> These days, the lottery often grows above $600M, at which point spending 2 dollars for a 1:292M chance in winning actually makes sense. As long as you don't need those 2 dollars because you still won't really win.
Just keep in mind the advertised prize is the sum of payments of a 30-year annuity. You've got to use the cash prize when considering your winnings, so it's not really a good deal until the advertised prize is about $1.2B. (And you should really consider federal taxes and potential for multiple winners)
Personally, I get enough entertainment value to make up for the short fall in expected value when the prize gets up to $1B. But I also don't have any problem affording the tickets, and most likely would be the most boring lottery winner ever if I won a big prize. Maybe I'd splurge and order muni fiber even though it makes no sense to do so.
Just keep in mind the advertised prize is the sum of payments of a 30-year annuity. You've got to use the cash prize when considering your winnings, so it's not really a good deal until the advertised prize is about $1.2B. (And you should really consider federal taxes and potential for multiple winners)
Personally, I get enough entertainment value to make up for the short fall in expected value when the prize gets up to $1B. But I also don't have any problem affording the tickets, and most likely would be the most boring lottery winner ever if I won a big prize. Maybe I'd splurge and order muni fiber even though it makes no sense to do so.