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How to take calculated risks with your spare cash

The ability to take calculated risks is often the key difference between ordinary people and wildly successful ones. Entrepreneurs, professionals, and athletes build a life around a series of well-calculated risks that have a lopsided payoff. In other words, they do things that others wouldn’t consider to gain an edge, whether that be investing in other businesses or putting money into their own. Companies like SoFi have plenty of experience that could help you make decisions around this – be sure to look through all of the options before deciding what to do with your own finances.

This skill is critical to financial management. Much of personal finance and investment advice is based on the asymmetry of risk and return. In other words, the simple formula to managing money is to cut the downside and maximize the upside of any decision.

Here’s how you can spend your extra cash wisely without wasting another opportunity:

Invest in yourself

There’s no better investment than one in yourself. Traditional education might seem overpriced, but that’s not the only way to learn and gain new skills. Online courses, premium webinars, eBooks, and workshops are all great ways to sharpen your talents and boost your potential long-term. The downside is limited, since even the most frivolous course or useless certificate can help you meet new people and develop a fresh perspective.

Look for a group experience

The intangible value of group experiences can add a lot of value to your life. Taking part in activities with others can help ensure a healthy work-life balance, and help you create new relationships, generate new opportunities, and maintain a healthy lifestyle. There are many ways to do this, such as joining local fitness clubs, going on a networking cruise within your industry, or even online via gaming and casino sites.

Start a side venture

Not all businesses are complicated or time-consuming. Some just require an upfront investment and a little ongoing maintenance to generate a considerable return. The ‘Buy-to-Let’ boom was a good example of how ordinary people with regular jobs could generate wealth by taking advantage of a clear arbitrage opportunity. A small down payment coupled with a mortgage at an attractive rate and a property in a high-yield area could generate a passive return for years.

Now with the property market fading, there are other opportunities to create similar passive returns. You could consider crowdfunding a startup on sites like Crowdcube or Seedrs, investing in P2P loans, helping your friend set up an online shop, or selling digital goods through your own website. According to some estimates, nearly a third of all workers in America have a side hustle. It wouldn’t be a stretch to assume the figures are similar in other developed economies. With the technology and access available today, it’s easier than ever to invest in different streams of passive income.

Spare cash is an opportunity to take some calculated risks that can have an outsized payoff. Consider spending the money on bets that won’t have an impact on your financial circumstances if they don’t work out, but could give you a considerable advantage if they do.

The Fastest Cars in The World 2018

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Who rules the road in 2018? From rapid 0-60’s to extreme top-end figures, there’s so many cars on the market that are competing for that extra millisecond off the line and pushing boundaries at the top end to be the true mean machine of the streets. Which is the fastest though? Brought to you by the SPD Custom Plate Maker is the worlds fastest cars in 2018. Buckle up!

Courtesy of: Show Plates Direct

What is a Creditor Voluntary Liquidation (CVL)?

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A Creditors’ Voluntary Liquidation is a procedure in which the company’s director/s choose to voluntarily bring the business to an end by appointing a liquidator who must be a licensed insolvency practitioner (IP).

Usually, a company goes into Creditors’ Voluntary Liquidation (CVL) after its directors realise that its liabilities exceed its assets or it cannot pay its debts as they fall due and so the company cannot carry on its business.

This liquidation begins by a resolution of the shareholders, usually at the directors’ request, and under the effective control of creditors, who can appoint a liquidator of their choice (need of 25% of the debt or more). The key factor that determines this course of action is the realisation by the directors and shareholders that the company is unable to pay its debts as they fall due or that it has more liabilities than assets.

The Creditors’ Voluntary Liquidation is the most common way for directors and shareholders to deal voluntarily with their company’s insolvency because it is in the interests of the directors to take action at an early stage in order to minimise the risk of personal liability for wrongful trading.

The purpose of this type of liquidation is to appoint as soon as possible an liquidator who has a duty to collect the company’s assets and distribute them to its creditors in accordance with the Insolvency Act. At Quabbala Limited we are insolvency practitioners in London.

The process starts with the calling of a shareholders’ meeting by the directors of the company. At this meeting, the members will pass an extraordinary resolution to wind up the company (75% majority required) and an ordinary resolution to nominate an insolvency practitioner (50% majority required). If 95% of shareholders agree, a short notice meeting can be held.

The nominee liquidator will conduct a relatively quick investigation into the statement of affairs of the company and will convene a meeting of creditors, which must be advertised in the London Gazette and 2 appropriate newspapers. The meeting must be held within 14 days of the shareholders’ meeting (normally held on the same day).

The creditors’ meeting will not be a physical meeting unless requested by 10% of creditors by value. Otherwise it will be a “virtual meeting” or a meeting by correspondence, unless a “decision making process” is used. A “decision making process” can include a “deemed consent procedure” in which the insolvency practitioner nominated by the members is automatically appointed unless creditors object.

At the meeting, copies or a summary of the Statement of Affairs will be made available to creditors and a report on the company’s history along with an explanation of the reasons for the failure of the company will be presented. Creditors will then vote to appoint a liquidator. The votes are based on the values of creditors’ claims. Should the creditors’ choice of insolvency practitioner be different from that of the shareholders, the creditors’ choice prevails.

The creditor voluntary liquidation (CVL) is complete when all the assets have been realised, all creditors’ claims have been adjudicated (where there are sufficient funds) and net realisations after expenses of the liquidation have been distributed to the creditors. The liquidator/insolvency practitioner will then call final meetings of creditors and shareholders and present his final receipts and payments account, together with a report showing how the liquidation has been conducted.

As we are insolvency practitioners in the City of London, please contact us if you require further information.

Cutting down on the electricity bill

The average UK electricity bill for a three or four-bedroom home is £590 a year according to UK Power, and many homeowners will be aiming to cut back on this expense.  Switching suppliers might seem like the most effective solution, but there are also small changes a homeowner can make to cut back on expenses.

Reducing Consumption

Installing energy efficient lighting and motion sensor lighting can cut down on energy expenses and add value to your home when it goes on the market.  Unplugging phone chargers and other electronic devices when not in use can also cut down on energy use.

Smart meters are another conservation method to cut down on utility expenses.  These smart meters are a replacement for outdated estimated readings, and instead, they provide precise minute-by-minute utility readings.  The government has begun the push for gas and electricity companies to install the meters, and they say it could save Great Britain up to £40 billion between now and 2050.

So, if your house is yet to be fitted with a smart meter, you could be paying extra toward your utility bills due to imprecise meter readings.  Also, it cuts the need for meter readings out and saves time.

Another energy-cutting tip is to replace old appliances with newer, more energy efficient models.  Upgrading to A+ or A++ washing machines and dishwashers can increase energy efficiency anywhere from 25-60% and result in significant household savings.  Energy ratings depend on size, so downgrading to smaller appliances is also a great way to save money on electricity.

As the world becomes more dependent on technology, we also forget about the drain our electronic devices have on our electricity.  Being more conscious about charging and turning off gadgets that are not in use can save a household an estimated £50 to £80.

Switching Provider

However, in the end, many will find the best way to save money on utilities is to switch providers.  Price comparison tools such as Money Super Market allow consumers the ability to compare a wide range of options in your area.

Different rates are available to consumers and fixed or variable rates can impact how much you will pay in the future.  Fixed rates offer stability and safety from price hikes, but a variable rate can see benefits in the form of a lowered rate.

The government reports annual savings of up to £300 for switching providers, so while cutting energy consumption can make a dent in your bill, switching providers can result in huge savings.  In order to save money, the government offers a variety of comparison tools to make the best choice.

However, switching providers may not satiate the environmentally friendly crowd, and energy efficient solutions may be the right investment if you are willing to pay more upfront to reduce your energy consumption and carbon footprint.

Workman clothing for companies and individuals

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Often, construction companies and builders main focus in uniforms and clothing is functionality.  However, in an increasingly fashion-conscious world, looks can also be an important way to attract employees.

Employee Concerns

Clothes impact how people feel about themselves and their work.  A smarter dress sense can increase self-confidence and lead to better work results.

While dressing for success is typically reserved for the corporate world, this does not mean that those in more manual labour positions do not feel the effect of confidence and clothing.  A drab, dirty uniform can impact the employee and make them feel of less worth to the company or project.

Protection and safety are clearly top concerns, and always should be, but this does not mean that cleanliness and appearance have to be sacrificed.  Many companies offer fashionable and functional work outfits.

Keeping the body warm and employee visible are key components of dress when a construction worker is on the side of the road filling a pothole.  But, higher quality workwear can greatly influence employee’s psyche.  If they are provided with more comfortable and better-looking uniforms then they will feel more comfortable at work and derive more satisfaction from their job.

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Furthermore, a sharp crew can increase a business’s profile and attract new clients.  Professionalism is often undervalued in many manual labour industries, and outfitting employees with a professional style can put a business ahead of their competition.

This effect can be seen across businesses and perhaps on the largest scale in the sporting world.  Football clubs pump a massive amount of funding into uniform development as they are aware it impacts their bottom line.  A popular uniform can bring in new revenue and fans and increase their club’s global brand.

In the case of smaller businesses, the same principles apply but on a smaller scale.  A cleaner and more professional uniform can result in new clients and profit, so proper uniforms can be seen as an investment rather than purely an expense.

Image and brand considerations are even important for small business, and uniform choices can have a long-term impact on success.

Work fashion for the individual

Work clothing has seen a resurgence in popularity in both high and popular fashion.  More people can be seen sporting workman brands and dressing like a traditional manual labourer.

Clothing items such as overalls, work jackets, are now sported by a young and hip crowd.  This can be seen as a co-opting of labourer culture or in a brighter light, an appreciation for hard work and a strong work ethic.

Either way, it is clear this trend can is seeping into the fashion world, and both business and individuals can benefit from the new-found appreciation for work clothing.

Some businesses are marketing specifically toward individuals wearing this attire outside of the work context.  This type of clothing will focus less on functionality and look to appeal more to the fashion aspect of consumer culture.

Workmen will not be caught in the purely fashionable clothing, but work clothing brands will increasingly appeal to the individual, so it is important to make sure you buy the right type of clothing for your specific need.

What Happens To Your Brain When You Lose A Trade?

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Trading requires much thought and attention. But did you know that our brain processes wins and losses differently and responds strongly to certain situations? Powerful reactions take place within certain areas of the brain – so let’s find out more about what happens during an unsuccessful trading session.

Loss Aversion and Chemical Transmitters

In 1979, psychologists Amos Tversky and Daniel Kahneman developed the Prospect Theory to help explain how people react to risks and uncertainties. This behavioral economic theory was based on the principles of loss aversion, which states that human beings are generally risk-averse. Losses have a more significant psychological impact on us than gains. This is because reward centers in the brain get silenced when losses are expected and are activated when gains are on the horizon.

Neurotransmitters are the chemical messengers of the brain. One neurotransmitter, nor-epinephrine, is critical in shaping our responses. People with low nor-epinephrine levels tend to be less sensitive to the pain of losing money. Similarly, those who have higher levels of these transmitters, show greater loss aversion. They are more sensitive to losses.

Interestingly, people who react strongly to gains in the ventromedial prefrontal cortex of the brain, pay more attention to monetary amounts. Those who have shown sensitivity to losses in the ventral striatum region, on the other hand, pay more attention to probabilities or risk processing.

Another theory suggests that losses may trigger more significant activity in the brain regions associated with registering emotions and decision makings, such as the insula and amygdala. These regions are also associated with pain processing. So, there is a biological justification for human beings being loss averse in general. After all, no one wants to lose money, or experience pain, for that matter.

The Brain – A Trader’s Friend or Foe?

The brain can be divided into two parts – the reflective system and the reflexive system. The reflexive part is associated with emotional responses, while the reflective part is analytical and logical. For traders, it is a constant struggle to strike a balance between these two systems. Being too analytical is also not helpful, given how quickly market conditions change.

It is also important to consider that our brain is a muscle. The more we use a particular brain pathway, by learning a trading strategy or using a specific indicator, the stronger it becomes. Strong neural pathways are great for constructive activities but can be a hindrance if you repeat a mistake again and again. So, if you continue to pick the top of an uptrend or get stuck in “overtrading” activities, your brain will not let you escape unless you make a conscious effort to do so and this can be challenging. As all seasoned traders know, adapting your strategy with the view of limiting your losses is an essential part of the trading process and should not be ignored.

By remaining aware of our responses to certain situations, we can not only identify patterns but can also work consciously on changing unhelpful responses.

Why Your Website is Your Most Important Sales Tool

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In the modern age, the world of business has shifted largely from the brick and mortar shops and boardrooms into the digital frontier. There is an ever increasing amount of both businesses and consumers who choose to conduct all of their research, transactions and support functions online. The benefits are obvious: while it used to be that your customer pool was limited to whomever was within driving distance, or who subscribed to a magazine that mentioned your business, now, anyone is the world is a potential customer.

With this shift has come an inescapable need on the part of businesses to re-evaluate nearly every aspect of their operation. How do we interact with our customers? How do we market to customers halfway around the world? How do we ensure that we can ship to a customer in Taiwan? These are common questions that every business has had to ask itself over the past decade, and struggling to find answers that will grow a loyal base of customers, while generating a healthy profit. While there are no simple answers to these pressing questions, in the digital age, it all begins with your website.

If you haven’t stopped to consider what you want your website to do for you, or you don’t know how it’s doing, you’re already falling behind. Now, more than ever, it’s crucial that your company’s website serve as your primary sales tool for the following reasons:

 

It’s Your Always Available Sales Consultant

Put yourself in this scenario: you need to buy a tailored suit, one that you won’t be able to find in a JC Penny or Belks. To find it, are you going to drive around your neighborhood looking for tailors? Are you going to check the newspapers and bulletin boards? Probably not; I feel safe in assuming you’re going to do a Google search. If that’s how you’re finding businesses to suit your needs, what do you think your customers are doing?

Your website is now your primary resource for educating potential customers about who you are and what you do. There’s nothing that can replace the money making power of a tried and true sales team, especially in the world of B2B, but prospecting and closing the deal takes time, effort, and doesn’t always offer an ROI like you hoped. With a website, you’re creating a resource for people to discover you, learn about you, and potentially, even buy from you, all without getting out of their chair.

In addition, your sales team can focus on your hard targets without having to entertain every curious online browser, letting your website handle that load, so your rockstars can focus on true money making activity.

 

It Isn’t Limited By Geography or Time Zones

I mentioned at the beginning that online business has nearly removed every barrier there is to doing business anywhere in the world, and that businesses have thrived because of it. That’s absolutely true, but the fact remains that people operate differently in different parts of the world, and at different times.

Your sales and marketing teams need sleep and vacation time to operate at peak efficiency, and your customers may be operating in a completely different zone from your own. To fill in that gap, you need an efficient, informative, professionally designed website that your customers can access, day or night.

In order to make sure your site is supporting your international customers, have language options available, hire as many customer service representatives that are  multilingual as you can, and have an FAQ or Information page that specifically addresses international buying and shipping. It will go a long way in helping your business have an impact all across the globe.

 

It Isn’t Limited by Schedules or Meetings

In sales, time is money, and money is volume. The more prospects you can touch base with in a day, the higher a chance you’re going to land a convert, so can you really afford to talk to that small business owner for a half hour, only for him to turn you down? On the other hand, it’s very hard to grow the kind of relationship that is so essential to good sales in 15 minute increments over the telephone, so how can you not take the time to engage your clients?

This has been the dance on the razor’s edge that sales professionals the world over have been grappling with for decades. It’s hard to strike a balance between time spent and time wasted when you’re striving to reach your sales goals, and you never 100% know that your sales call will lead to a deal.

But websites aren’t limited to 15 minute sales calls, and you don’t have to work around meetings. Your website will always be there where your customers have five minutes or five hours. With that sort of flexibility, you can afford to pack in much of the information that you’d normally cover in a cold call or initial follow-up, and so when your customer does reach out, they’ll prioritize their time for you.

5 Ways Technology Is Improving Business Loans

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Business loans have been around for thousands of years. Surprisingly though, little of how loans are actually made has changed over the last few centuries – at least, not until now. Thanks to advances in computer networks, blockchain and other technologies, business loans are being improved in ways never thought possible.

Any business owner looking to borrow money these days will discover a whole new world of business lending. Traditional banks and private lenders are now facing stiff competition from online lenders, and the methods through which they are making loans available are changing drastically. Technology is a wonderful thing.

Check out these five ways that technology is making a difference for both business lenders and borrowers:

1. Faster Approval Times

It used to be that applying for a business loan was a long, complicated process that could take weeks. Applicants had to procure the paperwork, complete it, and submit it for examination and approval. But that was just the start. Multiple approvals had to be given by an officer at each level of the approval process. Just getting an answer could take more than a week.

Technology has changed the game by eliminating a lot of the inefficiencies of the old paper processing method. Electronic applications are much faster to authenticate, easier to approve, and more efficient when it comes to channelling them through all of the approval layers. Indeed, applicants can generally get pre-approval within minutes. After that, it is a simple matter of verifying application information.

2. Direct Deposit Funding

The whole idea of applying for a business loan online is to keep everything as electronic as possible. An obvious end result of this philosophy is utilising direct deposits to fund approved loans. Borrowers no longer have to go to the bank to receive a paper cheque that must then be deposited into a business bank account. Financial institutions, both public and private, can transfer funding directly from their own accounts to the borrower’s account. Electronic funds transfers (EFTs) in the modern world can be completed in as little as 24 hours.

 

3. Increased Competition

Opening up business loans to the digital world has had quite an effect on lender competition. Before the technology age, shopping around for a business loan meant contacting multiple lenders to either set up a face-to-face interview or conduct it over the phone. All of this took a tremendous amount of time. Competition was stifled as a result.

Today’s borrowers can jump online and compare multiple business loans within minutes. That mean lenders can no longer afford to be lax with either marketing or outreach. Technology has forced them to work a lot harder to win customers. That is good for borrowers.

4. Increased Transparency

The world learned a lot of important lessons from the previous decade’s global financial crisis. Among them was the need for more transparency in the financial sector. Various governments implemented new rules that forced financial institutions to be more transparent – and to use technology to do so. Business lending has never been more transparent than it is today.

5. Higher Approval Rates

Fifth, and perhaps most importantly, technology has led to higher approval rates for small business loans. Why? Because lenders who choose to operate primarily online use different methods of measuring risk. Rather than looking at industries, they look more closely at individual borrowers. They look at credit reports, non-traditional assets, the length of time a business has been operating, etc.

Also consider that technology reduces the overhead costs of banking. Lower overhead costs make it more lucrative to do business with small business owners. Lenders can earn more profit on a large group of small-business owners than they can on a single corporate borrower.

Technology has changed business lending for the better. Today’s business loans are much more accessible and customer friendly thanks to the changes wrought by technology.

Writing an Effective Abandoned Cart Email

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Customers wander away from shopping carts for any of a number of reasons. Sometimes it’s your fault, sometimes it isn’t. Whatever the cause, writing an effective abandoned cart email has proven to be quite successful at bringing shoppers back for another look and often a conversion as well.

The Stats

According to a survey conducted by the marketing automations and email marketing firm Moosend:

  • Nearly 45 percent of cart abandonment emails are opened.
  • Click-throughs result from half of those opens.
  • Conversions are derived from half of those click-throughs.

This comes to a five percent conversion rate, which makes abandoned cart emails one of the most successful forms of email marketing. However, these results are only achieved when the messages are crafted well and executed strategically. Here’s what you need to know.

Timing is Important

In most cases, you’ll need to get a message in front of the customer within 24 hours from the time they wandered away from the cart to have a shot at converting them. What’s more, the sooner the abandoned cart message is sent, the more likely it is to be effective. A study conducted by the real-time behavioral and conversion marketing specialist firm SeeWhy found:

  • Emails sent within 20 minutes increased conversion rates up to 5.2 percent.
  • Messages sent within an hour managed a 4.5 percent increase.
  • If 24 hours elapsed the rate fell to an average of 2.6 percent.

Clearly, expedience is one of the keys to success here.

So is Personalization

Let’s say you’re reviewing this article to learn how to sell ebooks on your own website. You have a customer who looked a series of books, put one in their shopping cart, but then didn’t download it. The first thing you’ll need to include is a strong, personalized subject line. Keep it short, simple and to the point. It’s too long if it goes over 30 characters. Include their first name and remind them the item is still in the cart.

SoHo’s Last Samba is waiting, Larry”

Spam triggers should be avoided, so leave phrases such as “Last Chance”, “Buy Now” and Click To…” on the drawing board. Your goal is to remind, intrigue and ultimately sell.

Effectual Body Copy

Include an offer that triggers a fear of missing out. This can be a limited time discount, a special offer of another book at a discount related to the title in which they expressed an interest, or some other perk they can only get with an immediate purchase.

In addition to introducing scarcity, this can also be a nice surprise for them. People love surprises. These can come in the form of unexpected extra discounts, special offers, loyalty benefits and free shipping. All are proven motivators. However, if you always lead with discounts, you could train customers to hold out to see if you’ll drop the price.

Include Testimonials

Peer validation is another strong motivator. Getting back to our book scenario, the message could include reviews by other readers who liked the book. Professional reviews are good too, although real person reviews tend to carry more weight with shoppers when it comes to building trust.

The Bottom Line

Writing an effective abandoned cart email includes optimizing the subject line and the body of the message to inspire immediate action. Include elements of personalization and add trust elements to reassure them they’re making solid decisions. You also have to make sure you get the message to the shopper in a timely fashion. Bring all of these elements together in a successful fashion; you’ll see a definite uptick in your sales.

How community spirit could save the National Lottery

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The National Lottery was founded by the government. It’s operated under license by the private sector firm Camelot, but its primary function was and is “raising as much money as possible for good causes”. It’s not a money-grabbing enterprise; 25p of every £1 it makes goes to good causes, 53p goes to the winners and the rest goes to retailers, taxes and admin fees. These “good causes” cover everything from financing independent films and sports teams to upkeep and maintenance for local gardens and museums.

If the National Lottery is so clearly about community, why is it so commonly seen as a private, almost selfish, experience? This is a question the National Lottery itself has been asking through its new advertising campaign which might not have the answers, but could transform its image. Because it’s this public perception that could be responsible for the recent fall in lottery ticket sales. The National Lottery’s campaign, coupled with new ways of playing the lottery online, might just help rehabilitate the brand, and keep it relevant for a new generation.

Online lottery syndicates bring players together

Players have traditionally entered the lottery by picking up a ticket at the corner shop or the supermarket. Thanks to the internet, this has changed. As well as playing the many different games available on the National Lottery’s website, players can use social media or lottery syndicate websites to buy tickets together.

A lottery syndicate involves groups of people chipping in to buy a number of tickets and sharing any winnings in proportion to how much they initially contributed. Though these can be formed offline, websites like Lotto Social connect those who want to join a lotto syndicate with like-minded players.

Knowing that you’re taking part in the lottery at the same time as (and in conjunction with) other people counters the perception that lotto is something people engage with as individuals. It also helps restore the community aspect that the National Lottery itself sees as so important to its reputation. And, importantly, the increased odds of winning will more than likely drive more players to take part.

The National Lottery’s new ad campaign rebrands winning the lottery

Think about the last time you read about someone who had won the lottery. They were probably pictured posing with a giant cheque and a bottle of champagne. Maybe there was a shiny new car in the driveway. This image of big-spending lottery winners has come to overshadow what the lottery was meant to be about: making a difference to the lives of ordinary people. It didn’t help that one of the National Lottery’s first winners blew his entire fortune on a wild spending spree.

The National Lottery’s new campaign of “grounded” ads challenges the public’s perceptions of what a lottery winner looks like. The first advert—a two-minute spot with the strapline “Amazing starts here”—highlights the day-to-day struggles of a Scottish fisherman and his family back home while he’s at sea. Upon his return, he discovers he and his wife have won the lottery, and she’s bought a large (but not comically large) detached house within sprinting distance of their old one.

Speaking to Campaign, Camelot’s Head of Brand Marketing said this new strategy was about showing the lottery was about “security, not champagne and diamonds”. As well as demonstrating the concrete, realistic difference the lottery can make for winners, the new campaign is intended to prove that players can “make Britain better by buying a ticket”. This could be through the National Lottery’s charitable efforts, or simply by helping a humble fisherman’s family find a new home. You might not win every time you buy a ticket, but someone will.

Whether these efforts will have an impact on ticket sales is still an open question, but without a doubt they help bring the National Lottery back towards what it was meant to be in the first place: a community-facing organisation that brings people together to raise as much money as possible for good causes.

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