Competitions – a fun way out of debt?

Crazy as it might sound but that plan might just work. How often have you heard this phrase said in movies or in TV shows? Well how about this for a crazy idea – try clearing some of your debts by entering competitions to win prizes. Then either keep and enjoy those prizes you win while saving yourself the money it would cost to buy them or sell the prizes for cash.

Let’s be clear, I’m always looking for alternative ways and ideas to reduce debt. I will consider almost anything that is legal. Any ideas I have or come across I will pass on to you through this blog. I think a lot of people’s minds are closed to new and unique ways of doing things and as a result they get caught in the vicious cycle of trying to change behaviours that are firmly entrenched while getting frustrated at the lack of results. To me entering competitions is a novel way of at least trying to do something about your debt.

Too often I hear from people that they just don’t have the patience or willpower to tackle something as boring as their finances. It’s true that personal finance can be boring but so can brushing your teeth. I still brush my teeth a couple of times a day though. Entering competitions is a fun and exciting way to maybe win a little extra money. Think of it as a way to brighten up your debt freedom journey.

Entering competitions when times are tough is not something new. During the depression events called “Dance Marathons” were held in local halls. These were dance competitions based on endurance. The idea was that couples would dance for days in the hope that they could last the longest and win the cash prize. For more background information on Dance Marathons click here.

The best way to think about entering competitions is as a hobby. There is absolutely no guarantee that you will win something but entering competitions serves two purposes. The first is that you feel like you are doing something about your debt that you are taking action and moving in the right direction, although at a slow pace. The second is that it offers hope. If you enter a competition there is always a hope, no matter what the odds are, that you will win a prize. It is this hope than can help you through the dark days of your debt. You have to be kind to yourself and give yourself hope – however small.

How to do it?

There are competitions going on almost everywhere you look. The newspapers, the local store, the radio and of course the biggest place to find competitions is the internet. Set aside sometime each week to enter competitions. If you have children then this will be a fun way of spending time together as they can help you stuff the envelopes with tokens and offer suggestions for tie breakers.

While the cost of entering competitions online is usually free. Competitions where you have to send your entries via post cost money in the form of stamps and envelopes. This is something you need to be aware of. While the cost of entering competitions may be negligible it will eventually add up. So what I recommend is that you set yourself a competitions budget. Yes I know the dreaded ‘B’ word, but at least time it is in relation to having some fun!

Why bother – no one ever wins?

This is the key point. The vast majority of people never win because the vast majority of people never enter the competitions in the first place. How do they ever expect to win if they don’t enter? Reduce it down to simple maths and probability. The more competitions you enter and the more times you enter each competition the higher the probability of you winning something. It is a numbers game.

One of the main reasons people tend not to enter competitions is that you actually have to do something. You might have to complete a tie-breaker or you might have to collect tokens. For a lot of people this is too much hassle for something that may or may not pay off. What I say to this is that you have to make at least some sort of effort and if you are honest the effort involved in entering most competitions is minimal.

Above all else have fun.

You may not win anything but as someone once said “it’s the taking part that counts” and just remember that you have to be in it to win it. J

Just to let you know that I’m taking my own advice and from this week onwards I am going to try to enter at least five competitions a week. I will keep you posted on the results and post pictures of any prizes that I win. Fingers crossed.