Topic: "Most lottery winners go broke after few years" - page 10. (Read 1747 times)

There are a lot of things to consider in a situation like this. The fact is many  may have fallen or been a victim of it in the long run however I'm certain it's not a general thing. Sometimes the way people spend money is anchored by how they pre determined their spending before they actually got the funds in hand to spend. The fact is many jackpot winnings come from a very thin margin of luck and as a result they actually didn't see it coming.

This means that some of them literally spent those funds wastefully because they had no plans for it before hand. However many people will still settle for the opinion that it all still goes down to personal discipline.

Be it as it may, lottery winners would always want to play again and that's where the discipline to not spend all the money won on more lotteries, instead of to invest in something meaningful, is a luxury that many may not have in their brain.

Hence why education is an important factor when it comes to critical thinking mostly as it concerns ones well-being and finances, and from the cradle, financial literacy should be a core subject so that when these kids grow up, and get lucky with such huge winnings from any channel or endeavor that they are involved in including gambling and lotteries and investment success, they do not get carried away by distractions in the form of impulse buying or bowing to pressures to spend from those around.

The media may have much ills to say about lottery winners or even about playing it, still it announces winners and some end up doing well, better than others too.

What’s the point of your topic OP? Are you just trying to point It out? A lot of people are probably doing lottery and it’s just the hail Mary that they have to win. The jealousy doesn’t have anything to do with winners losing everything after a few years. It just shows that They are more satisfied, With what they received.

I wish you could cited the academic literature that you have posted OP on the first post.

News stating lottery winners went broke sound more absurd than news saying lottery winners are doing well, because nobody expects someone possessing millions of dollars ever having financial difficulties once again in their lives. And as we can see, absurd news tend to awake more curiosity from the public, generating superior traffic and views. It's similar to the technique used by newspapers of being sensationalist on their front page. That is how they sold their product.

Now with internet, there isn't much difference, as the model is still pretty similar. Moreover people like shocking news, with disastrous tendencies. The fact someone is doing badly awakes more interest from the public than someone who is living a marvelous life. Unfortunatelly, human beings feed themselves from other people's misfortunes.

Distinctin, mirakal and Frankolala:

Did you 3 read only that headline? I literally explained that those are common beliefs, but according to the studies, in most cases they are false.

We are obviously talking about jackpot winners here. No one refers a $10 winner as a "lottery winner" ruining their life because of it.

And you are assuming that winners are obsessed of buying enormous amounts of tickets until they are broke again. That's not based on anything but your assumption about it, meanwhile actual academic studies about it are contradicting your feelings about it.

And this is also propaganda but created by leftists who don't want to admit that to grow your wealth in keep your wealth you actually need to work your ass off.

For everyone who is again rich, their life is just standing at a desk with nothing on their mind just dictating left or right or enjoying life on their yachts, as you could actually run a company like that, but that's just the usual propaganda from the guys who have never actually ran a business in their whole life. Hundreds of businesses and top companies go down every year, millionaires and billionaires go bankrupt, why would it even happen if it's so easy to keep being rich like the left envisions?

Start your won company, be forced to spend twice as much time at the job as your workers, bet your entire wealth and your family life on succeded, and then say people who are in charge of some major business shave no worry in their whole life.

If you don’t have financial knowledge and self-discipline, whatever wealth you have gained, if you don’t have long term plans and goals for that, it will suddenly vanish in time, and live again with your poor lifestyle.

They say if your financial status has level up, don’t change your lifestyle but rather increase more your sources of income. Don’t grow your expenses, but rather increase your savings. Otherwise, if you follow the opposite path, you’ll see yourself embracing poverty again.

I hate to say this but this is indeed true. Not just for lottery but even for those who have turn instant millionaires from other gambling jackpot prizes. One factor I’ve seen is that, these people believe in instant money. They dream to become rich and wealthy, and so they resort into gambling, particularly lottery where prizes are extra huge.

And because of that, now that they have money, keeping it that way and even maximize generating more money seems like too hard for them. Because it becomes instant for them, then most likely losing all of them will be instant as well, especially for those people who have no skills and expertise, but just rely on waiting for their luck in gambling.

The statement is false but what you're saying is false too, statistically not everyone who bet on lottery is winning any money so they just lose whatever the amount they spend to buy the tickets and it's not going to make someone broke but if someone is obsessed and starts buying enormous amounts of tickets with the belief that they can make money are going to broke and I remember one person did that who simply buy tickets for all the money he made through wages and at the end he didn't win anything at all.

This is not just about lottery winners alone but what happens to someone in the habit of not having the idea to grow wealth. Like we have also had the stories of footballers who turned broke after their active years playing and earning big while some invested wisely.

There is also the side of getting money not planned for and in the case of lottery, I think it is always the situation because winners tend to believe they will win more and so they become carefree of what they have won. Most times they never take a break from the winning but rather increase the lottery stake.

I've heard a lot of stories about people who won the lottery or win huge amounts in gambling, then later became broke, all of the stories wouldn't be lies. Most people that hits huge amount of money unexpectedly that are not financially educated will waste the money eventually, whether it's from gambling, inheritance or gifting, they won't think of investment, they will only remember the luxury lifestyles that they never had.

Becoming rich is more easier than staying rich, if a poor person hits one million dollars unexpectedly and his immediate priority is to buy a flashy car, move up to an expensive neighborhood and begins to enjoy luxury lifestyles, before long the money will finish. If he can't sustain the lifestyle, he'll come back to poverty and will be mentally worse off than before he won the lottery. Invest huge amount of money and buy whatever you want from the ROI.

What's usually their expectations?? That 'em diggers stick to them after the gold has been exhausted? that has never happened and if anyone is having an expectation of a change on that, it'll fail. You don't spend your whole money clubbing, partying and grooving with some set of people, expecting them to have your back when you're broke... Infact, the money the cash is deposited into your account, you're automatically supposed to change your lifestyle, limiting the number of people that sees you and vice versa.

Some of them would often say "Well, I don't want my friends to feel like I was influenced by the money I got from my wins, thereby kicking them aside.... Yes!!!! Let them do whatever they want. Some false accusations is better than going broke cause your friends would do the same as well
No, you don't.

That's not entirely wrong, because from what I've seen with my own eyes, most lottery winners go bankrupt because they use their money irresponsibly and carelessly. This is because many lottery winners do not have good financial management, or environment, or bad traits that make them tend to spend their money without thinking about the long term of it. But I think it comes back to each individual, there are also those who have succeeded until now in managing the money they get from their lottery winnings.

On the moment that you do hit up lottery or simply becoming rich on an instant then the primary thing that comes up into your mind is to buy up all the things that you had wished for in the past or something that you cant afford. Primarily you will really be thinking up on purchasing a car, house and lot, tons of travels and buying useless things until the time that they have lost everything on a short period of time. They will really be having those kind of regrets on the moment or time that they will be seeing that they have slowly trying out to sell their possessions just because they dont really have more money.

It is really just that a wasteful thing if they will really be having that kind of behavior but majority of them do get blinded on the money that they have gotten. Yes, we cant be perfect but it would really be that impossible that you cant be able to find yourself having that kind of realization or awareness at least that you do really need to make use of that winning amount into more proper way and something that sustainable.

It is really that hard to control that greed on the time or moment that you will really be handing up a huge amount of money. It will really that make your extreme greed on which it might be resulting for you to play
even more or doing gambling because you are really that trying out to hit up another jackpot but in most cases you do end up on being broke.

When you lack financial management, you will end up lavishing whatever amount of money on you. This the same reason why lottery winners might get broke after some years because they didn't work hard to get the huge amount of money in their possession, and lack how to manage such huge amounts of money since it came unexpectedly, and it's their first time. It can happen to any gambler and not only lottery winners.

It is called stigma, and it is very common when comes to gambling and the effects it could have to people who do not know how to manage their own money and their own finances. I think the rumors on lottery winners being unhappy or unsuccessful after their got their lucky jackpot was rather inspired because of a handful of true stories of lottery winners and all got extrapolated from them, turning a couple of isolated cases into a urban legend, which does not have much of a scientific base to support itself.

I also like how OP pointa out rich people are rich because of they were in the right moment at the right place and in the most of the cases were born to the rich family in the first place, it did not have much to do with hard work and finance management. It is possible to become rich from investing and business creation, but it is not the norm in this world we currently live in.

I won't be surprised that a lottery winner can go broke. I have seen mighty men fall because of one or two mistakes along the line.

Some, get carried away by the wins and spend money unwisely. While few others get into a life situation that makes them spend the necessary money on medical attention and other things. I know of a friend who won huge in sports betting. At some point in life, he became very ill, and he had to fly himself all around to get cured, the pain is he did not get cured and he used 89% of all he had. Sold his house, his cars, and crumble his business just to live. RIP, Ferdy.

But am what saying here is that many things can be a reason why people get broke after winning a lottery. It's not all about them being careless or poor management of the money. No one knows tomorrow this is why we need to pray for better days.

I think this should not be about jealousy or propaganda. Anyone that wins a lottery should see it as a way of notifying them to conscious of how they spend the money won. There is probability that the lottery winner might want to waste money on other lotteries or even gambling and betting. But if such a person have it in mind that there is possibility of going broke, he can avoid what can make him regret later in life.

There are cases where the winners end up miserable. I have watched a documentary on this, and these people are exceptions to the rule. There's one story about a guy who won a lottery and thinks his money is endless and starts to spend on luxury items and is very generous to people around them. They are intoxicated with so much money that they wake up one day with nothing left. Too much money can ruin you.
A high percentage of lottery winners' are living a good life since they educate themselves on how to propely keep their money, while others want to live the life they keep on spending until there's nothing left.

Playing the lottery first and foremost is like a filter. It increases the likelihood of someone being financially illiterate. Not because it's the cause but because people that play are just probably not educated enough to know the downsides. Most lotteries have a ridiculously high so called house edge. Whereas blackjack can have a house edge of under 1% lotteries have a house edge of 50%!

For every dollar players put towards lotteries, only half of that money goes to rewards. The rest is marketing, salaries, executives level payments for companies etc. In a competitive market there could be games with more competitive edges but most lotteries are legal monopolies.

Just wanted to say, don't expect lottery winners to be geniuses in managing finances.