Let’s be honest – everybody wants to improve their finances. But recent research by YouGov suggests that Brits are more likely to play the lottery (12%) than speak to a financial adviser (5%) to do that.
Brits have become more open to talking about money since the pandemic started. This includes discussing debt and finding ways to plan better for their future. Still, many are struggling with how to deal with their financial woes.
What the numbers say
The research, commissioned by premium insurance products provider Paymentshield, shows that almost half of respondents believe that improving their finances is more important than ever in times of Covid.
Surprisingly, though, many are looking at risky ways of doing that – by gambling away their hard-earned money. In fact, when asked about their choices to improve their finances, playing the lottery was the third most popular choice. It fell right after reducing spending (42%) and saving more (28%). Surprisingly, it also came before more sensible options like talking to a financial advisor.
According to the European Business Review, over 45% of UK residents gamble every month. And while the average player bets just over £133 annually, many others are losing much more than that.
Risks of gambling
“It’s clear to see that the global pandemic has made the UK consumer more worried about their financial future, so much so that they are prepared to gamble in an attempt to improve it,” says Paymentshield CEO Rob Evans.
But gambling is rarely the answer to improve finances, as the odds are always against you. According to the National Lottery website, your odds of winning the lottery are as bad as one in 45,057,474 for the Lotto. The Thunderball has the best odds in the country with a one in 8,060,598 chances of winning.
If the odds don’t seem too terrible at first sight, keep this in mind. According to research conducted by the Independent, you’re much more likely to be hit by a piece of a plane falling from the sky (one in 10 million) than winning the Lotto (1 in 45 million). The chances are also higher than a meteorite will crush you, you’ll die in a plane crash or lightning will strike you.
In short, it’s maybe not ideal to bet your financial future on these odds.
Alternatives to improve your finances
While cutting costs is essential during tight financial times, it’s also important to think carefully about what to cut. As Rob Evans explains, “There is a danger that consumers could look to financial products such as home insurance in their bid to cut costs. This could lead to disastrous financial consequences if they are left underinsured or without any cover whatsoever.”
Instead of looking at cutting essentials, start by contacting your service providers. They might be able to offer some kind of relief during the pandemic. For example, Paymentshield offers a three-month payment deferral on a number of insurance products. This relief is available to customers who have been financially affected by the pandemic.
You could also consider switching to a cashback credit card to get rewards for your essential spending. Other options include seeking debt advice and setting up a budget to see where you can cut down expenses.
