How To Manage Life After Winning The Lottery

By Jesse Veluz

If you think winning the lottery will be the answer to all of your problems — think again. Winning the lottery may seem glamorous, but acquiring sudden wealth can only be the start of a change in your lifestyle for the worse. Suddenly becoming wealthy can be harmful to your relationships, and may compromise your ideal thought of what happiness really is if you don't manage your winnings properly. If you don’t want your name to end up in the list of lottery winners who regretted winning the lottery, then read on and find out how you can manage life after winning the lottery.

Woman hid her Lotto win from husband and quickly divorced him. Judge says she must let him have all $1.3 million. Superior Court Judge Richard Denner determined that she acted out of fraud or malice. He based his decision on a deposition in which Denise Rossi admitted that she concealed her winnings because she didn't want her ex-husband "getting his hands on" them.

Read more: Ex-Wife Loses Big in This Game of Chance

There are lots of examples in which the lotto winners acted out of ignorance, selfishness, and stupidity that cost them the winnings in a bad way, leaving them where they started in the first place. Only this time, they'll be smarting from self-inflicted pain of not managing their lotto winnings properly their whole lives.

The National Endowment for Financial Education cautions those who receive a financial windfall to plan for their psychological needs as well as their financial strategies. The Denver-based nonprofit estimates that as many as 70 percent of people who land sudden windfalls lose that money within several years.

Read more: DailyFinance

Michael Carroll has blown a £9.7 million jackpot he won in 2002 (approximately $15 million at the time) and as of 2010, was hoping to get his old job back as a garbageman. At first, Carroll lavished gifts on friends and family, but soon started spending on less admirable causes: Cocaine, parties, cars, and, at one point, up to four prostitutes a day. "The party has ended," he told the UK's Daily Mail, "and it's back to reality. That's the way I like it. I find it easier to live off £42 dole than a million."

In the two weeks after Mr. Post collected the first of his 26 annual payments of $497,953.47, he spent more than $300,000. He acquired a liquor license, a lease on a Florida restaurant for his brother and sister, and a used-car lot and its fleet for another brother. He also bought a twin-engine plane, although he did not have a pilot's license. Within three months, he was $500,000 in debt.

Read more: TheWeek, WashingtonPost, TheRichest, Business Insiders, Toronto Sun

Next >>