What If I Won 6 Million USD via Lottery Today
That’s 300 million in Philippine Peso, a money I probably can’t save even if I worked two jobs for a hundred years.
Within the first two weeks of 2020, the Philippines had its first 2020 Lotto Millionaire of the Year. The bettor won almost 2 million USD. Just shy of a few hundred thousand. That was the jackpot for the 9th of January’s 6/55 Grand Lotto.
Fast forward to today, there’s no lottery since the second week of March so the jackpot has been stagnant for quite a while. The biggest jackpot based on the PCSO (Philippine Charity Sweepstakes Office) website is 302 million Philippine peso or about 6 million US dollars which is for the Ultra 6/58 Lotto. The jackpot has been the same since March 15.
I have no idea when their operations will resume, but when they do resume, and if I tried my luck and won, here’s what I’m going to do.
The Power of Luck
First, let’s take a look at how lucky I should be to win the lotto.
For me to mathematically understand my odds for winning the lotto, I used WebMath’s Chances of Winning the Lottery Calculator.
And from the result, I had a 1 in 40,475,358 chance of winning the 6/58 Lotto.
I have always been thinking if I could play all the possible combinations for the sake of winning.
If I decided to pay for all the 40 million possible combinations, considering that each play costs 20 Php, I will be spending 800 million Php. So even if I won, I’d have a 500 million loss. Not a chance. I won’t do that.
So I guess, I will just keep going with a 1 in 40 million chance.
Okay, this is really it. If I played and won, this is what I’ll do.
I’ll Do the Envelope Rule
First, I need to pay tax
Based on the latest law on taxation in the Philippines, the TRAIN Law, winnings on lottery are subject to 20% tax regardless of the amount.
For simplicity’s sake, let’s say the jackpot is 300 million instead of 302.
This means, I’ll be paying 60 million for taxes. Whether I like paying such a big amount of tax or not is not an issue, it’s an obligation to the country. So I’ll give it to them freely. As a tax-paying citizen, I’d see to it that my tax fees are used for the betterment of the country.
Second, I’ll offer my tithes
As a Christian, this has always been part of how I allocate my money. This usually goes first in my calculation. But technically speaking, my taxes are deducted first before I offer my tithes.
Before tax or after tax?
This has been a question among Christians, too. I am not sure how they did it in the old days. But as for me, it’s usually before tax. So if my winnings in the lottery were 300 million, I’d be offering 30 million to the church as my tithe and perhaps, I’d give the extra 2 million I deducted a while back as a thanksgiving offering.
I do this believing that everything I receive is from God and that offering my tithes is a way to help the cause of spreading the gospel and creating communities where physical, mental, and spiritual growth is encouraged. Churches do a lot of charity works, too. This is also one practical reason I keep my tithing habits.
Third, I’ll invest a big chunk of it
Now, with taxes and tithes deducted, I am left with 210 million.
I will invest 110 million.
Where will I invest? That is the question.
With the stock prices of major publicly listed companies now at a discount due to all the crazy things happening in 2020, and with prices that are similar to how they were 5 to 10 years ago, I think I can go with any blue chip stocks in the Philippines.
I will go with Jollibee (JFC), Bank of the Philippine Islands (BPI), and Ayala Land Inc. (ALI) but if I were to choose just one, I’d go all in with Jollibee. I’ll give all my 110 million to Jollibee because I believed in Jollibee as a child and I still believe in its potential to grow even more.
By no chance should you take this as financial or investment advice, I am simply sharing my hypothetical investment action if I were to win the lotto.
If I bought 110 million Php worth of stocks from Jollibee, it still wouldn’t be enough to become a shareholder with voting rights, but it’s okay. That’s going to be part of my long-term plan.
Why not build my own business with this amount of money, you ask?
I am not sure starting off a business with 110 million is a good idea. Given that I have no experience running a business, losing that 110 million can happen in an instant. But don’t worry, I have business plans too.
Fourth, I’ll save some amounts
I think it’d be nice to save five million just because. This will be my new emergency fund.
Fifth, I’ll buy stuff
First thing I’ll buy is a 35 million townhouse I’ve been eyeing for months now. I can finally have a home I can call my own. I guess I’d start living a little more comfortable than how I do today.
Should I buy a car?
I hate going through the metro traffic. I’d still have to use public transportation and I wouldn’t mind.
Or I’d get a mid-range bicycle with a complete set of protective gears.
What else am I buying?
I’m buying a land in my province. There’s a huge lot behind our ancestral land which is some sort of a farm where my grandfather used to feed his and his colleagues’ cows and carabaos. They also planted rice, corn, and other crops in the land.
The total land area would sum up to about 3 to 5 hectares. I don’t know the current owner and I don’t know how much they’ll ask me for it. But I’m willing to pay up to 30 million for the land.
Now I’m left with 30 million.
Sixth, I’ll let someone run a farm for me
My grandfather was a farmer and I admired his hard work since I was a child. I don’t know how to run a farm, but I’m sure there are people from among my contacts who do.
I’d love to take part in promoting agricultural developments in the country.
I haven’t run the numbers, but I think 20 million is okay to begin with.
I’d make sure to hire locals and pay them handsomely.
Seventh, what to do with the remaining 10 million?
The house I’m buying is not yet fully furnished so I might have to buy furniture and I’d also love to have my own home studio for podcasting and possibly for creating music.
That’s going to cost me quite a lot.
This is the only luxury I’d be giving myself. So I’d splurge 5 million for furnishing and for all the equipment I’d be needing.
With the remaining 5 million, I think I’ll give some amount to my parents and family members. I’m putting this last not because I thought of it last. It’s just that I’d want to show them an example of how I’m going to spend this big amount of money so they will also not hastily spend whatever amount I’d be giving them.
I haven’t paid much attention to clothes or gadgets until now, but it’s time I made a few adjustments to my wardrobe. Just a few.
I’ll probably have some leftover money to pay for a family vacation in Europe for a month. I’d go for this when all the travel restraints have been lifted and the risk of getting sick due to corona virus is at its minimum.
And that’s it.
After doing all this, I’ll live my life like how I used to.
I’ll be going back to my adjusted normal
I will still be employed.
And I can finally say, this job is like a hobby to me. I don’t work because I need the money. I work because somehow I have a good balance of having fun, acquiring knowledge, and advancing personal development from what I’m doing. And that I believe in and love the company, and I enjoy working with the team.
I’d still be commuting if needed. I love working from home, but when the time comes that I’d be required to go back to the office, I’ll oblige. It’s also fun being in an office and interacting with people face-to-face.
I’ll be back to being an employee working 40-hours a week on my day job and working the extra hours for my passion/side projects.
The only difference would be that I have a 35-million townhouse, a 110-million worth of stocks, a few million as an emergency fund, and a 50-million farm being run by people I trust.
This sounds like a very simple plan. If you also think I’m too simple, that’s fine with me. I don’t feel bad about my money decisions.
So now… what do I do to win the lottery?
I’d be honest with you. I wouldn’t be investing my time and money toward winning the lottery. 1 in 40 million requires too much luck. I can’t rely on luck.
But just in case, if even for a day of all the remaining days of my life, if I ever decided to bet once and won, I’d go back to this article and take this as my guidance.
How about you? What will you do if you ever won the lottery?
Share your story.