6 (Too) Common Mistakes Lottery Players Do
Okay, okay, I get it! You won the lottery; you feel like you’re on top of the entire world right now. I understand it, but you seriously need to calm down – like right now. Take a deep breath; you need to maintain your sanity is these kinds of situations because one wrong step and BOOM; it’s all gone. Of course, when a lottery player wins, he/she starts yelling around, grabbing unwanted attention, drinking their guts out, buying, buying and buying stuff they don’t require. Fancy cars, fancy dresses, glittering gold, luxury trips… oh well. But that’s not it. There are other mistakes most (and I mean a majority) lottery players love to make. Here are the top 6 common mistakes:
I’ve won a million dollars! I’m bringing it all at home! Woohoo!!!!
Ah, a big mistake if you think you’ll be bringing home a million dollars. “Oh, but I won a million dollars, it’s mine! All mine!” no, not really. Aren’t you going to pay anything to the state for allowing the lottery programs? You won a million only because your state allowed it, so you’ve got to let go… wait for it… 50% of your total winnings! Yeah, that’s right – a friggin’ 50%. So it would be a complete mistake to think that you can invest 50% and spend the other 50% on luxury – you won’t have another 50%! If you think you’re going to bring home the whole check, be prepared for the surprise of your life!
“I don’t need professional advice; I can handle this myself, thank you!”
Oh, yeah, that’s another mistake. Lottery winners think that sudden wealth also gives them a few gifted years of being a financial advisor! I’ve personally heard a lottery winner say, “Oh, I can handle this – yeah, I mean, how hard can it be to manage the cash?” A few months later, he was down to a penny. How? Well, when you win, you have to hire a team of advisors – a lawyer, CPA and a financial advisor to help you create anonymity, and minimize estate taxes. As soon as a lottery player becomes a winner, all investments look profitable, but that’s not true. You have to hire a team to set you up for life financially. They will help you not spend your fortune foolishly.
“Don’t like this house anymore, darling. We’re rich now; let’s live to the fullest!”
Classic. This never gets old, I tell you. Most lottery winners give up their current lives just because “things aren’t the same anymore”. They quit their jobs, leave their friends to make wealthier friends, drink expensive beers and drive luxury cars because they can afford it. Smart lottery winners know that this is a mistake and should be avoided if you don’t want to be poor a few years after the big money rain. Smart winners maintain their lifestyle, they continue to work, and they keep their friends because less lifestyle change means a more balanced life.
“I think I’m going to buy a house, no, maybe a car… what about the future then?”
Some lottery winners have no idea about how to use the money so it will last them a lifetime. They don’t have a financial plan all set out before claiming the jackpot. You might not know it yet, but a large amount of money can be spent quickly, and before you know it, it’s all gone. Just like that. This is another reason why you need a financial advisor so he or she can tell you how to use your money, so you’re never poor again.
“Oh my god, I never knew I had an aunt until I found out I won! I must be lucky!”
Ah, the honey-effect. All of a sudden you will be the darling of everyone, including the aunt you have never heard of! You might think, “Oh, they remember!” oh, but they don’t. They came by because you’re now the only person that has some money to lend! So don’t be fooled by fake emotions and hugs and kisses – it might all be just drama to get to your fortune. But most lottery players don’t realize this and make the mistake of allowing anyone and everyone, whether they once cared or not, in their lives. What happens then? Prestige bites and they can never say no. “Dear, I need some $60,000 for a very profitable investment; it’s all… blah… blah… blah…” and you give. Your friend’s friend needs some money to buy a car, you give. Your wife’s ex-girlfriend needs money to buy a small house, you give. You give, you give, and you give. Don’t make this mistake.
“The bank to keep this large amount of money? No, I’m keeping it home because I’ve got common sense!”
Sure, sure! Sometimes lottery players make the mistake of letting their common sense take a long vacation only to return to a board that says “house for sale.” If you have a lot of money, don’t you think banks are where they should stay? It’s just an example of how common sense takes a long road home! Large amounts of money can cause lots of stress that can lead to unhappy endings, both personally and professionally. Remember not to change yourself, think rationally before making any decision and don’t forget your life before winning the jackpot.