Everything Wrong With The Lottery
Everything Wrong With The Lottery
The lottery is a great way to try your luck and make a quick million, right? Sorry, but the lottery is not all that it’s cracked up to be, even if you win. Now, before you leave the page assuming I have nothing good to say, I’ll explain my reasoning.
70% of Lottery Winners Go Broke
Yes, you did read correctly. Seventy percent of lottery winners go broke. Fast, too. Why? Because near everyone who win automatically go on a shopping spree, buying new cars and a super expensive house. All of a sudden, all that money disappears. Once they realize how much of the money goes to taxes and other expenses, it’s too late.
If you take the jackpot all at once, you lose nearly half of it. The tax cut on the $415 million powerball win if you take it all at once to spend to your heart's content, is a whopping 35 percent. So, the winner would only get $269.7 million. Still a large sum, right? After federal taxes, it’s $162.9 million.
Now, that is still a lot of money. That doesn’t last long once you get a million dollar house and a Lamborghini. Add on a private jet, and all of a sudden, that $162.9 million is now bearing quite a dent. Now, consider insurance and property taxes, fancy restaurant dinners every day.
When people win the lottery, they assume the money goes a lot farther than it will. It is usually a stark contrast to what they had in their bank accounts before. Usually, they feel the need, if only for a public image of what they can do with their new millions, to spend. They sometimes quit their jobs because with all that money, working is beneath them.
Also remember, that the more money you spend, the more you have to spend in taxes. All of a sudden, they don’t have any more to spend. Studies also show that lottery winners are more likely to declare bankruptcy within three to five years, than the average American citizen. I’ve just explained why, in case you were wondering.
Only Six States Allow Lottery Winners to Remain Anonymous
We’ve all seen superstars go off the deep end. Fame can get to ones head if they aren’t careful. A lot of times, Lottery Winners have the same issue. Many people eat it all up, some do not. Still, even the most unlikely candidates succumb to the public pressure and lose themselves in the process.
Don McNay, author of Life Lessons From The Lottery, says that many lottery winners later struggle with suicide, depression, divorce, and other emotionally strenuous hardships. Many put in the spotlight, ruin their children’s lives as well. Jack Whittaker, winner of $315 million, lost both his daughter and granddaughter to drug overdose.
A lot of times, Lottery Winners have to deal with friends and relatives want their fair share once word gets out about the millions won. All of a sudden, many distant relatives, and old high school friends show their faces once they hear about the person’s winnings. Not all of them know how to deal with it.
Many big time lottery winners say that they won’t end up like past winners. Most end up eating their words, or not even realizing what their life has become. Social pressure is a powerful thing, and people do not realize just how hard it is to stay true to themselves.
Only six states allow lottery winners to remain anonymous. Meaning that the other forty-four states can pepper the winner’s trail with reporters and such, causing exponential tumult in the person’s life. Many lottery winners are not disciplined and just don’t know what to do with themselves once they win. Except for buying everything under the sun and letting their newfound fame and fortune get to their heads.
A Lot of Winners Neglect to Hire a Financial Guide
Something many Lottery Winners and pro athletes have in common, is that they don’t have much experience on how to handle large sums of money. Which is another reason why many go broke.
Winners are usually so caught up in buying everything they’ve ever dreamed of, that they forget to hire financial guidance. They don’t realize that you have to invest your money intelligently if you want it to last.
Would you rather be a millionaire or a multi-millionaire? Because if you learn to invest, then you can be set for life. Sadly, many forget to do so. Budgeting is forgotten, which is scary. If you win the lottery, the first thing you should do is invest the majority of the winnings and let it become an even larger sum. Then, you would be able to keep your money.
Many just want to grab the money all at once in a ‘lump sum’. Though, the smarter option would be to take it in annual payments. Equal amounts for thirty years. It would give one more patience and less tendency to splurge.
Not to mention, remember, the odds are not in anyone’s favor when it comes to the lottery. Buying a ton of those tickets is not a smart investment. The average American spends $207 annually on lottery tickets. That money could have been invested in the stock market, or put in a savings account. Both of which are much more reputable ways to make your money into more.
The lottery is unreliable and an unintelligent investment. It is more known to ruin one's life instead of improving it. It is most certainly not all it’s cracked up to be. It encourages splurging, and doesn’t teach one hard work ethics. The majority of people that make it big, don’t remain so and end up going broke. I rest my case.
© 2018 Alyssa Hartman