Topic: "Most lottery winners go broke after few years" - page 5. (Read 1747 times)

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.

No need to shout, but it will be impossible for a person to hide that he is rich now. More or less relatives and even neighbors have an understanding how much a person earns. They dont know the exact amount, but all they clearly see that person earns little, average or above average. If they see that I drive different car, new expensive gadgets and electronic appliances, clothes, they will understand that something has changed in a positive direction in that persons life. No one in clear mind would sit, hold and watch on his lottery winnings forever. At the same time people who will always ask, leech or expect expensive gifts, appear or hang out around lottery winners always. I would say that this is a nuance that a lotter winner must bear with.

People, who buy lottery tickets are mostly bad in maths, so as result they mostly spend their prize silly enough.
Of course there are different situation, someone can get win ticket as a present for example. Or it is possible that some winner can invest his prize.
I don`t care about these winners and their life after win. But i`m sure that there are people, who increased their life and who returned to the beginning.

That's exactly what it is, they are not that financially literate because they haven't seen this kind of money before. So it's either they hire someone to manage it for them, which I think could be very bad specially if they got the wrong set of people to help them. Or they simply manage it for themselves, which is also gonna be a problem as they are not that familiar with the intricacies of money matters.

And it's really up to where they are going to invest on it, they could be one some properties. But from what I read, there are really a lot of lotto winners who went broke in dumbest ways,

When a person isn't used to big wealth and all of a sudden winning big money and turning himself wealthy makes him stunned. The person finds difficulty in managing the new wealth. Soon after such wins, they themselves find themselves in a higher position and find it bad to get suggestions from other people. They get into a we know everything attitude, which is wrong. We should have the acceptance mindset, because when we don't know how to manage wealth, what we need to do is seek the support of a financial advisor, and through him we can make all the financial decisions. This will let us learn through him, and gradually we can have control over it. This will help in avoiding losses after big wins from the lottery. So, it is all about the financial management that makes a person move to the higher position or makes him slide.

Gambling addiction usually occurs when there is always a scenario of near success. The belief of near success syndrome most likely was coined out from that belief. But there are still a whole lot of people who cannot get addicted to gambling because they find losing annoying. So, they rather not get involved. One of the few things that can also cause this sort of belief is the culture/religion that the person was being raised in.

But to crown it all. The mindset of every person actually takes the person to certain heights. Your mindset towards gambling will tune you into a gambler or not. Secondly, your financial education or awareness. The persons knowledge about financial management will also play a role in the persons financial decisions.

If there are secret strategies, that might be the bugs I guess. Because even if someone claims that there are some strategies that are secret to them and they're able to prove that it works, sooner or later the casino will figure it out why this one gambler is able to win such money and continue to do it on a streak. So, there are no secret strategies especially in lottery as you have said that it is a luck dependent game and there's no way to rig that unless the casino itself will do something with its algorithm and then rig the winners on their end. There's a lot of possibilities of what they can do since they know the developers, they are the owners so there is nothing impossible for them.

What you said could be one of the reason but here is what I think contribute to major downfall of jackpot winners. Jackpot isn't something that comes everyday like rain, in one's lifetime you may get it one or two times because the probability of winning it is very high but many people are ignorant of this. As soon as they win the money, they get too excited and mismanage the money with the hope of they are going to win another one again in the future.

Many gamblers just gamble and don't have any plans and when you haven't see some kind of money in your life or money you have never seen before, it's very difficult to manage such amount of money. It takes knowledge and wisdom to manage wealth, if the highest amount of money you have ever win in gambling is $10k and then you one day win $1M, you will go out place and wouldn't know what to do because you never had suck amount of money in your life, that's what many jackpot winner experienced in my opinion.

Greediness and lack of financial education will turn everything black for those lottery winners. I have seen that they're a lot but they just exposed themselves when they have nothing anymore so people can take nothing from them when they have told their stories.
It's true that they have mentioned that it's all about greed and what if if they win again the lottery this time so they bet once again until they didn't notice nothing is left.

BUt make it sure that it wont really be that totally on the state that you have lost everything before you do make out some realization, so that you will still have the chance when it comes to recovery.
We do know that on the moment that people do make out those realizations is on the moment that they have almost nothing or have come back into their original state or before they have won the jackpot.
Its normal that we do have that kind of shock on the moment that we do win up those life changing amounts that you havent been able to get a hold of into your entire life on which the main priority
that comes up into your mind is to buy all the things that you do like or into those something that you do able to see on point. Getting investments and business will really be your least priority on this particular
time since you will really be that confident that it wont easily depleted out.

It is really that a sad thing that they will really be wasting up those opportunity that does come once in a life time. If you have wasted it up then there's no way that you could be able to hit it back.
Some people will really be that keep on betting or gambling on which they do believe that they could be able to hit another one on which this is really that a very wrong mindset
and will really be causing up such mistake.

It's not a conspiracy theory, it's just a general trait of gamblers that won lottery. They make stupid decisions that make them go broke and before they realized, the money is gone. It's not all of them but most often, they are like this. If I recall correctly, I saw one guy went to collect his lottery money from a casino and he wore mask on his face and when he was ask why? He said he is trying to avoid people and family members from seeing him, this are the people that you don't see go broke after winning a jack pot.

There is this particular guy I know in one area I was staying in back then, he was a tricycler and luckily, gambling was kind to him and he won huge amount of money that time. The next thing that guy did was getting married and building a house, he never invested the money neither did he bought a new tricycle for his business or buy to lease out so he can be independent. He is back to the street doing the tricycle business and struggling again, back to where he started and hoping to hit another jackpot, delusional

Acknowledging your mistakes and getting  back up is the best decision  any could take, giving up is never an option. Am glad to hear that he returned to doing his previous work and hope he finds something  better after then. lots of gambler whom after hitting the digits real hard  and spent it all irresponsibly often end up a total mess, and because families  and friends  may abandon them after he must have spent all he got, and critics may constantly bounter on him which could stare up depression and probably lead to suicide.  There is always a room for change and those who understand this would always make good use of opportunity even when all odds are against them. Well I have also encountered cases of gamblers who quite gambling after spending their jackpot irresponsibly back to gamble and other unnecessary things.

The gambler after making huge money should take some rest,if they play with the overconfidence after a big win in the gambling.The two types of result will happen,one is the gambler will loss the balance holding money because of the overconfidence because of the recent big win.Second option will be the gambler again make the big money with the experience of the previous game.The lottery winner mostly loss the funds because of they don’t know which is best option to inverse in the trading.The random usage of the money won from the lottery will make the gambler to loss the entire money at the end.

Non stop gambling, dealing up with those vices, girls, unwise spending on different useless things then those winnings that you do have will completely be that useless or something that will really be that depleted
in a short period of time specially with gambling on which loses could really be that just too big on which in common sense where spending is too much then there's no such thing about unlimited fund.

Its really that important that we should really be having that good management into those winnings so that we wont really be ending up on getting broke again or would be going back into our past
situation in terms of finances. People do usually make up some action on the moment on where it is really that too late or the damage is already that severe.
Once you do win up some big amounts then always secure on having investment and business at least.

And I think the media has blown this out of proportions, those who win the lottery and then this guys spend it on everything and go broke after a few years.

But there could be smart winners as well, who think of their future after their winnings, and could have been investing it and now still living those generational wealth that they have gotten. Or maybe some of them really invest their winnings, but because they don't have the financial literary, they invested it on high risk, thus losing the money in short amount of time.

I believe it has nothing to do with someone being an idiot, but most people in this world aren't very good with money, especially if they suddenly get a lot of it. You tend to be better with something if you have been doing it regularly or at least have done it a reasonable number of times, but if you do something for the first time, you won't be able to do it accurately. The same thing applies to money.

If you have never had a lot of money in your life, the chances are that if you manage to get a lot of money either from gambling, a lottery, or any other means, you will most likely not be able to manage that money properly because you have no experience in managing large amounts of money.