What Percentage of Lottery Winners go Broke?
Playing the lottery is an activity done by many individuals. While someone plays regularly and hopes for the best, many people have won the lottery without being regular players. Luck is different for everyone but you surely need it since you have dramatically low chances of winning.
However, winning the lottery puts you in sweet trouble. Imagine waking up being unbelievably rich, with a fortune that is almost impossible to be made. Sure, you are thinking about all the things you can do that you didn’t have a chance at before. But there is also a dark side to this story which is being shown by the large percentage of lottery winners who go broke relatively fast.
Besides going broke, there are other things happen that could be avoided. That is why we have made this article, to show you some things that you can do to remain rich, and prevent certain bad things from happening. That way, if you win the lottery, you will not be a part of the percentage that has lost everything, but stay on top of your game.
The percentage of people losing everything
By various reports coming from all around the world, the percentage of people who have lost everything even after winning the lottery is estimated as high as 75 percent or higher. However, going broke is not the only bad thing that can happen. To some people who have won such an amazing price, their whole families fell apart, and there were situations where people have lost their lives.
Why does that happen
A person that wins the lottery is probably not familiar with huge amounts of money. For example, if we head over to lottonigeria.com, you’ll see that the GG World Lotto jackpot is about 1 million dollars. Converted to Nigerian Naira, that’s 414 million.
You can imagine that not many Nigerians know what do to with 414 million Naira.
Naturally, people start spending that kind of money with no care in the world and living lavishly. There’s nothing necessarily bad about that, but if the person starts wasting money on depreciating assets like cars, failed businesses, etc. they can quickly lose all that money.
How to prevent situations like that
Prevention of these situations from above is the key thing you will need to do if you happen to win a lottery. For that reason, you will need to stay on your ground, and not throw everything just because you can. By thinking of your future, and securing your family with everything they need, you are on a great way to avoid falling in under those 75 percent.
Don’t brag about it
As we have mentioned above, you should keep your winnings private. By talking that you have won such an astronomic prize, you are putting yourself in danger, since extortion or other problems will come right away.
For that reason, if your country or the lottery platform allows you to stay anonymous you definitely should. It is understandable that your story is interesting to others, and that journalists will try to convince you to talk. However, make sure you give yourself enough time to manage everything, and then do what you must.
Don’t take everything at once
There are options in the way they withdraw. You can take everything at once, and do what you want with your finances, or let the state secure your winnings, and get paid over your whole life.
If you choose the first option, you are more prone to waste everything you have gotten in no time. But, you have all your rights to do whatever you want with your finances.
In case you have decided to go with the second option, you will surely improve your financial situation, however, you will not be able to spend everything at once. This will help you to save your money for a longer period, which can be essential if you don’t know how to manage your possessions.
Don’t manage your finances on your own
Another thing that you should consider is getting a professional to advise you about your financial moves. Since you are not familiar with such large financial management, you are more prone to waste your money on things you don’t need at the moment. This will set you back, and will surely lead you to bankruptcy.
If you have a financial advisor, they can direct you to things that you should do, and prevent you to make dumb moves. By preventing your purchases, they will save your money so you will be rich for a longer time.
Cover all your existing debts
If you win a big prize, that can solve all your financial issues, the first thing that you should do is cover all your debts. In addition, you should not think about going into debt ever again.
Don’t give away all your earnings
Winning a large sum can bring a lot of benefits to everyone you would want to share with. However, you should not be the financial backing of your friend’s ideas. That way, the business may fall, leading you to a loss.
Instead, you should help them only if you think there is a chance of prosperity. For example, if your friend needs a certain amount of money that means nothing to you at the moment, that has the potential of changing his life, you should do it.
In addition, you should help the people that have always been around you. However, just because someone is a part of your family, does not mean that you are obliged to help them. It is up to you whether you will give them a part of your fortune, or not. But, you should understand that helping others is a quality characteristic, and in this situation, it would not cost you a lot.
Stop wasting your money on things you don’t need
When you finally got the chance to purchase everything you ever wanted, that is where most of the problems come. The fact is, you don’t need all these things. Why would you need ten brand new cars, when just a couple of them can satisfy you.
To control your spending, you should set yourself a limit on the amount you are allowed to spend in a year. This will help you to prevent spending everything in a relatively quick time.
You should use the money that you have gotten to build something for yourself and your family. Get involved in business, travel the world, maybe move to another country. Do everything that makes you happy without exaggerating. That is the only way of using your money nicely, and being happy at the same time without becoming broke in a few years.
