Topic: "Most lottery winners go broke after few years" - page 6. (Read 1665 times)

I have read or heard some really crazy stories about lottery winners and what happened to them after that... But the craziest story of all is about that guy who won the lottery and shortly after that his wife left him for a younger man. He had two children, one of whom died in a car accident with some nice & fast car, and the other child got hooked on drugs and overdosed at some point. I don't know if this is a true story, I heard it a long time ago, but if it is, winning the lottery totally ruined this man's life.

It seems best to hide the big win from everyone and take the money a little at a time... if one can do that.

If that's the case the it's not good to win huge! But, jokes aside there's chance that the ones who win big might live a good and happy life. Way better than most others, because money really means a lot and it can solve many issues.

I think that among those who win huge casino winnings there is a high percentage of divorces and damaged relationships with relatives. Just a big win is definitely a life change, and any gambler will look at his wife, who has gone through many trials with him, and think: why don't I get a young girlfriend instead of her?
After all, life has changed now, and now everyone can go their own way. In general, I mean that big wins are a test for any relationship in couples.

This is why financial literacy needs to be taught in schools or communities, such as bitcoin, tech communities or entrepreneurial communities. It's not enough to work hard to earn money or rely on luck; being able to sustain and multiply that money is crucial.

Many people learn how to make money, get clients, or secure a good job, but few know how to manage, sustain, and multiply their money. This is why some people believe that lottery winners always go broke because they act on inpulse, which is not entirely true. While it's true that some lottery winners squander their winnings, there are also those who invest and manage their money wisely.

For instance, I know someone who won a lottery but didn't invest or save the money. As a result, the money was quickly finished in a matter of months. This is why it's essential to remain calm and composed after a major win, rather than letting excitement lead to impulsive spending.

It's wise to create a budget and allocate the money wisely, setting aside funds for trips, investments, and savings. Financial literacy and income management are essential skills that can help people make the most of their money and avoid financial embarrassment. Winning a huge amount of money in the lottery only to be back at zero in five to ten years is a messy scenario that can be avoided with proper financial planning and management.

Agree much. There are actually those people who always put negativity into other people’s luck and winnings. Instead of making these people get inspired, but with jealousy, they end up predicting the opposite outcome. However, most of the winners have brought positive changes into their lives and even help their friends and relatives to prosper as well. But for those who were not wise enough in spending their money, but still risk them all into gambling again, they become broke and had never recover at all.

How do you prove that both of these statements are false? I have seen many articles describing stories of lottery winners who didn't end up with a happy ending.

I think people believe the opposite, that lottery winners will get rich and happy.

Initially this is true, but after a while, the opposite effect begins and in the end, these people find themselves in a worse position than before winning the lottery.

If you play with negative thoughts, setting yourself up to lose, then why play at all?

The casino promotes (and spends huge budgets on it) that gamblers will get rich and this is what spurs people to play. There is no reverse propaganda. No budget will be enough to counter this.

Are you saying that the stories with the bad ending of gamblers are fiction, and the real truth about happy and rich gamblers is deliberately hidden and concealed from the public, so that they are not envied?

I only remember one of these and that is the old 19 year old garbage man from United Kingdom who won huge amount. The reason it is still in my mind is that he spent all the money on drugs, whores and alcohol, after 10 years of such life at near 30 of age he come back to work again with a garbage truck as he spent all the money in 10 years. I think this guy is one of the few who got broke but didn't give a shit about it while many others have gone broke and even ended as homeless or worse, this guy got back where he left and that is why he is a winner for me.

In my city and my country I have seen many people get completely broke in a few years after a lottery win.
I am not surprised at all. Most people doesn't understand nothing about money and economics. They are ready just to waste more money of what they have achieved.
They have no idea on how their money can works or how they can just save this amount of money. Of course I can't blame anyone.

Except the lottery organizer has a law that all jackpot winners will be used for publicity, I don't think anybody will know that I have won such a huge amount. I have seen cases where winners are shown on television and other platforms with mock cheques to advertise the lottery and show that they are reliable. The winner becomes a celebrity, and relatives and friends become parasites, seeking avenues to suck them dry.

Someone once advised that if you win big in gambling, change your location. if possible, you can move to another country and start a new life. It will save you from criminals and unnecessary beggars. I am not saying that you should abandon your friends and families, but you can help them from anywhere you are.        

Well, I didn't say that you need to shout about it to the whole world. You know that money loves silence. And especially when you suddenly get a large sum of money, take it for granted, and not as some people think: easy come, easy go. Besides, if you know how to say "no," then on ordinary days, they won't bother you, knowing that you are not greedy but very reasonable and understand that lending money means losing friends. Tell them that you don't want to lose anyone.

In some way, I would be unhappy if I large amount of money suddenly fell on my head. Because I know that some people who I know will act like I owe them, I must share, or it is my obligatory to be their wallet (meaning from now on, I will be paying everywhere because "I am rich"). I will get a special attitude from them to me and towards my family. I think you have heard stories when all of a sudden long distance relatives appear and act like they have been with you all the time and you are best friends. Or stories when people stress on "if I had an orange, I would share it for sure". I guess that is one of the reasons why lottery winners get broke.

I know a guy/have a friend, who was not believing in Bitcoin for years, and said in 2019 that it is to late to buy. When I had told him after few years, that my investment made x10, he has started frequently talking about sharing. That if I share now, that everything will return in a large amount.

Indeed, in this life myths are very often associated with life, of course for those who believe in certain things, things that happen because of myths are common, whether they are related to gambling, wealth, poverty and so on, but mythical things that happen in gamblingnot all of them, only certain ones.

Likewise for those who have just won the jackpot, one day later the jackpot winner dies or has a fire and so on, but there are also those who are immune to the myth that when they win at gambling they don't suffer, in fact for years they still win.

For me winning the lottery or other types of games some of us can be affected by myths and some others can be immune from myths, I think not all lottery winners can fall into both myths.

I've read some stories about lottery winners who went bankrupt after a few years, but that doesn't mean they're some special category that doesn't know how to handle money, it also happens to people who inherited a great fortune or even to those who worked their whole lives saving, and then lost everything in the blink of an eye because they fell for some cheap scam.

The fact is that if someone is bad handling little money, it will be even worse if he comes into possession of a lot of money - spending without income and spending like a drunken millionaire never ends in a good way.

Usually those people spend crazily and they didn't think about that there's end point on everything they do. Now they became miserable because they didn't control their selves and let their greed to acquire those unnecessary asset just to flaunt their wealth.

I just remember this video where this lottery winners became broke https://www.youtube.com/watch?v=-CWJhr5bErU due to bad decisions they made.

Lots of similar stories like this you can find in youtube and hopefully future lottery winners would learn a lot from their stories.

Foremost, I am sure that everyone who has written in this thread will not be unhappy. This is a simple understanding of what to do with the money that suddenly fell on your head. Investments, proper planning, and development of further passive income, and only after that, the implementation of your plans on what to spend money on. But unfortunately, people act in the opposite way, which quickly leads to the fact that a lot of things are bought, without which it was possible to do before, and seeing this, a person thinking that a big win can be obtained again begins to play. As a result, it happens that he goes broke, considering the win a curse.

There are quite thrifty rich people, I think that everything depends on how they got this money, if wealth is achieved by their own efforts, then it will be valued more, if it is inherited, then the heirs spend it more generously. Money won in the lottery can be treated differently, this may concern the financial education of people, maybe they will immediately want to buy a good home and an expensive car, or maybe they will want to invest it, which they have long thought about but could not do because of small savings.

Totally agree on that. Great money is great power. "With great power comes great responsibility". People are irresponsible towards money. When people are poor or earn money hard, they count every penny, think about making a purchase. When they have great money, they are blind, and spend without thinking about tomorrow. Whenever they spend, they always consider that they still have a lot of money and each expense is nothing.

I can easily explain why this happens. And it is obvious that I believe that almost all lottery winners become unhappy people. The thing is that lotteries are not attended by people who invest money not in their knowledge and skills, but in chance. I mean lotteries, of course. And it turns out that the winners of these very lotteries have very bad money management. These people are simply not ready for such money.

If I were to win the lottery, my strategy would focus on long-term sustainability to avoid the common pitfall of going broke after a few years. First, I would claim the prize as a lump sum if that option is available. This provides immediate liquidity and avoids the risks associated with annuities, such as inflation or potential issues with the lottery company’s solvency. Taxes would be my first priority, ensuring full compliance to avoid legal problems.

After taxes, I'd keep the remaining funds within Mexico's financial system, where I live, and leverage proven fixed-term investment platforms that offer annual interest rates averaging ~14%. Diversifying across low-risk and medium-risk instruments would ensure stability while maximizing returns. A portion would be allocated to high-liquidity platforms as an emergency fund. I'd live off the interest while preserving and reinvesting part of the principal to capitalize on compound growth. (A little of spam here: USDT Investment Fund with BTC & USDT liquidity reserve. 10% Annually)

Using interest payments, I'd secure essential assets like a small but comfortable house and a reliable second-hand car, avoiding unnecessary luxury purchases. I'd continue working because staying productive is important for mental well-being and provides structure, additional income and a sense of purpose. Additionally, I'd dedicate time to hobbies and learning new skills while setting aside a small portion for charitable causes.

To protect the wealth, I'd invest in comprehensive insurance policies and maintain an emergency reserve covering at least 12 months of expenses. Legal planning would include setting up a will and trust to safeguard assets. Regular financial reviews and portfolio adjustments would ensure the strategy remains aligned with market conditions.

Finally, I'd set clear boundaries to avoid falling into the trap of unsustainable generosity or poor investments. Limiting the number of people who know about the win is critical to avoid pressure. This structured approach ensures me a financial security, a productive lifestyle, and avoids the fate of going broke, which unfortunately happens to many lottery winners.

Yeah so many things could be a reason why someone would get broke after having so much wining from any gambling, actually people tend to respond so many ways whenever they heard or see that someone who won a Lottery got broke because the first impression they would have is that the person is a careless spender without wanting to get a detailed information about such person before concluding, however let's just say for instance about the Ferdy you mentioned, don't be surprised that most people who doesn't no the story behind his death will be interpreting it in different ways without knowing that the man was using all his money to fight for his life, so in summary there are high cases and instances were majority of such broke results from careless spending but not entirely all.