what happens if you take the same amount of money and every single month you invested
in one of the biggest stock markets in the world but then you take that same amount of
money and use it to buy tickets in the national lottery what would be the better return by the
end of the year over the next 12 months we're about to find out welcome back to casual cash
now that is quite the intro and this is going gonna be quite the experiments over this year
so i was inspired by two things that i've seen and heard in the financial news
and i decided that we would put it to the test here on this channel so by the end of this video
we will have brought shares into three of the biggest stock exchange indexes in the world
as well as using that same amount to buy tickets into this week's lottery so let's get started
so i said that i got inspired by two things in the news lately but how exactly did i go from
hearing something in the news to this experiment well lately the world markets have been sinking
brought about by low interest rates global supply chain issues and inflation and everyone is trying
to figure out when will this bottom out or if it will go down further the answer is that no one
really knows for sure which has led to many people using the phrase that trying to time the market
is like playing the lottery well that led us to part one the second was based on a bit more facts
this was a thought experiment i saw done by an instagram channel called personal finance club
in this thought experiment they showed three scenarios about timing the market over the last
40 years the first is where a person saved their money and invested at exactly the bottom of the
market after each big crash having the perfect timing the second person had the absolute worst
timing by investing at the peak of the market before all of the biggest crashes and the last
person invested the same amounts every month regardless of the markets regardless of timing
and as you can see the person who invested the same amount every month
regardless of the market came out on top with the highest return and that led us to part two this
got me thinking all the market commentators talk about reckless trading and timing the market is
playing the lottery but every year people do win the lottery and these are the 10 biggest lottery
wins in the united states and as you can see people have won as much as 1.5 billion dollars
or 22 billion rand that would make you the fifth richest person in south africa and is more than
you could ever win by investing that same amount in index funds or you could get nothing but at the
same time the most safe sound and thoughtless method of investing just blindly putting money
into top index funds each month can end up having some of the best returns for investors
so this year we're going to put this to the test every single month we're going to take 100
per investment and invest that same amount between three different etfs in the biggest stock markets
in the world that means a hundred ran to the s p 500 which is the 500 biggest companies in the
united states of america the ftse 100 which is the 100 biggest companies in the united kingdom
and the citrix top 40 which is the 40 biggest companies in my country south africa
and lastly we're going to take another 100 rand and buy 20 boards a month of tickets for the south
african national lottery and add together all of the winnings that we get from those then at the
end of the year in december we're going to tell you up all the results all the investments and all
the winnings and see what comes out on top truly a test of gambling versus solid and sound investing
the market might do well and we might not win any tickets or it could take just one
even medium lotto win to make it for the whole year so right here live in the channel let's
go and set up our recurring investments into the three market indexes and then we'll head over and
buy our first set of lottery tickets let's start off with our s p 500 investments in the usa we're
going to go to invest now select etf then we're going to search for s p 500 for this one we're
going to use the core shares s p 500 you can see the market has been down this month which could be
a good opportunity for growth this year all right so we're going to set up a recurring investments
uh so that it invests the same amount every month automatically uh so we're going to set up a 100
rand investment for each of the funds then we're going to make it excluding transaction fees so the
400 rank gets invested same as the lottery tickets we'll use our account funds we'll set up monthly
and we'll make it for the 28th of every month now today is the 28th so it's exactly the same day
every month including february but i see it needs three business days to set up so we're going to
set this up to start in february and go buy our first shares right now manually all right so we're
going to set it up let's make it 100 rand exactly without the fees let's buy these there we go done
and here they are right here in our portfolio price movements are immediate so they're already
0.13 up okay awesome so first investment down and a recurring investment set up for every month in a
year now let's go and repeat the process like i said earlier we're going to be setting up these
investments both the recurring investment of 100 per month which will go off the same time
automatically and the single individual investment they were making right now to begin the process
and have an investment for the first month now we've already invested in the first stock
market which is american standard poor's 500 called the s p 500 then we're going to set up
the same investment for the citrix top 40 in south africa and the third investment is going to be the
market of the united kingdom and the london stock exchange the ftse 100. all right there we go all
the stocks are bought and recurring purchases set up let's head on over and buy some lottery tickets
i don't know why but this one is quite exciting i don't usually play the lotto so here we are
i'm gonna be using my online banking to purchase the tickets which is f and b really is the easiest
because it's immediate you can do quick pick which allocates random numbers for the tickets
and lastly it pays any winnings right into your bank account which i can track so here we're
playing the standard lotto which is five rent per board which means for 100 rand we'll be buying 20
boards every single month so let's buy accept and confirm i'm not going to show the numbers because
i don't know if that's allowed or not but i'll check for the next video so we can put them up
and that's it lottery tickets are purchased and we are off to the races so ladies and gentlemen
that is it for today's video where we will be putting the national lottery against stable and
solid investing advice and seeing which one wins over the year we'll be doing this every month and
showing the results of the stocks and our tickets so if you like this kind of stuff please feel free
to click on the like button and if you want to see how this unfolds throughout the year and
how it ends please subscribe to the channel where we give all kinds of videos on finance investing
and personal wealth but until then i'll see you guys next time on casual cash cheers