About twice a month I buy a $5-$10 lottery ticket (usually Powerball or Mega-Millions).
On a rational, financial basis I am aware this is not a sound financial decision. Over time, I am much more likely to lose money than to win it.
So why do a buy them?
For two reasons.
First, it reminds me that Black Swan events, as described by Nassim Taleb, are not always negative events. There are positive Black Swans.
Second, it means twice a month, I play—if just for a few minutes—the “what if” game. What if I won big? What would I do differently?
And it’s in asking these questions I find the tickets’ deep value. Sure, I would probably get a nicer house and travel a little bit more, but, really, I wouldn’t do too much differently.
My day would still center around hanging out with my wife, taking care of our cat, and reading (mostly philosophy), writing, and walking.
Simply put, the reason I buy the occasional lottery ticket is to acknowledge I have already won a much bigger game.