"Most lottery winners go broke after few years" - page 8.

PX-Z

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Quote from: _act_ on November 25, 2024, 11:30:30 PM

Quote from: PX-Z on November 25, 2024, 06:48:40 PM

It's money mismanagement, this includes because those who bet lottery are lower middle class or even lower having no financial literacy. Due to sudden rich and sudden change of lifestyle, most of them got broke lol. Then people around them suggest for investments which having no history or experience of investment many got scam, losses, and so on and so forth.

But can you proof this? Financial literacy is not about going to school. It is not also about being rich. Even poor people that know what suffering is and have experience it before will know how to manage money. I think before something like this should be said, it would be better if it is backed by proves of life events of people that won a lotteries.

Instead of "no" financial literacy, I guess it should be "lacking" financial literacy; either way, it's almost the same for those people who are in this state. Many lottery winners in this state are not used to managing large sums of money. Without a solid understanding of saving, budgeting, and investing, money is often spent carelessly. This post is not intended to mock them because my family came from this state and yet we managed to lift up and go out from that. I don't need actual proof; with all the news of lottery winners, especially in my region, it's actually common here, well not at all, just like I said most of them came from lower middle class or even lower.

Here are some articles in my area related to this, some are not documented.

A construction worker - https://filipinotimes.net/news/2017/10/17/filipino-lottery-winner-went-broke
A utility worker - https://filipinotimes.net/feature/2018/03/26/pinoy-lotto-winners-end-losing-winnings/

Here's some stories from Reddit in my local language too, most winners who are professional have positive outcome on their winnings while those who are not becomes more unfortunate.
https://www.reddit.com/r/Philippines/comments/14k3b3a/do_you_know_anyone_who_won_the_lottery_in_the/

Zlantann

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Quote from: _act_ on November 25, 2024, 11:56:28 PM

Quote from: Zlantann on November 25, 2024, 11:49:03 PM

Going to school could be an advantage to people who want to be financially prudent. They can easily gather information about investment since they have been exposed to it in school. But there is no guarantee that going to school will make one a financial literate. People who didn't attend conventional schools can seek advice from business consultants, learn business and make good financial decisions.

Also I have seen someone that went to school, become rich and later become poor. Also I have seen some that his parent died young, did not go to school but made it and become rich in life. Education is beyond schooling. There are some people that might not go to school but are so much financial literate without the help of anyone.

Your observations are correct. Education is not a guarantee that you will maximize opportunities. There are many uneducated people in my area who are successful businessmen. Financial education is beyond schooling because it requires some habits that schools might not teach. There is a tribe in my country that are very successful in business but most of them are not literates. They acquire basic financial education through apprenticeship. But my point is that if someone combines education with some basic financial traits, he might become more successful. Education has the ability of opening the minds of an individual to explore more opportunities.

_act_

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Quote from: Zlantann on November 25, 2024, 11:49:03 PM

Going to school could be an advantage to people who want to be financially prudent. They can easily gather information about investment since they have been exposed to it in school. But there is no guarantee that going to school will make one a financial literate. People who didn't attend conventional schools can seek advice from business consultants, learn business and make good financial decisions.

Also I have seen someone that went to school, become rich and later become poor. Also I have seen some that his parent died young, did not go to school but made it and become rich in life. Education is beyond schooling. There are some people that might not go to school but are so much financial literate without the help of anyone.

Zlantann

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Quote from: PX-Z on November 25, 2024, 06:48:40 PM

It's money mismanagement, this includes because those who bet lottery are lower middle class or even lower having no financial literacy. Due to sudden rich and sudden change of lifestyle, most of them got broke lol. Then people around them suggest for investments which having no history or experience of investment many got scam, losses, and so on and so forth.

Sudden wealth syndrome is a psychological condition that has made many jackpot winners misuse their money. Since they are not prepared to handle such big amount they end up squandering it. However, there are people from poor backgrounds that have maximized their wins. They achieved it by getting sound investment and financial advice and refusing to live extravagantly.

Quote from: _act_ on November 25, 2024, 11:30:30 PM

But can you proof this? Financial literacy is not about going to school. It is not also about being rich. Even poor people that know what suffering is and have experience it before will know how to manage money. I think before something like this should be said, it would be better if it is backed by proves of life events of people that won a lotteries.

Going to school could be an advantage to people who want to be financially prudent. They can easily gather information about investment since they have been exposed to it in school. But there is no guarantee that going to school will make one a financial literate. People who didn't attend conventional schools can seek advice from business consultants, learn business and make good financial decisions.

Poker Player

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Interesting article linked by the OP, above from Forbes, which is a reliable source in this regard, although this does not guarantee that what the article says is right, although it does have research behind it. I liked how he questioned the statistics, and nowadays statistics are the most used tool to lie. In any case, without going into whether the position of the article is right or wrong, it is good to know this opposing opinion that I was unaware of.

Personally I believe that there will be some people who will end up being ruined by the lottery in a few years, as there have been well-known cases, but from there to the 70% that is usually quoted there is a long way to go.

_act_

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Quote from: PX-Z on November 25, 2024, 06:48:40 PM

It's money mismanagement, this includes because those who bet lottery are lower middle class or even lower having no financial literacy. Due to sudden rich and sudden change of lifestyle, most of them got broke lol. Then people around them suggest for investments which having no history or experience of investment many got scam, losses, and so on and so forth.

But can you proof this? Financial literacy is not about going to school. It is not also about being rich. Even poor people that know what suffering is and have experience it before will know how to manage money. I think before something like this should be said, it would be better if it is backed by proves of life events of people that won a lotteries.

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Quote from: maydna on November 25, 2024, 06:00:59 PM

If they can not manages their win money from the lottery, they will not have a good opportunity to have a better life. They will just use the money for the thing that they don't needs so they can not prepare to have a better future. Perhaps they don't have financial skills and don't know what they should do and just waste the money. They should realizes that with the wins money now they can have the opportunity to have a better life and they must use the money wisely so they can changes their life to be better.

Lifestyle will greatly influence and also all of that will be based on how their attitude in managing or arranging finances, someone when getting large amount of money is also very easy to be influenced by various entertainment and so on until they forget that money is very easy to spend.
There are several incidents of people who suddenly become billionaires because they win the lottery but they become homeless or even beggars in just few years, this is an example that learning to manage money and arranging lifestyle is very important.
In addition, when money starts to run out, they definitely think about betting again to get the same win, but in the end they lose everything without leaving anything.

Julien_Olynpic

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This is an interesting topic and an informative article. Perhaps we have all been captivated by myths. However, in the article I came across the fact that most of the studies were done on surveys of lottery winners with small winnings. For example, one German study claimed that the average winning amount is 60% of their annual income. This is actually a small win. And it cannot significantly affect you. Most likely, 99% of people would not quit their job because of winning an amount equal to 60% of their annual income. Articles about losers-lottery winners are based on cases of large winnings by people who made hasty, ill-considered decisions, quit their jobs without money management skills.

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Quote from: o48o on November 25, 2024, 10:11:56 AM

Or "Most lottery winners end up being miserable"

This are both false beliefs, but somehow majority of people believe them to be true. While in reality, most lottery winners end up doing better then ever. And that they are bettering the lives of themselves and their family.

I agree with you that the topic is just opposite to the reality. I have a friend who won a lottery here in our place and his life turn around 180 degress, i mean from being an average person he turned into a millionaire here in our place and until now he continued to live a life where most of us can't live and being miserable is very far. But there may also be some lottery winners who will end up broke if they don't know how to handle their winnings.

Darker45

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This is obviously an exaggeration. There are probably many lottery winners who became poor, but not most. And probably not after a few years only.

There was a time when the lottery jackpot in my country went as high as a billion in our local fiat. That's around $20 million. The lottery has become the talk of the town. Even television programs feature real-life stories of people who won the lottery. Indeed, there are many of them who mismanaged their finances and went broke.

So, there's truth to stories of lottery jackpot winners whose rich life is short-lived. But, again, not most of them.

GreatArkansas

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Quote from: o48o on November 25, 2024, 10:11:56 AM

(....)

1: Jealousy:

Winning can happen to anyone, even people who least "deserve" it. So our subconscious mind reasons it for us in a way that makes as satisfied. If we believe they should pay a price for winning, it's easier to accept our own loss. It can be partying too much, getting robbed or being betrayed by closest friends, or being miserable and lonely. If we think that there's some terrible price to pay for winning, that makes losing seem like a better option in a long run.

That's why if I ever win the lottery soon, I will never tell anyone, even my closest friend or family member. It doesn't mean that I don't trust them, but that's the kind of person I am, I am the keeper of secrets.
Plus this kind of secret is also risky, it involves money and it's prone to other people that could harm your life. That's why sometimes being lowkey is better.

PX-Z

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It's money mismanagement, this includes because those who bet lottery are lower middle class or even lower having no financial literacy. Due to sudden rich and sudden change of lifestyle, most of them got broke lol. Then people around them suggest for investments which having no history or experience of investment many got scam, losses, and so on and so forth.

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Some of these beliefs are not just being driven by jealousy or propaganda but are based on what people see with their eyes regarding those who have won big amounts from the lottery; there is no lifetime belief in something without a real fact backing it up to keep the storyline going.

Some lottery winners might end up spending their money wisely, but some don't ever make the right decision on that; they always lavish the money the same way it comes in with the belief that more will come, and if someone is close to such a person and has witnessed that on different occasions, we can't blame them for thinking that lottery winners always end up going back broke.

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Quote from: o48o on November 25, 2024, 10:11:56 AM

Or "Most lottery winners end up being miserable"

This are both false beliefs, but somehow majority of people believe them to be true. While in reality, most lottery winners end up doing better then ever. And that they are bettering the lives of themselves and their family

Those who believe in this are the people who are not confident that they can manage with the huge amount of money that they've won on a lottery; this is a fear of responsibility of handling something huge, so they resort to making reasons that lottery winners end up being miserable, which is not really true based on facts that are supported by data.
If we are betting in a lottery, you have to change your mindset that you will be good if you win the jackpot.

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Quote from: maydna on November 25, 2024, 06:00:59 PM

If they can not manages their win money from the lottery, they will not have a good opportunity to have a better life. They will just use the money for the thing that they don't needs so they can not prepare to have a better future. Perhaps they don't have financial skills and don't know what they should do and just waste the money. They should realizes that with the wins money now they can have the opportunity to have a better life and they must use the money wisely so they can changes their life to be better.

Most of the time, soon after the lottery win, they tend to have a change of lifestyle, which is the biggest reason that easily makes them go bankrupt. In particular, there are incidents in which they spend on luxury things that aren't necessary for their life. When they got big money, they weren't able to manage it properly. If they do it in the right way, it helps them throughout their life. First of all, they need to spread the money on different investments and keep the remaining as backup. One needs to increase the number of income streams, which is the right way to multiply what we have. Some people do it wrong and spend it on gambling with the plan to multiply it. Few get lucky, and the majority end up losing.

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If they can not manages their win money from the lottery, they will not have a good opportunity to have a better life. They will just use the money for the thing that they don't needs so they can not prepare to have a better future. Perhaps they don't have financial skills and don't know what they should do and just waste the money. They should realizes that with the wins money now they can have the opportunity to have a better life and they must use the money wisely so they can changes their life to be better.

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Quote from: o48o on November 25, 2024, 10:11:56 AM

Or "Most lottery winners end up being miserable"

This are both false beliefs, but somehow majority of people believe them to be true. While in reality, most lottery winners end up doing better then ever. And that they are bettering the lives of themselves and their family.

To be fair, there are indeed people who win the lottery and eventually go broke. There are people that tried to work hard. Maybe they got a business but it failed. Which is why they go broke. Meanwhile, there are people who never even tries. They just went straight back to casino again after winning such huge amount of money.

However, I do know people who win the lottery and end up doing really well for themselves.

Quote

1: Jealousy:
If we think that there's some terrible price to pay for winning, that makes losing seem like a better option in a long run.

That makes sense. Admit it or not, we would all rather win the lottery than to work ourselves off to the bone. Alas, it doesn’t happen to all of us so how do we cope? We just think that we’ll be better off without winning the lottery. That we can get there even without it.

But in reality, life would be a lot easier if we just win the lottery.

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Quote from: o48o on November 25, 2024, 10:11:56 AM

Most lottery winners go broke after few years Or "Most lottery winners end up being miserable"

Can't really tell, because in here, they don't disclose any piece of information about the winners. They could either be a real person or just someone from the inside.
If they are a real person, I think they have greater chances of becoming financially stable rather than being broke. I mean they won millions. No person in sane mind would spend all of that carelessly and expect to go broke in a couple of so years. Of course they'll put up their own business and quit their jobs so they can become their own boss. Also, one this I noticed that most people who are a fan of buying lottery tickets doesn't usually engage in any other form of gambling. Maybe because they don't have enough time for it.

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Quote from: o48o on November 25, 2024, 10:11:56 AM

Or "Most lottery winners end up being miserable"

This are both false beliefs...

They are false beliefs because they are based on assumptions. No real survey has been carried out to justify the statement.

It will be truer if the statement is that "some lottery winners end up being miserable/broke.". People who promote this belief have come across more negatives than positives, and it can be as a result of those who have been able to achieve financial stability from lottery wins being private and reserved about it for reasons best known to them.

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Quote from: nimogsm on November 25, 2024, 03:35:58 PM

Quote from: blomen on November 25, 2024, 10:25:36 AM

I think the reason why people think this way (at least me) is that someone who buys a lottery ticket is usually someone who doesn't know how to manage money anyway, or who doesn't understand math. it should seem illogical for someone who knows how to calculate statistics and earnings to buy a lottery ticket. because no matter how much money he invests, he will never win in the long run. the x dollars he invests will definitely return to him less than x. (I am ignoring the luck factor here, because that person should also ignore it).

I also agree with you about jealousy, probably no one of us has ever won the lottery and probably never will. but that doesn't mean that others haven't. people can't handle it and in a way console themselves by saying “the person who wins will probably lose their money again anyway”

I don't agree with the thesis that the one who buys a lottery ticket doesn't know how to manage money. Since a lottery ticket costs about the same as a cup of coffee in a cafe, it doesn't even matter to a person in a big city who works. Buying a lottery ticket is more about getting a quick thrill and believing in a miracle for a couple of bucks, why not?
It's another matter to buy them systematically, not sleep at night and believe that the next ticket will definitely hit the jackpot. There should be a measure in everything.

Lottery ticketsand it winning are just based on luck, and no one should think that there could be lottery if there is removal of luck factor from lottery events, because applying statistical hypothesis could mean not arriving at anything close to the original content and make up of lottery game's, so for that we shouldn't try to take out luck from our discussions.

No logical thinking person will ever buy a lottery ticket because there is no colaration between statistics and lottery results and tickets since the numbers are just picked as lucky numbers and considered winning numbers without any formula being followed to make the process logical and statistically current.

Topic: "Most lottery winners go broke after few years" - page 8. (Read 1747 times)