A poor investment decreases one’s quality of life.
Hold that while simultaneously that humans are irrational creatures, prone to making decisions emotionally that decrease our quality of life.
Enter the lottery!
One of the primary reasons people invest in the lottery is because it’s view as one of the few options for lower class individuals to acquire substantial wealth.
But statistically we know for every dollar spent on a lottery ticket only 60 cents of that dollar is retained, assuming you win otherwise it’s $0.
A good investment, I would say on the other hand but that’s where you’re holding the irrational creatures, increases your quality of life.
Introducing, Prize-Linked Savings. The concept is fairly self explanatory. A prize is linked to saving, in most cases, via the creation and contribution to a savings account.
Individuals are then entered to win a prize, either interest on the collective money that’s been saved or a prize provided by the sponsor or company.
Many banks offer a PLS system currently, and others offer one less explicitly mentioned.
Somewhere on this earth I hope the rational man convinced his less rational counterpart to reconsider.