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Nasty stat, this

Coin Toss's avatar - shape barbed.jpg

In his book The Five Lessons A millionaire Taught Me, Richard Paul Evans wrote that a study showed over 80% of lottery winners are bankrupt within five years.

Crazy

KyMystikal's avatar - 1457224010054

I believe him!!!

Coin Toss's avatar - shape barbed.jpg

Wonder why that is?

What? 

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This is only indicative of the essence of what mankind is. In a fast paced, super-size it society, helping every poor soul that knocks on your door, without money management will lead to a self destructive state and deplete the money and soul.

If I had a choice, I'd rather never win the jackpot if I knew ahead of time that at the end I would lose it all. To me that feeling would be ten times worse than winning it in the first place. What you don't know, don't hurt you.

Zoozie's avatar - back

It's true. Majority of the lottery winners are low-middle class and do not know how to manage large amounts of money like that.  Normally they go beyond broke and end up worse off that before they win the lottery.

So many people think they will be happy when they win the lottery or fall into a large amount (inheritance, etc.)... those people do not change.  Happiness comes from within, not from an amount of money.  Sure they stress of paying your bills is eliminated, but you have a ton more stress due to the amount of money you must deal with now.

One of the bad mistakes is trying to hand out money to everyone around them and buy,buy,buy,buy like that money is going to be there forever.  If I won the powerball today, you can bet I would be leaving the state as soon as possible and move far away.  Stick the money in the bank and live off the interest for at least a year - give me time to wrap my head around it all.  Yes, I would set up TRUST FUNDS for my nieces and my own children - not to be touched until they are at least 25 or older (or for college).

I would then start putting the interest into a charity organization that I would create during my year of "hiding"... its a tax write-off for one - and the other is you MUST give back in order to reap the rewards!

A 20,000 foot mansion is not on my agenda.  Living comfortably the rest of my life is.  Having the freedom to sleep in, pay bills on time, read books, travel, walk on the beach, watch the sunset drinking coffee.  Then watch out - 'cause after that year, I will probably develop more businesses to generate bigger tax write-offs and continue to grow that money.  Who in the world needs a million dollar painting hanging on their wall?  Geeeeeeze

 

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You're right Zoozie, A 20,000 foot house wouldn't be on my agend either.

More like a 100,000 foot HOUSE. LOL

The paintings, Hummers and diamond rings are all just showing status, nothing more nothing less. It's to show the person's societal level of achievement. There are numerous examples of that in the animal kingdom. What dominating male will impress the female, either with the most colorful plumes of feathers, or a perfect symmetry of a nest.

truecritic's avatar - PirateTreasure

Zoozie

That is how some of the lottery winners went broke...by starting businesses that failed. Be careful, when you win it!

Zoozie's avatar - back

LOL truecritic - you said it exactly "WHEN" I win it, not if.  I already have a mind set of winning, just don't know when it will happen.  As far as businesses go, we own various businesses in our family and I own some personally - none of us have went bankrupt as of yet.  But we are also very tight with our money (or conservative).  Sure you can lose a ton of money when you start a business, but if you have the knowledge before hand... the statistics go way down on failing.

tntea's avatar - Lottery-059.jpg

I would continuing living where I am  and driving what I drive..

I see that winning the jackpot would make a huge difference.

 

I personally know a man who is a small business owner , who is barely getting by each month with his business, who once was a millionaire.  He downsized completely because of some trouble with the IRS.. however, he has said many of times, that happiness is only a state of mind, he doesn't remember being any happier when he was going to Vega, traveling around the world, than he is right now watching his business sail forward.

 

So with that in mind, I dont money will really make a person happy.

KyMystikal's avatar - 1457224010054

I'm going to get a double wide on 26" spinners and have hydraulics on it. I'm going to have the fattest trailer in the park. lmao

ROFL

Coin Toss's avatar - shape barbed.jpg

The Missouri lottery website has some great information on it under "If you win".

 

konane's avatar - wallace

I'm going to get a double wide on 26" spinners and have hydraulics on it. I'm going to have the fattest trailer in the park. lmao

ROFL

    I Agree!        Green laugh  Green laughGreen laugh 

johnph77's avatar - avatar

In his book The Five Lessons A millionaire Taught Me, Richard Paul Evans wrote that a study showed over 80% of lottery winners are bankrupt within five years.

Crazy

Something left out here. Minimum amount won? Jackpots vary in size. And few lottery winners win jackpots, therefore the amount won isn't about to make one rich in the first place.

If you're talking a minimum of a million dollars, look at it this way - a nice house in a reasonable middle-class neighborhood can't be had in most areas for less than $100K, and some places where real estate prices are vastly inflated can run five times that and more. new furnishings naturally go with that. And, of course, one or more new cars.

Point here is they might be financially broke without money in the bank, but they're probably a lot better off estate-wise than they were before they won.....

gl

j 

Coin Toss's avatar - shape barbed.jpg

He was talking about multi-millions I think, like the powerball guy in West Virigina.

 
And no, not better off than before winning, but bankruot.  

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a better question is winners below 10 million can end up 0    it would be harder with more then 10 million

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