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Secrets To Wealth

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The secrets to wealth in action

The final guide in the secrets to wealth series is how to become a Lotto millionaire.

Lets assume that you spend $20 each week trying to win the big Lotto loot. At the Shape of Money, we don't think that's a wise investment. We accept it's a fun bet, but are you doing it because it's fun paying the head office wages of the Lotto staff, or because you want to be a millionaire? If it's the latter, read on.

As discussed in previous secret to wealth topics, achieving your financial goals through saving and investing is a long-term strategy.

We'll demonstrate how the Zolas turned their regular weekly flutter into a genuine long-term nest egg. They won't become millionaires, but they'll turn their discretionary Lotto money into a retirement option. Lets assume Zola is 30 years old and is happy to save the Lotto money for 35 years.

In the process, you'll see just what is possible with patience and a long-term focus - and it doesn't require a huge income.

A step-by-step process

Step 1
Don't play Lotto. Save the $20 each week in a separate bank account.

Step 2
After six months, you'll have $520. Identify an international share investment passive unit trust and invest the $520. Every five weeks, invest the next $100 (it's all you can afford, but you'll serendipitously be taking advantage of dollar-cost averaging).

Step 3
Save and invest for 35 years (told you that you'd need patience). It's over the long term so you can ignore the market and currency movements.

Step 4
Cash in your investment. There is no guarantee as to the value of your investment in 35 years. But based on historical returns, it would be fair to suggest that a 4.5% after-tax real return on international share investments may be achievable. Using the regular savings calculator the $87 per month ($20 per week) savings may be worth $87,000 after 35 years.

A $90,000 nest egg isn't a bad reward for giving up the weekly Lotto!

The point of this simple exercise is to demonstrate that anyone can save for his or her future - and that it doesn't require a big income.

the Shape of Money can provide the tools such as:

All you need to do is provide the discipline and the saving goals.

Good Luck.

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