Better ways to invest $20

Better ways to invest $20 Posted: 26 Feb 2009 09:17 AM PST I had to stop for gas this morning, and there was something wrong with the card reader at the pump, so I had to go inside. There was one other customer ahead of me, and also only one clerk. I had to wait behind the guy in front of me, who was busying giving the clerk his lottery numbers. He played everything, every which way. Pick 3, Pick 4, the numbers in this order and that order. I couldn't help but overhear him as he nonchalantly monopolized the clerk's time (and mine). When he was finally done and it was time to pay, I watched him hand over a $20 bill. Now, I realize that this isn't a ton of money, but my mind got to wandering about how he could have better invested that $20. Had I been interested enough to say something to him, I might have told him: 1. Put that $20 into a savings account. Even with today's pitiful interest rates, he would have made SOMETHING on that $20, and it would have compounded over time. 2. Buy a stock. If it's the risk vs. reward gambling feeling that appeals to this lottery player, how about rolling the dice and seeing what happens on one of these blue-chip stocks that's undervalued because of the economy? 3. Buy a book. Couldn't that $20 be invested into learning something new? What book, you ask? How about "A Thousand Ways to Make a Thousand Dollars." I'm no statistician, but I've read the book and would guess the odds of him learning a way to make some money are far better than the odds of him winning the lottery. 4. Take a workshop. The local community college not far from my house offers all kinds of community eduction seminars and workshops on the weekends, some for less than $20. Anybody can sign up and learn about personal finance, investing and other useful money topics. 5. Pay down debt. The average American carries credit card debt. If you carry a balance on a card with a 13% rate, paying it down would effectively earn you 13% on that $20. It would work the same if you were paying down the principal on a home, car or student loan. 6. Donate to a school. Where I live, the lottery generates money for the education system. If he cut out the middle man and simply donated to a school, he could at least take the deduction on his income taxes. OK, OK, I'm not here to grandstand about how others should spend their money. And I hope the guy in front of me today hits his numbers and gets a payoff. Odds are, of course, that he won't. I just thought I'd suggest some strategies for that $20 that might be better than buying a lottery ticket and just crossing your fingers! One last thing about my gas station trip: When the guy walked out the door and it was finally my turn to step up to the counter, the clerk apologized to me for how long it took. Then she said, "He does that every day."