, but here’s his advice:

• [The first thing you should do is] hire a tax attorney.
• Don’t take the lump sum. You don’t want to blow it all in one spot.
• If you weren’t happy yesterday, you won’t be happy tomorrow. It’s money. It’s not happiness.
• If you were happy yesterday, you are going to be a lot happier tomorrow. It’s money. Life gets easier when you don’t have to worry about the bills.
• Tell all your friends and relatives no. They will ask. Tell them no. If you are close to them, you already know who needs help and what they need. Feel free to help SOME, but talk to your accountant before you do anything and remember this, no one needs $1 million for anything. No one needs $100,000 for anything. Anyone who asks is not your friend.
• You don’t become a smart investor when you win the lottery. Don’t make investments. You can put it in the bank and live comfortably. Forever. You will sleep a lot better knowing you won’t lose money. “

Why I’ll never win the lottery

Listen, I voted against the lottery when my state put it on the ballot (see my reasons above), so I don’t play now because I don’t want to be a hypocrite. But Mark Cuban’s advice was so good, I had to share it with you.

Many, if not most, of you are just getting started in your careers. If so, you can expect over time to earn significantly more money than you’re making now. So think now about how you intend to manage your financial house. We’ve talked about budgeting before here, and you have also heard me quote Dave Ramsey saying “Give every dollar a job.” But think further.

When you get a raise, a promotion, or a bonus, refer to this list. I don’t think you’ll need a tax attorney any time soon, but getting some professional advice regarding handling your money wisely is like hiring an academic tutor or a personal trainer. You want somebody who knows this stuff to help you avoid injury.

Be faithful and intentional in your generosity. Our church teaches tithing and is on track to give 20% per year back to the community and the world in the form of outreach.

Back to work

In an upcoming post, we’ll talk about how to prepare yourself for the work of the future. For now, make plans to do your best at the job(s) you have. As King Solomon said, “Do you see a man skillful in his work? He will stand before kings; he will not stand before obscure men.” – Proverbs 22:29 (ESV). There’s no reason that can’t be you, so be your own lucky ticket.

So how about you? What poor money habits do you need to unlearn? Add your comments below.