For example, imagine that there are 6 people and salary of each person is $1000. They determine via coin flip who is the 1st, 2nd, 3rd, 4th, 5th and 6th. First gets $6000 in the end of the month, in the next month, the second gets $6000 and in 6th month, the 6th person gets $6000. You may ask me how do they live for 6 months without a salary? Family members take care of them. Too many people work for fun because sitting at home is boring for them but they don't have enough money to have fun too.
Oh, this is what is called salary lottery in your place? I was actually thinking of something else but your explanation made me understood what you meant by it. This is something popular everywhere and not only salary earners take part in this. We kinda call it cooperative or some call it contribution, as everyone has their understanding to it and to whom you’re talking to about it and how the person knows it is called.
When engaging in salary lottery, you’re not advised to use all of your income into it. If you earn $1000 monthly, you can put $500 into it and use the remaining $500 for upkeep and every other thing you’ll need for that month. Depending on your expenses monthly, this should determine the amount you’ll put into it without causing disruption in the process when already started.
Mostly, this is done as another form of savings, maybe saving to buy something, a house, a car or anything it could be that while saving little by little won’t encourage you to keep holding on to the money because you’ll likely spend it. So this allows you to have a target every month and you won’t add that money to your expenses and always set it aside for the contribution until it’s your turn to pack and use it for the purpose you joined the salary lottery for. It is a good way to save money and highly recommended if you have trusted people to join.