Is it true that most poor people who win the lottery end up poor again?

Updated on : December 3, 2021 by Tom Fisher



Is it true that most poor people who win the lottery end up poor again?

It is very common in the US (I don't know of other places) for people to get rich and waste it all in no time. They are not just those who could win a lottery. Many successful athletes and celebrities do the same.

As someone else has already pointed out, managing money is a skill, and very often people who suddenly gain wealth, win the lottery, or suddenly become a star athlete or celebrity, do not learn that skill. I have personally met people of modest means who have received a “once in a lifetime” financial windfall, and have immediately gone and wasted it. I

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It is very common in the US (I don't know of other places) for people to get rich and waste it all in no time. They are not just those who could win a lottery. Many successful athletes and celebrities do the same.

As someone else has already pointed out, managing money is a skill, and very often people who suddenly gain wealth, win the lottery, or suddenly become a star athlete or celebrity, do not learn that skill. I have personally met people of modest means who have received a “once in a lifetime” financial windfall, and have immediately gone and wasted it. In a few months, or a year, even though they had a chance to do something lasting and meaningful with their money, they just squandered it until they were back in the same financial situation they were in before the windfall.

There are probably dozens of explanations for this common behavior, but I'll never be able to understand it.

Most lottery winners generally end up losing money. Managing money is a skill, and that skill will differ depending on how much money you are managing and if you are trying to make a living from it. Most people don't know how to do it right, or don't even have the skills to select a professional to help them.

Also, many people do not understand that there are many levels of wealth. They see some of their favorite celebrities and think that winning the lottery puts them on the same level. They don't understand that these celebrities have continuous income from waste and new projects.

There are many good and bad things about this kind of thing, but if you are careful you can minimize the downsides / downsides that come with winning the lottery.

The pros are:

  1. All the worries of not being able to pay something are now a thing of the past (this is if you make millions / hundreds of millions of dollars). Still, be careful with your money and spend wisely, no matter how big the money you made.
  2. If possible, only share this incredible news (outside of immediate family) with close / trusted friends who will stay by your side regardless of your situation. And that friendship and trust is valued above all else.
  3. you
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There are many good and bad things about this kind of thing, but if you are careful you can minimize the downsides / downsides that come with winning the lottery.

The pros are:

  1. All the worries of not being able to pay something are now a thing of the past (this is if you make millions / hundreds of millions of dollars). Still, be careful with your money and spend wisely, no matter how big the money you made.
  2. If possible, only share this incredible news (outside of immediate family) with close / trusted friends who will stay by your side regardless of your situation. And that friendship and trust is valued above all else.
  3. You can pay off each and every debt you owe and pay off your home mortgage.
  4. You can put your children in good schools / colleges / universities.
  5. If you have a family member who needs constant medical care, you can pay for it.
  6. You can also make a list of some charities that you can donate. Bonus if it's tax deductible!
  7. You can do proper home renovations or move to a better neighborhood and get a nice / modest home.
  8. You can take a luxurious vacation that you have always wanted to do.
  9. You can help close friends and family who urgently need financial help.
  10. You can set aside a good chunk of money for retirement later in life (just because you won the lottery doesn't mean you can quit your job). Some people still have the same job or maybe the job they want.
  11. If you never went to college due to money problems, you can use this money to go to school and pursue the career you always wanted. Consider taking financial courses as it can help you understand how to manage your money properly and understand what financial advisers are explaining to you.
  12. Make sure any financial advisor you hire will work in your best interest / make you money. Do not hire it if it will make money on a commission.
  13. You can save money for emergencies, such as medical needs, paying for auto parts, etc.
  14. As mentioned above, you don't need to worry about whether you can afford to buy something based on your income, you can just buy it outright. Just make sure it's what you want and don't buy it just because it's flashy or because every rich person has it.
  15. Make sure you write a will and keep it updated as much as possible. You can also breathe easy knowing that your loved ones will be cared for after you are gone.
  16. You can think long-term plans about what you want in your future and with a good and safe plan, you can execute it perfectly.
  17. * If you have a lottery pool with your co-workers, you can each contribute $ 5 or $ 20 each and this would help you get more tickets without having to buy a bunch yourself.

The cons:

  1. Depending on where you live, you may not be able to remain anonymous.
  2. People will feel entitled to your money and will come to your doorstep asking or asking for it in the middle of the mall / grocery store.
  3. Sometimes you will be harassed or threatened for your money.
  4. Your loved ones can also be the target of harassment / threats.
  5. You may have long lost extended family members (aunts / uncles etc) that you never met or never talked to and magically appeared (this also includes "long lost friends") asking for a brochure or magically who wants to reconnect with you. This also includes the separated immediate family.
  6. You will have charities from under the sun calling you and wanting you to give an amount X to charity X.
  7. You will have 'expert' people with an 'excellent' business idea. Also known as falling for a scam. Be very careful when dealing with these people.
  8. You may have an internal conflict with your immediate family over who gets what.
  9. One family member may want to spend massively and gamble more, while another would prefer to save money. This could also cause conflict within your family.
  10. Sometimes you can have family problems, like fighting because he / she has more than me, my family is suffering, you are obliged to help us, etc.
  11. Some people will see it as a personal bank / ATM.
  12. Some people may suddenly want to "hang out" with you for the wrong reasons.
  13. Sometimes the people who win the lottery go buying these big fancy houses / yachts / fancy cars etc. and in no time the money runs out.
  14. Sometimes people feel more unhappy with money because of the unnecessary attention it brings, and they end up destroying everything around them.
  15. * Like the pro, the downside to this is that you have to split your earnings with everyone who contributed. It's not that sharing should be considered a bad thing.
  16. You may have greedy / disgruntled ex-spouses who will show up after 10+ years and magically want half of your earnings.

In general, winning the lottery has its advantages and disadvantages. If you win (toast the non-winners in the hope that we're lucky!), Find out the following:

  • If you can remain anonymous in your country / state, etc., it will be a great advantage for you.
  • Under no circumstances tell anyone that you won the lottery. Wait until the money is in your bank account and 100% under your control and only then (if you wish) share this good news only with trusted family / friends.
  • While it is good to help the family, remember that you have no obligation to ease their financial pressure if they do. If they have bad spending habits that will likely put them back in the same financial trouble, they would end up being a financial burden on you. It is better not to have people like this in your life no matter how painful they may seem.
  • While it may be tempting to shout your good luck to anyone who hears you, keeping quiet is the safest idea. You don't know who will be listening.
  • Read all instructions on the back of the ticket. Check your country's lottery website and see what the rules are. I don't want to lose your winnings on a technicality. If possible, call the lottery office to ask them a few questions about the rules.
  • If you cannot remain anonymous, hire an attorney and help create a blind trust to accept the money on your behalf. This will keep your name out of the newspapers and only the name of the trusts will be displayed and not the winners. (Research this carefully before doing so.)
  • As a last resort, change your style of dress and wear dark sunglasses and collect your ticket in disguise. If you are asked to do an interview later about your earnings, wear a disguise in each publicity photo / interview. Hopefully this will minimize your recognition on television. Also remove any identifying items like rings / watches / earrings / bracelets / glasses etc.
  • Don't let anyone know that you won right away. Act like nothing has changed, be as normal as possible. Have your immediate family sit down and create a plan for what to do. In the meantime, look as normal as possible for a few days (ie grocery shopping, basically going to work on your day-to-day things). This will also give you some time to take in all of this. If you have close, trusted friends who can help you, let them participate if you wish.
  • If you can't remain anonymous but the media hasn't found out that you won yet, park your car a few blocks away as a precaution. This will allow you to make a quick getaway if your winning status is leaked before you are ready to perform.
  • Once all of your ducks are lined up and your plan is solid, then you can make your ad on television.
  • Beware of shady deals from self-proclaimed "experts." If it sounds too good to be true, it probably is.
  • Talk to many respected financial advisers. Ask the family for references or do some research on them. Look at all the reviews and make sure they have legal permission to practice and that they don't have a bad record.
  • Set up various obstacles for creditors or people who want to sue you. This will make it impossible for people to take money from you, knowing that you have a lot of money.
  • If you have children, set up college funding for them in the future.
  • If you never went to college yourself for money or personal reasons, but always wanted to go, you can use the money to go to school and pursue the career you've always wanted.
  • Splurge on yourself / family but modestly. Buy some expensive items you need and get back to the life you lived before. Or move to a more pleasant area but try to live modestly.
  • Try to live within a budget if possible. You may have a large amount of money, but thinking about where that money will be for your future / the future of your children is something you should never rule out. Save most of the money and live off the interest
  • Remember that sometimes your family / friends may turn against you / hate you because of your sudden wealth. Keeping hateful people like this in your life and that of your family is not healthy. As painful as it may be, cut ties with those people.
  • Invest your money very carefully and safely in stocks / bonds. Make sure everything is told to you in a very honest and frank way.
  • Pay any and all taxes related to the lottery. In Canada, lotteries are not taxable, but interest earned is taxable. I don't want any legal issues with that, so make sure everything tax related to the lottery is taken care of right away.
  • Try to live modestly. Just because you have money doesn't exactly mean that you need to live abundantly. This could attract unwanted attention. Living modestly can make you less likely to be bullied.
  • If you win, plan an escape ASAP and wait for the heat to die down. Hopefully when you return, everyone has forgotten you.
  • Make sure the finance teams you hire work to make money for YOU.
  • Never spoil any member of the family. Some people have done it and things have gone wrong for them.
  • Don't let profit go to your head and blind you to what's really important. Some people have lost it and they have lost everything and they have been left penniless.
  • Create a solid plan to protect your money and assets from any and all lawsuits (even false ones). Set up many barriers / barricades that can protect your estate / assets.
  • Beware of greedy ex-spouses. They may also seek you out to get a piece of something they are not entitled to.
  • DO NOT hide lottery winnings from your spouse. If you do this and then get divorced, the judge will force you to give half of your earnings to said spouse (I think that's what happens). If you won the lottery AFTER your divorce (with all papers and documents signed and fully and officially done), your ex-spouse cannot get anything. I am not a lawyer regarding this, so ask a lawyer about this, to avoid mistakes.
  • If you are being harassed by people, get up and move to another town / city or a whole new state. If you want, you can legally change your name to prevent people from tracking you down and harassing you. This can be used as a last resort.
  • Try to live within a budget. It can be tempting to buy all the things you've ever wanted, but making your money last will require a serious budget. As mentioned above, splurge on yourself within reason / buy some expensive items and then resume the life you had before.
  • Don't get addicted to lottery / gambling. It is true that the temptation to buy tickets in the hope of winning is fun, but remember that you are more likely to lose and win big. You can win very small fortunes or free games.
  • Don't spend too much on tickets. It is true that buying more tickets increases your chances of winning, but that means you have to spend more money.
  • Remember that buying more tickets does not exactly guarantee that you will win. It will increase your chances of winning, but you may not win the grand prize, but you will most likely win a few dollars / free spins and maybe a few hundred dollars.
  • Only spend what you are willing to lose. If you are willing to spend $ 50, just spend that. Set aside some money for those things and use it only occasionally.
  • If you feel like you are addicted to gambling or know a friend who is going down this road, ask him for help before it gets worse.

They call the lottery a "poor people's tax" because they are tied to the "hope" of a better future. But what they don't show is the millions they lost and didn't get a return on the money they spent on a ticket.

The problem is, if they ever win, the odds are worse than being struck by lightning, they don't know how to manage their winnings, and they get caught up in the winners' euphoria, making them think they have more money than they actually do. have. through.

The poor sages have a prepared plan of what they plan to do and make sure to turn some of them into

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They call the lottery a "poor people's tax" because they are tied to the "hope" of a better future. But what they don't show is the millions they lost and didn't get a return on the money they spent on a ticket.

The problem is, if they ever win, the odds are worse than being struck by lightning, they don't know how to manage their winnings, and they get caught up in the winners' euphoria, making them think they have more money than they actually do. have. through.

The wise poor have a plan in place for what they plan to do, and they make sure to turn some of those gains into a passive stream of income that will support them for the rest of their lives. That plan, if followed and not fooled by unscrupulous influences, will manage to ensure that they will never be poor again.

I even have a windfall plan that involves putting 75% of my earnings in high interest savings (which is our passive income stream and will not be affected for any reason ... 15% in speculative stocks to see what I can get. in return, AND the remaining 10% is for food, transportation and shelter (which is ours). The good thing is that I live in a country that does not tax windfalls. interest on my interest cash flow and I pay it and property taxes on a monthly basis. If I win the lottery,That setup will allow me and my wife to retire and enjoy the rest of our lives without fear of the money running out because we only intend to live on the interest generated by the windfall while the principal amount (75% of earnings) is remains in the bank and I can speculate with investments with the other 15%. An unexpected financial plan is the only way to avoid losing money.

The country in which I live; the rich also play. That is why it is difficult to know who will win. And lately it has been the wealthy people who have been winning.

But at least I know if I get rich with a lottery; I know I won't go broke.

Chasing the dream?

The best way to win is to never play. Save $ 10 per week per week for 40 years is $ 20,000 without interest, which will more than cover all the small earnings under $ 500, with which most people simply buy more tickets.

When it comes to percentages, so few winners receive large rewards that their odds of winning large sums are dire anyway. 85% of new businesses fail in 5 years, and your chances of launching 8 consecutive startups are still much better. In fact, repeated failure is the best indicator of business success. Many of those small business failures will act

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Chasing the dream?

The best way to win is to never play. Save $ 10 per week per week for 40 years is $ 20,000 without interest, which will more than cover all the small earnings under $ 500, with which most people simply buy more tickets.

When it comes to percentages, so few winners receive large rewards that their odds of winning large sums are dire anyway. 85% of new businesses fail in 5 years, and your chances of launching 8 consecutive startups are still much better. In fact, repeated failure is the best indicator of business success. Many small business failures will actually pay off before they fail.

So stay away from the lottery, which was the recommendation of an advisor who retired as a lottery researcher. Apparently, lottery winners run into all kinds of problems with their winnings, the IRS being the most prominent. Most people have absolutely no luck and don't understand that lottery winners are just random winners who are planned selections for that ticket. But, since it was their ticket, they consciously believe that some of their methods are superior (even infallible) and decide to repeat those superstitions. This elevates some unrelated behaviors, like buying another Collie, because that's what I did just before I won the first time.

His memory hovers over the wrong elements of supposed cause and effect.

It's not luck if the game is rigged to pay out one winner at a time, you just feel lucky for a winner who is eventually paid. That winner didn't do anything unusual to consider himself winning that money hopefully. There is no Midas touch, no luck, no gift from God, no lucky number, no lucky car, dog, color or liquor store. It is random.

What would be lucky is to win the lottery without ever having played.

Instead, she became the winner of a planned event and her luck didn't change one iota. She remains with the same problems and weaknesses as before, with one exception. He has no experience in managing large amounts of money, so he spends 50 times faster. His friends change and his financial problems change.

Now he makes too many dumb mistakes, because he has "a lot more where that came from."

Now you must trust someone to manage your money. She must pay taxes and does not know how to do it at that level. She trusts the wrong people, because she lives large and enjoys her luck. You can't handle too little money and now you can't handle too much. People suddenly arrive to help you spend your new money with promises to invest in easy money plans.

These weird behaviors are a set of useless strategies that just lose money, with lottery rollovers, stock market gambling, silly scams, and schematic schemes. His pride suggests that he has the golden touch, but instead the touch acts more like a leprosy.

Put your money in gold coins and keep them until you need them. Buy a coin every month and forget about the lottery and enjoy the tax-free refund in your retirement. Spend it quietly.

Good luck mac

Original question:
"How can someone handle a large amount of money received from the lottery?"

Send me the money and I'll show you ...> B-)

There are some steps that seem to be more or less common for those who do not spend their earnings in less than a year:

Step 1. KEEP MOUTH CLOSED.
Don't tell anyone, don't brag, don't spend a lot of money.
If you use a financial advisor:
Do not tell them the total amount you have available.
Drip feed them in the hundreds of thousands.
Although most are honest and hardworking people, everyone has their price.
Better not tempt fate.

Step 2

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Original question:
"How can someone handle a large amount of money received from the lottery?"

Send me the money and I'll show you ...> B-)

There are some steps that seem to be more or less common for those who do not spend their earnings in less than a year:

Step 1. KEEP MOUTH CLOSED.
Don't tell anyone, don't brag, don't spend a lot of money.
If you use a financial advisor:
Do not tell them the total amount you have available.
Drip feed them in the hundreds of thousands.
Although most are honest and hardworking people, everyone has their price.
Better not tempt fate.

Step 2. Take a short vacation and get out of town.
Charities are always getting information and will incessantly annoy you if they think there is a possibility that they will get something from you. Then they will bother you a little more.

Step 3. Deposit the money into your bank account.

Step 4. Do your own research and buy some stable, income-producing investments.
(Stocks in blue-chip companies, ETFs, commercial real estate, etc.)

Step 5. Don't do anything new or different for a full year while you get used to the money being there. (It's amazing how much fun work becomes when you no longer care about impressing people.)

Step 6. Replace your car, if necessary, with a new vehicle of slightly better quality.
(People will figure out if you're going to work on a Bugatti Veyron, so don't freak out.)

Step 7. Buy the house you want to live in (Do not transfer your phone number).

Step 8. When money is invested well, it usually doubles every 7 to 10 years.
If your investments are making enough to do this while still providing enough income to keep you in a style you'd like to get used to, quit your job if you're not having fun and find something satisfying to keep you busy. This could be actively managing your money, it could be starting your own business, or it could be volunteering. As long as you give him a reason to get out of bed with a smile on his face every day, it's a good thing.
If you have less than six million dollars invested, this will be difficult.
It's amazing how fast money can run out.

There is a nice nice house a step away from mine that would be a nice upgrade.

9 bedroom single family home for sale in Woodlands Hall, West Avenue, Roundhay, Leeds, West Yorkshire LS8 - Zoopla

By the time you have paid the SDLT (tax), the house would cost approximately £ 2.2 million.

I spend another £ 800k-1.5m on the complete restoration of the building. This would also include building other cool things like a panic room.

I would then install a lift in the garage for my car collection (£ 300k)

Home Garage Elevators - Lubrication Equipment

1.LaFerrari (£ 2 million) (this is more for investment than anything else or something like that

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There is a nice nice house a step away from mine that would be a nice upgrade.

9 bedroom single family home for sale in Woodlands Hall, West Avenue, Roundhay, Leeds, West Yorkshire LS8 - Zoopla

By the time you have paid the SDLT (tax), the house would cost approximately £ 2.2 million.

I spend another £ 800k-1.5m on the complete restoration of the building. This would also include building other cool things like a panic room.

I would then install a lift in the garage for my car collection (£ 300k)

Home Garage Elevators - Lubrication Equipment

1.LaFerrari (£ 2 million) (this is more for investment than anything else or so I want to believe)

2. BMW M5 (£ 100,000)

3. Aston Martin DBS (£ 300k)

4. Lamborghini Aventador SV (£ 500,000)

5. Range Rover Vogue SVR LWB (£ 150k)

6. Mercedes Sprinter Van (interior ripped and fully customized) (approx £ 500,000)

7. A series 5 (relatively cheap!) To drive to college and back (£ 50k) without generating a lot of suspicion (it's my parents' car, for example)

8. A 17 seater van: My extended family often go on holiday across the country, Cornwall, Wales, lakes, valleys, etc. (£ 100k)

9. Nothing says I came as a Roller - I'd get a Phantom and a chauffeur (just to go to and from events and things like that) it's probably worth hiring one for how little I will use it (£ 10k per rental day x 2 / 3 times a year)

Gifts

Would buy 4 relatives per house (house each) (£ 4 million)

I'd buy the gifts from those relatives (£ 100k)

I don't want my friends / extended family to know, so I would tell them that I bought my house cheaply as it was in shambles and that I did it slowly while I was able to save - my parents paid for the house, etc.

I'd buy my dad a Porsche 911 (£ 120k)

I'd buy my mom an M4 (£ 80k)

I'd let my brother buy anything he wanted for a day, be it tech, games, anything (£ 20k)

Then I would move on to my watch collection:

  1. Rolex Daytona (not a solid gold one as it's too flashy for me) (£ 60k)
  2. Sub Rolex 'Hulk' (£ 20k)
  3. A. Lange & Sohne Tourbograph Pour Le Merite 712.05 (£ 250k)
  4. Omega SMP Chrono (£ 5k)
  5. Patek Philippe calatrava (£ 40k)
  6. Patek Philippe Grand Complications (£ 500k)
  7. A nice cheap Seiko to take to airports

Experiences:

I'd like to travel the world a bit, maybe explore India again, then Thailand, Malaysia, Singapore, Japan, China (maybe not now) USA, Canada, UAE, South America and finally within and around Europe before returning home. .

Including hotels, flights, car rental, eating out etc, it would probably cost me £ 200,000 (staying in very nice hotels but flying economy class except on long haul flights (over 7 hours)

Take flying lessons (£ 50k)

Technology:

On my extensive travels I will probably take a lot of photos, so I would buy an iPhone 11 Max (if that's what Apple decides to call it) in its most expensive version (£ 2000).

My MacBook is very new (less than a year) but instead of having to put photos on an external drive I would probably trade it for the more expensive iteration (would need the storage space) (£ 6000)

I'd make my own NAS, not that expensive anyway, £ 5k would be more than enough to set up a Raid 5 array, ensuring that even if one drive fails, all data is recoverable.

Property

In addition to my primary residence, I would consider buying property abroad, my only problem is that I doubt I will travel long enough to justify the expense and I would expect NY real estate to be a long way from me anyway price range.

I suppose I would settle for a small house in front of the Santa Lucia beach. (£ 500k)

Diverse:

There's probably something I've missed so £ 50k

And finally, an assistant to keep track of everything, like when the lambo's insurance is going to expire. (£ 40k a year)

In total, just shy of 12,500,000 if you were to win the £ 180 million jackpot, you would invest £ 40 million in a suitable balanced portfolio of stocks, gold, some index funds a bit in leveraged ETFs.

Invested relatively well, 7.5% can be achieved with some work, it works out a little over £ 432k a year - more than enough to live on.

That leaves me with £ 107,500,000, I am an aspiring lawyer so I would probably use some of the money to build my own firm. There is a nice building for sale in the city center for 40 million pounds. You would probably get a mortgage given how expensive it is and any interest can be written off.

I'd donate a significant amount to various charities, maybe even set up one of my own to help house and feed the homeless, some money for Alzheimer's research and some for cancer research, I'd make a donation to my local hospital (£ 47,5000,000 donated)

You would probably donate it for x years instead of a lump sum.

I really have no idea what I would do with the rest, aside from sitting down to drop off my (unborn) children, I have no idea.

Maybe create a trust that allows them to withdraw some money every 10 years? Something like £ 2 million would mean they would have a lot of money to own nice things, but that would depend on what they are like - it's a lot of money and I don't want them to waste it or worse.

I would probably do something similar for my grandchildren.

I would donate some money to the university of Leeds (my city) to buy some kind of influence there that would allow my children to study whatever they wanted.

Have you ever met someone who won the lottery or suddenly received a large inheritance? How did your life turn out?

He had two friends who were brothers. They were useless. Neither of them ever worked. They both stayed home with their mom even after their dad died.

When their mom died, the kids got the 3,500-square-foot home and about two million dollars after the assets were liquidated and all taxes paid.

In two years they managed to wander through all the fortune and lose the house. Basically, they were in the older brother's truck stealing everything they could to get things they needed.

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Have you ever met someone who won the lottery or suddenly received a large inheritance? How did your life turn out?

He had two friends who were brothers. They were useless. Neither of them ever worked. They both stayed home with their mom even after their dad died.

When their mom died, the kids got the 3,500-square-foot home and about two million dollars after the assets were liquidated and all taxes paid.

In two years they managed to wander through all the fortune and lose the house. Basically, they were riding in the older brother's truck stealing everything they could to get the things they needed.

Don't get the wrong idea. They didn't mug people or anything like that. Usually it was a tent lift. Other times, they took the things that people left for a second because they needed their hands.

Then the brothers would run off with the items. Most of the time they took purses and purses. They often made fun of their friends.

It got a little old, especially after they spent all that money. I will admit that they were reliable. I made a twenty dollar bill disappear from my dresser.

I went straight into the living room where the older brother was watching TV. I held out my hand saying, "Okay, let's do it." He smiled, then reached into his pocket and handed me a twenty dollar bill.

The last time I saw them, they were still living the same way. That was 35 years ago. While it wasn't too difficult to put up with the brother's antics while single and it was a little less comfortable after I got married, I just couldn't have crap like that hanging around when I had my kids.

I told both of them that I would prefer they not visit me again. Naturally, they got mad about it. I have not seen or heard from either of them since.

I had another friend. We'll call him Jim. Jim won a five million dollar lottery. He accepted the lump sum. I can't recall the exact amount he ended up with, but it was around 3.5 million.

Jim had an addiction to scratching and buying lottery tickets. It took Jim about three years to scrape all of his windfall profits. He finally lost his home.

A few months later, he was so in debt that he had to file for bankruptcy. Fortunately, Jim finally got smart and went to a therapy group for gambling addiction.

He bought another home, remarried, and lives comfortably without his scratch cards.

People claim that "poor" people who get rich quickly (through the lottery, etc.) will go back to being poor. Why is that? Is that remotely true?

It is true for some. And if they are not poor again, they could be back where they started (financially speaking).

The reason is that people who have money problems continue to have problems if the amount of money they have increases.

People who don't know how to budget will overspend. This is true whether your income is $ 30,000 or $ 300,000 a year. They will buy a house that absorbs a lot per month in mortgages, maintenance and utilities. They buy gadgets that take a long month

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People claim that "poor" people who get rich quickly (through the lottery, etc.) will go back to being poor. Why is that? Is that remotely true?

It is true for some. And if they are not poor again, they could be back where they started (financially speaking).

The reason is that people who have money problems continue to have problems if the amount of money they have increases.

People who don’t know how to budget will overspend. That’s true if your income is $30,000 or $300,000 a year. They will buy a house that sucks up a lot per month in mortgage, upkeep, and utilities. They buy gadgets that require a lot of monthly expenditures (imported cars that have high insurance rates and/or pricey car parts and service, boats or planes that have high fuel and maintenance costs). Even worse is if they have a loan on an expensive house, boat or car and then find out they didn’t figure in the monthly payments.

A lot of them get done in by their own generosity—investing in someone’s wild-hair idea, or helping out a friend or relative who is down on their luck, and comes back again and again for another handout.

Sadly, some get ripped off in scams.

I can well see people who haven’t had a lot of money in their lives being dazzled by all the zero’s and going hog-wild. And to some extent, I can’t blame them.

The first thing a lottery winner should invest in is a lawyer and a financial adviser. And then listen to their advice.

Even if your not Christian…Just some things to know.

1 Timothy 6:10 ESV

For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs.

Matthew 6:24 ESV

“No one can serve two masters, for either he will hate the one and love the other, or he will be devoted to the one and despise the other. You cannot serve God and money.

Hebrews 13:5 ESV

Keep your life free from love of money, and be content with what you have, for he has said, “I will never leave you nor forsake you.”

2 Timothy 3: 2 Interlinear

For people wi

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Even if you are not a Christian ... Just a few things you should know.

1 Timothy 6:10 Interlinear

Because the love of money is the root of all kinds of evil. It is through this longing that some have turned away from the faith and have been pierced with many pains.

Matthew 6:24 Spanish

“No one can serve two masters, because either he will hate the one and love the other, or he will give himself up to one and despise the other. You cannot serve God and money.

Hebrews 13: 5 ESV

Keep your life free from the love of money and be happy with what you have, because he has said: "I will never leave you or forsake you."

2 Timothy 3: 2 Interlinear

For men will be lovers of themselves, lovers of money, arrogant, arrogant, insulting, disobedient to their parents, ungrateful, ungodly,

Luke 12:15 Interlinear

And he said to them, “Take care, and be on your guard against all covetousness, for one's life does not consist in the abundance of his possessions.”

1 Timothy 6:9-11 ESV

But those who desire to be rich fall into temptation, into a snare, into many senseless and harmful desires that plunge people into ruin and destruction. For the love of money is a root of all kinds of evils. It is through this craving that some have wandered away from the faith and pierced themselves with many pangs. But as for you, O man of God, flee these things. Pursue righteousness, godliness, faith, love, steadfastness, gentleness.

Proverbs 13:11 ESV

Wealth gained hastily will dwindle, but whoever gathers little by little will increase it.

Matthew 6:19 ESV

“Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal,

Matthew 6:31-33 ESV

Therefore do not be anxious, saying, ‘What shall we eat?’ or ‘What shall we drink?’ or ‘What shall we wear?’ For the Gentiles seek after all these things, and your heavenly Father knows that you need them all. But seek first the kingdom of God and his righteousness, and all these things will be added to you.

Ecclesiastes 5:10 ESV

He who loves money will not be satisfied with money, nor he who loves wealth with his income; this also is vanity.

James 2:5 ESV

Listen, my beloved brothers, has not God chosen those who are poor in the world to be rich in faith and heirs of the kingdom, which he has promised to those who love him?

1 John 2:15 ESV

Do not love the world or the things in the world. If anyone loves the world, the love of the Father is not in him

.Proverbs 28:20 ESV

The faithful man will abound in blessings, but the one who is quick to get rich will not go unpunished.

Mark 10:25 Spanish

It is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God ”.

Done.

Haha sure. There is no exclusion if you need the money. You can spend more than you should.

Story: Then a woman found half a million in her back account. He asked the bank about it. They questioned her and decided that she had won a foreign lottery and that the lottery had deposited the winnings into her account. Then they helped her invest and spend the money. Good bank. BUT she didn't win. The bank had made a mistake, and when her insurance did not cover her loss unless the culprit was incarcerated, she was arrested, convicted, and locked up. It is not a good bank.

So if you win, do

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Haha sure. There is no exclusion if you need the money. You can spend more than you should.

Story: Then a woman found half a million in her back account. He asked the bank about it. They questioned her and decided that she had won a foreign lottery and that the lottery had deposited the winnings into her account. Then they helped her invest and spend the money. Good bank. BUT she didn't win. The bank had made a mistake, and when her insurance did not cover her loss unless the culprit was incarcerated, she was arrested, convicted, and locked up. It is not a good bank.

So if you win, please make sure that you won.

Wealthy people don’t enter the lottery that much, they already have money and know that the lottery is a very bad investment. Even though a few people win, millions of people, the vast majority that enter, lose their money.

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