Topic: "Most lottery winners go broke after few years" - page 4. (Read 1665 times)

In the end depending on how to use money, it has nothing to do with anything when the money is in hand and is fully ours, a large lottery victory might trigger the winner to double it with more betting and a greater number of bets in order to win the number of victories which is much bigger.
But if we speak wrong and right in this perspective in my opinion it is subjective because maybe some people believe because they do it and see them themselves in their environment.

Becoming rich does not mean spending everything at once and it does not mean that you should lend to everyone who asks for it. I know cases where people immediately started spending everything they earned when they found a good job, sometimes they realized that they did not need these things, and there was not much benefit from them, but this is a desire to get something that you did not have before. I have also heard many times the statement that lottery winners very often lose everything they won, but I think each case is individual.

The gods gave them a surprise gift but apparently there were people who were not brave enough to handle such a huge gift, feeling like they were a dry well and were lacking water, the prize for them was a stream of fresh water but due to not having touched such cool water for a long time, they easily wasted it and once again, aridity began to appear. However, among the series of bankrupt people, there are always successful members who win the lottery and live peacefully as planned, perhaps people always need scenarios for such unimaginable events.

A years ago I used to be regular lottery buyer for almost three years and during that period has managed to win two times, very miserable sum in fact which didn't cover my expenses on this endeavor after all I have to conclusion that lottery is a bad egg which fails more than often.   That's why I have turned  my  attention to gambling/betting  all the way through. My wife still continue to buy lottery tickets but all in vain.

Here in my country it's a common story because some of them are just a one day millionaire for those first time to have a large scale of money one of their first thing to do is to spend those money to the things they can't afford before now upon doing this repeatedly they didn't notice that they spend too much money. Another factor is the people around them of course to felt they are already rich now they share tons of money to the people to tell them that they are above to them, I guess next is the addiction instead they make an investment to a business and create a asset they focus on the liabilities so onwards they end up broke again

Interesting point. It makes sense. I would rather like to read how and why did a person lose such big money instead of doing fine because it sounds more interesting to read.
We often tend to read stories on how a person made it big from poverty and vice versa and ignore stories where a rich person has made more money.

Not the case in our local winners for lottery. Most of them got broke after buying too much luxury things while the maintenance and taxes just to maintain the luxuries burn their profit down slowly until they got broke again.

Poor financial management is always the reason why lotto winners here got broke after few years.

Only few lottery winners manage to stay rich because they invest on businesses to gain more profit since they already have the capital.

Interesting... I never thought about it like that. And indeed, many people may play the lottery only because they want to pay off their huge gambling debts. And such a picture may indeed be relevant, because in the country where I live, every second person has an open loan that needs to be repaid.
And a large percentage of these people pay off the loan with a new loan. I have never understood such people and never will.

Yea, every lottery winner spent that money in different manners and it has never been proven beyond any reasonable doubt that the life of all lottery winners turned worse after their big victory. It's only the ones that misused the opportunity that will be affected but most of them still made good use of the money to better their life and they are very much successful even after several years of that winning.

Usually on which people would really be only mindful on trying out to find ways on the moment or time that they've seen their money isnt really that much anymore or shall we say that it is already that depleting.
They will really be that trying out to find ways on how to make it grow at least but its already too late specially when things are already that too much on the moment that they've been spending into those useless things. Regrets do always come at the end and this is something which is really that very usual. If you arent that good when it comes to money management, doesnt matter on where those funds or money came from
then you will really be just that eventually losing it all back and you wont really be able to do something but to sell out again into the things that you have bought, thats if you have bought something?
What if you have lost it all back to gambling? Definitely there's nothing left with you and you will be going back on becoming poor. We have tons of similar situations about lottery winners becoming broke after hitting up some life changing amount. It is really just that too sad that they do end up on such situation just because of mismanagement of those funds. Well, it cant really be denied that there are things on which we do really want or like to purchase or buy specially on the moment that you do have tons of money then those will really be your main considerations on the moment that you do have the money. Buying things before
making investments until the time that you had notice that your money is really that getting lesser and lesser until it goes zero.

I think being broke is already part of our lives and a lot of us experience it (even the rich people) I believe? Being broke must not be the perfect term to use but I'd rather say that most of their money got only depleted and I think it is only normal because you have lots of it and it doesn't make sense either to just stock them and watch them in the corner but you will use it on the things that you are always dreaming of before.

It is also true that being broke and being miserable are linked with each other but I think if we will stay to be positive, we might not experience that kind of feeling. I think that most lottery bettors are poor people, who are believing that this is the only way for their lives to change and so most of the winners are also a former poor people and as a former poor individual, you might be lacking on financial knowledge to stabilize and grow your wealth.

This could be the reason on why many of the lottery bettors are ended up being poor again after some time but there are still some who are lucky to continue their momentum. Then, there are who got wiser. Even though they lack on financial knowledge, they just use their money to study it or hire a person that are expert on it, to help them.

Maybe not many people who can used their win money for the right things for their lives. But many people can not change their life to be better because they just use the wins money for having fun without making a plan for their future. And yes, I agree that is about the persons who can use the lottery winning with right for their life. If those people don't care about their future, they will not do anything and just enjoy the money until the money is gone. But that will be wrong for them because they can not change their future to be better while they have the big money in their hand. We must remember that so when we can hits the jackpot from any gambling games, we can use the money for the right thing in our lives.

"Most lottery winners go broke after few years" actually something like this could happen on lottery winner when he spent his money to buy anthing lets say you won staggering amount of 1 million dollar and you never touch 1 million dollar on your entire life and decide to spent all those money right away and drain all the wishlist item for years.

But there are also a person decide to spend it on charity and buy the usual stuff not the glamour one and invest almost all the money from the lottery to build a passive income strategy and can live happily after it.

Money can reveal the true you

Most times it's not been about the fact that these people won the lottery and are not good financial custodians but just the jealous and hate from others. And that is why when they eventually spend it well and are doing well, they aren't been spoken about until something isn't going on right. There are lottery winners who have been able to turn their lives around for the best resulting from the funds they got off winning and some ahs also not used their well enough so it's just about the persons and not generally about every lottery winners.

No matter how useless one might appear to be and irresponsible, there is a certain amount of money that could be able to set you on the right track. I also agree with you and hate it when people generalise lottery winners to be spenders who don't have future plans and investment plans, which makes them end very badly, I mean sending the money lavishly.
 
 
Some people already have plans on things they want to invest in but lack the resources to do that, which is what lottery winnings bring to them. Some make good use of the opportunity; if there are numbers of those who spend wrongly and later end up broke, I will say the percentage of them is lower than the ones that become successful.

I think jackpot winners or lottery winners will be spending their won money on gambling after the big win. That is the single most important reason why they will continue to be in a net negative and not spend the rest of their lives on a yacht.

Most of them already have a big debt to pay back, so the rest of the money ends up being so small that it does not make much of a difference after paying back. So what else would they do with that money? Gamble it of course and thus renter the cycle.

I do agree that news of lottery or jackpot wins tend to fuel the potential gambling mindset. It can be controlled on a personal level to not gamble.

This line of thinking is true to some degree, especially since many lottery winners aren't really used to handling that much money before, hence it becomes hard for them to control the urge to overspend because they think their huge money will not run out.

This is why it's important for huge jackpot winners to immediately get a financial advisor as soon as possible, in order to guide them where to spend their money and how to make it grow. If I ever win a huge sum of money from somewhere, I'd rather pay a financial advisor a couple thousand dollars for every consultation rather than blow out all my winnings in a span of a few years. I know I'm a frugal person, but I do know that when I have the urge to buy something, I will do it no matter the cost which completely counters my frugality.

Circling back to the original gist of this that the majority of lottery winners aren't really going broke after a few years, I believe that this is true right now since everyone can easily learn where to invest, how to save, and there's pretty much tons of options to save money. You also have these experienced financial advisers that turn to Youtube to make contents that will easily help you manage your money for free.

Also, I think it also helps that most lottery bettors are middle-aged or older, as they understand the importance of money and how hard it is to earn them. Make a Gen Z or a Gen Alpha a lottery winner, and you'll most probably see them overindulge in luxury stuff in order to brag in social media without thinking the long-term implications of their overspending.

Of course, the desire of people to believe en masse that winning only makes people more unhappy is easy to explain. Deep down, we all don't like the rich, and want to believe that their affairs are not so good. This is normal for human psychology, so the brain calms itself down by saying that it can't do anything about the current financial situation. This is our nature. That is why many people enjoy reading about how someone lost millions and became an alcoholic or a drug addict, etc. And at the same time, everyone is sure that winning would be a step towards happiness for them.

This is just a false believe for anyone that will agree to it. Every lottery winner is never the same. For some of the lottery winners that I have seen in my area, their life became even better after they won the lottery.

It's possible to say that some persons would not know how to manage the money when they win it but most of them are still doing better after all.

This doesn't make any sense, or Is this based on that simpsons meme? Because misinformation is most used tool for lying.
Statistics are either based on accurate data or false data, and in latter case they aren't even statistics; they are just mis- or disinformation.

Anyway, many people in here want proof / sources why this belief quoted in the topic is wrong, even though there are links to studies in the only link in the first post already. Also many people seem have came here explaining why most lottery winners do go broke, and what i can derive from that, is that they either haven't read my post, or didn't understood it. Some people are even linking those articles where people lose money "as proof", even though i already explained why more of these articles exist.

Seriously, read that first post with a thought.

And for some people that actually read it, there's one recurring theme which is valid, and that's financial responsibility / financial skills.

True, but this doesn't mean that most winners would suck in finances, and they have to be special kind of ignorant not to hire an accountant or service that looks after their interests and money at this point. Because no one has time for keeping track their taxes, expenses and income, if they have several investments in real estate and stocks / cryptos. And more you win, less you have to worry about going broke.

Some people really just need the extra push to get rich, even if they are financially responsible, just like many rich people have born with that advance. That push can come in form of knowing right people, so they get a good job, as a cheap loan, a heritage. Or just being born in the right time at the right place and family.