Winning the lottery does more harm than good

[bakasabo]

All comes from lack of knowledge in finances, bad planning. When people suddenly become rich and gain big money, they dont know how to spend them. In their mind and dreams they know that money should be spend wise, that they must invest. But when it comes to action, they dont know how to make all that, plus they become busy and lazy. Hard to find time to think where to invest, when you are busy spending on entertainment and having fun.

[ChocolateBitcoinK]

If someone has never experienced the thrill of gambling or the feeling of winning money, then if he can achieve a big win, it will act on him completely differently. And when someone wins in gambling, his brain will stop being as flexible as before.
Untrained people lose control when they win a lot of money and they forget about money management. Each person needs to think according to certain rules and be able to maintain control over himself.
 However, if someone spends his cash flow or necessary money on gambling, then there is a possibility of quickly becoming penniless.

[danherbias07]

All comes from lack of knowledge in finances, bad planning. When people suddenly become rich and gain big money, they dont know how to spend them. In their mind and dreams they know that money should be spend wise, that they must invest. But when it comes to action, they dont know how to make all that, plus they become busy and lazy. Hard to find time to think where to invest, when you are busy spending on entertainment and having fun.

I agree with that.

Lack of financial planning, although I do understand that winning a lottery could be shocking. But there are people who can stay calm and think about their future first. Those who had been living in bad environment and did not even felt having lots of money will probably understand it more on how to secure their money.
As long as they pick the right financial planner and it will not be a scam. I think they will be good for many years.

[bakasabo]

All comes from lack of knowledge in finances, bad planning. When people suddenly become rich and gain big money, they dont know how to spend them. In their mind and dreams they know that money should be spend wise, that they must invest. But when it comes to action, they dont know how to make all that, plus they become busy and lazy. Hard to find time to think where to invest, when you are busy spending on entertainment and having fun.

I agree with that.

Lack of financial planning, although I do understand that winning a lottery could be shocking. But there are people who can stay calm and think about their future first. Those who had been living in bad environment and did not even felt having lots of money will probably understand it more on how to secure their money.
As long as they pick the right financial planner and it will not be a scam. I think they will be good for many years.

If it would be possible, a test can be made. The idea of it will be to give a random person suddenly millions, and as you have said, person will be shocked first and a good period of time, and wont be able to think rationally. Subconsciously that person will understand that he must spend wise, but he will run spending those money. Why think how to invest, when you are rich now and can do whatever you want. That is what in lottery winners mind. I think you and I will start travelling, but new property, cars, branded clothes, gadgets, start making presents for family and friend, and only after a period of time we will only start to think how much money we have left and what to do with them.

[Inwestour]

All comes from lack of knowledge in finances, bad planning. When people suddenly become rich and gain big money, they dont know how to spend them. In their mind and dreams they know that money should be spend wise, that they must invest. But when it comes to action, they dont know how to make all that, plus they become busy and lazy. Hard to find time to think where to invest, when you are busy spending on entertainment and having fun.

I think there are a few misconceptions here. I once saw some statistics, though I probably won’t be able to find them right now, showing that not everyone who wins the lottery immediately loses their money. This is a common belief that people often talk about, but in reality, it’s not true. People who win the lottery often find good ways to use their winnings. Even those who aren’t familiar with investing can, for example, buy real estate and earn profit from it. Some simply leave the money in a bank account and earn interest, maybe small, but considering that lottery winnings can be very large, this income is enough to generate passive income and live off it. Of course, there will be people who spend everything quickly, lose it, fall victim to scams, or lend money they never get back. It all depends on how a person manages their money.

[Mighty97]

Interesting thought to take, which is also correct, emergency wealth usually does lots of harm than good as it comes without the habits or mindset of control or management of it. So many winners in lottery ends up losing it all as they never had the financial discipline or balance emotionally that is required to handle that sort of change. Quick money brings to light the person you already are; when you don't have control or  purpose, it would spiral fast.

The point you made about real lottery as life itself hits home. Gratitude, effort, and growth give meaning to life. The struggle is what shapes character, then comfort not earned will strip it out. In one sense, the process of building, failing, and trying again is wealthier than any jackpot.

[Mahanton]

All comes from lack of knowledge in finances, bad planning. When people suddenly become rich and gain big money, they dont know how to spend them. In their mind and dreams they know that money should be spend wise, that they must invest. But when it comes to action, they dont know how to make all that, plus they become busy and lazy. Hard to find time to think where to invest, when you are busy spending on entertainment and having fun.

I think there are a few misconceptions here. I once saw some statistics, though I probably won’t be able to find them right now, showing that not everyone who wins the lottery immediately loses their money. This is a common belief that people often talk about, but in reality, it’s not true. People who win the lottery often find good ways to use their winnings. Even those who aren’t familiar with investing can, for example, buy real estate and earn profit from it. Some simply leave the money in a bank account and earn interest, maybe small, but considering that lottery winnings can be very large, this income is enough to generate passive income and live off it. Of course, there will be people who spend everything quickly, lose it, fall victim to scams, or lend money they never get back. It all depends on how a person manages their money.

A lot of people lose their wealth because of poor financial knowledge and planning but not everyone who suddenly becomes rich ends up broke that idea became popular mostly because of the dramatic cases where lottery winners or sudden millionaires wasted everything fast and made headlines but there are plenty of people who handle their winnings wisely and quietly so we just don’t hear about them.

Many who get rich quickly don’t necessarily lack intelligence they often just lack experience with large sums of money managing a few thousand and managing millions are completely different things when someone’s lifestyle changes overnight it’s easy to get caught up in spending on comfort and entertainment before thinking about long term security. Some winners or sudden earners do manage to make smart choices they buy real estate set up savings accounts or use part of the money to create stable income streams even keeping it in a bank can be a reasonable move if the amount is large enough to generate passive interest the key difference comes down to discipline and mindset not just financial education.

[bakasabo]

All comes from lack of knowledge in finances, bad planning. When people suddenly become rich and gain big money, they dont know how to spend them. In their mind and dreams they know that money should be spend wise, that they must invest. But when it comes to action, they dont know how to make all that, plus they become busy and lazy. Hard to find time to think where to invest, when you are busy spending on entertainment and having fun.

I think there are a few misconceptions here. I once saw some statistics, though I probably won’t be able to find them right now, showing that not everyone who wins the lottery immediately loses their money. This is a common belief that people often talk about, but in reality, it’s not true. People who win the lottery often find good ways to use their winnings. Even those who aren’t familiar with investing can, for example, buy real estate and earn profit from it. Some simply leave the money in a bank account and earn interest, maybe small, but considering that lottery winnings can be very large, this income is enough to generate passive income and live off it. Of course, there will be people who spend everything quickly, lose it, fall victim to scams, or lend money they never get back. It all depends on how a person manages their money.

I think this is a situation when a person knows what to do (theory), but does not know how to start (does not have experience). For example me and you might exchange part of lottery winnings into crypto. We know how to do that when talk is about small amounts. But if you had $1 million on a bank account, how quick, easy, without losing much on commission, you can exchange that into crypto? Will you be sure from the start, that what you are doing will be safe? You have done only a part. Now you want to invest rest in property, business. Without searching for next steps, can you do that during week? I think it will be very complicated. Parallel doing all that, you will have to think stay or quit job, how to celebrate and have fun. People got lost during doing all that, and without noticing, spending everything.

[taufik123]

-snip-
Many who get rich quickly don’t necessarily lack intelligence they often just lack experience with large sums of money managing a few thousand and managing millions are completely different things when someone’s lifestyle changes overnight it’s easy to get caught up in spending on comfort and entertainment before thinking about long term security. Some winners or sudden earners do manage to make smart choices they buy real estate set up savings accounts or use part of the money to create stable income streams even keeping it in a bank can be a reasonable move if the amount is large enough to generate passive interest the key difference comes down to discipline and mindset not just financial education.

That's the difficult, doing the right management of the money that is made, because some people only know how to use money but don't know how to manage the money.
When a person only uses money for a consumptive life, then there will be no money left for investment or for a business with a clear passive income.

Everything is used to buy things that are not really needed, it becomes a fatal mistake for those who hit the jackpot, because the end result will only be to lose money on useless things.
I myself was also overly consumptive at first until there were several incidents that made me realize that real investment and having passive income are very important.

Unlike when getting a win easily with just 1 lottery coupon and earning thousands or even hundreds of dollars,
they tend to underestimate that money and suddenly run out in an instant.

[LeyMonte]

All comes from lack of knowledge in finances, bad planning. When people suddenly become rich and gain big money, they dont know how to spend them. In their mind and dreams they know that money should be spend wise, that they must invest. But when it comes to action, they dont know how to make all that, plus they become busy and lazy. Hard to find time to think where to invest, when you are busy spending on entertainment and having fun.

You are right.. If someone suddenly becomes the owner of a lot of money then naturally he forgets his own existence. He cannot maintain anything properly from where he comes. Due to not being able to maintain it properly, he cannot keep that money for a long time. But there are some exceptions in this too, those who can invest the money they win in reality or in something good, their money lasts. But in most cases, it is seen that the money they suddenly get is lost due to lack of proper management. For this, I think that if someone suddenly wins a good amount of money from the casino, then it will be the wisest thing for him to invest it in something good. After investing in something good, if he thinks of doing something else with some money, it will be better for him. Although I cannot win in any big bet, but if luck ever helps me, then I will spend my winnings in this way.

[bakasabo]

I have noticed that if a person receives money as a salary, he thinks about his expenses, try to plan how to make them until next salary and how much he can try to save. When a person receive a bonus at work, finds money on the street, receives money as gift or wins in gambling, all what he thinks is how to spend them. Spending rarely equals using money wise. I think that if anyone of you win thousand dollars, you would spend it instead of buying crypto and holding.

[Youngrebel]

So I think it is an individual thing. From the description you have given all of these mischievous things happen to them because of the attitude they portray cause the problems they encounter in their life time. Yes it is agreed that Free thing can purge but it depends on how you consume it.
Take for instance you receive a pot of free food from your neighbour, you decided that you want to finish it in the same day and time not minding the next day or what it really took them to make it. You eat and eat and continue eating even after you are filled you will definitely purge after the whole enjoyment plus you will not even have any food to eat the next day. But if you  eat some and leave the rest after you are satisfied; you will certainly have food to eat again the next day.
So after winning the winners should leave the attitude of free money so lavish it anyhow.

[liasbaa]

I have noticed that if a person receives money as a salary, he thinks about his expenses, try to plan how to make them until next salary and how much he can try to save. When a person receive a bonus at work, finds money on the street, receives money as gift or wins in gambling, all what he thinks is how to spend them. Spending rarely equals using money wise. I think that if anyone of you win thousand dollars, you would spend it instead of buying crypto and holding.

You have said something important. This means that we have an emotion towards the money we earn through hard work so that it is not wasted. In each case there may be a different emotion towards the money we earn. After meeting the family needs with the amount of remuneration that is there in exchange for the money you do in the job you can think of spending extra on personal expenses, otherwise it will make you irresponsible.

A real experience of mine is that a close relative of mine who won the lottery has kept his wealth till now because he used the amount of money available to him to do real estate business and build other productive assets and he is still financially successful. So, most of the people who get money outside of their hard-earned income cannot keep the money, but those who are aware use that money properly.

[Inwestour]

A lot of people lose their wealth because of poor financial knowledge and planning but not everyone who suddenly becomes rich ends up broke that idea became popular mostly because of the dramatic cases where lottery winners or sudden millionaires wasted everything fast and made headlines but there are plenty of people who handle their winnings wisely and quietly so we just don’t hear about them.

Many who get rich quickly don’t necessarily lack intelligence they often just lack experience with large sums of money managing a few thousand and managing millions are completely different things when someone’s lifestyle changes overnight it’s easy to get caught up in spending on comfort and entertainment before thinking about long term security. Some winners or sudden earners do manage to make smart choices they buy real estate set up savings accounts or use part of the money to create stable income streams even keeping it in a bank can be a reasonable move if the amount is large enough to generate passive interest the key difference comes down to discipline and mindset not just financial education.

I agree that it takes time for a person to get used to large sums. But if they've learned to handle small amounts, they can do the same with larger amounts if they gradually learn to manage their money. As I said, those who find this difficult can use a bank deposit while they figure out how to manage this money and get used to the idea of ​​having such a large sum. While I'm against keeping such a large sum in the bank, I think you'll receive your winnings in your bank account no matter what.

[bakasabo]

I have noticed that if a person receives money as a salary, he thinks about his expenses, try to plan how to make them until next salary and how much he can try to save. When a person receive a bonus at work, finds money on the street, receives money as gift or wins in gambling, all what he thinks is how to spend them. Spending rarely equals using money wise. I think that if anyone of you win thousand dollars, you would spend it instead of buying crypto and holding.

You have said something important. This means that we have an emotion towards the money we earn through hard work so that it is not wasted. In each case there may be a different emotion towards the money we earn. After meeting the family needs with the amount of remuneration that is there in exchange for the money you do in the job you can think of spending extra on personal expenses, otherwise it will make you irresponsible.

A real experience of mine is that a close relative of mine who won the lottery has kept his wealth till now because he used the amount of money available to him to do real estate business and build other productive assets and he is still financially successful. So, most of the people who get money outside of their hard-earned income cannot keep the money, but those who are aware use that money properly.

I am little bit afraid of winning in a lottery, because I feel that money would spoil me. As a head of family, I am the person in the family who save on expenses on himself to give more to family. From time to time I catch myself thinking that such life style isnt fair. I admin that if big money comes in my hand, I would run a long lasting vacation primary for myself (but family included). And as I have never had big money, I dont know how I would react and into who I would turn. In my mind I understand that I must use money wise, but temptations to finally have a deserved rest might change me and move from correct direction.

[Callido]

I am little bit afraid of winning in a lottery, because I feel that money would spoil me. As a head of family, I am the person in the family who save on expenses on himself to give more to family. From time to time I catch myself thinking that such life style isnt fair. I admin that if big money comes in my hand, I would run a long lasting vacation primary for myself (but family included). And as I have never had big money, I dont know how I would react and into who I would turn. In my mind I understand that I must use money wise, but temptations to finally have a deserved rest might change me and move from correct direction.

Money changes people when they don't admit they can be changed, realizing what money can do to you before time, you will be more reserved in the way at which you behave when it happens. I have also not experienced lottery size amounts but it is something i will want to experience.

Sometimes being selfish isn't a bad thing, head of the family also is a human being same like everyone in the family, you don't need the bigger part always but make sure that you relaxed and enjoy what you worked for, if something unfortunates happen, everything remains in memory and before long every body moves out to fend.

[Fuso.hp]

All comes from lack of knowledge in finances, bad planning. When people suddenly become rich and gain big money, they dont know how to spend them. In their mind and dreams they know that money should be spend wise, that they must invest. But when it comes to action, they dont know how to make all that, plus they become busy and lazy. Hard to find time to think where to invest, when you are busy spending on entertainment and having fun.

When a person gets a lot of money unexpectedly, it is certain that they cannot use that money properly. After getting a lot of money, they give more priority to temporary pleasure, give more priority to temporary happiness, as a result of which they start doing unnecessary things seriously and spend money randomly and when their money runs out, they return to their previous position again. I have only said this after getting a lot of money, but many people end up having this dream and an important time in their life ends, but they do not get a lot of money suddenly. I think that instead of chasing after these things, one should focus completely on their own skills and plan accordingly and move forward.

This is where people can succeed. Expecting a lot of money from any means other than their own skills and hard work is always a wrong step.

[Kelvinid]

Everyone wants to win the lottery, but few people usually care or pay attention to what happens to lottery winners. Pretty much every lottery winner ive read about and you've read about in the end they end up going broke again. The money goes away because they never learned how to keep it. They never earned it.

Having the wrong mindset in gambling is often the reason why even a big win ends up meaning nothing. We always say, “If I win, I’ll invest and quit gambling.” But once it happens, everything changes, just like what we see with most big winners who end up losing it all again. That is because many people don’t think about financial security. Instead, they’d rather spend their money on things that don’t really matter and have no return.

This is a problem…
Most of us tend to focus on winning instead of thinking about how gambling can affect our lives. Without financial literacy or a proper investment plan, any winnings we get will get back to the casino if we can't manage it correctly.

[Mahanton]

A lot of people lose their wealth because of poor financial knowledge and planning but not everyone who suddenly becomes rich ends up broke that idea became popular mostly because of the dramatic cases where lottery winners or sudden millionaires wasted everything fast and made headlines but there are plenty of people who handle their winnings wisely and quietly so we just don’t hear about them.

Many who get rich quickly don’t necessarily lack intelligence they often just lack experience with large sums of money managing a few thousand and managing millions are completely different things when someone’s lifestyle changes overnight it’s easy to get caught up in spending on comfort and entertainment before thinking about long term security. Some winners or sudden earners do manage to make smart choices they buy real estate set up savings accounts or use part of the money to create stable income streams even keeping it in a bank can be a reasonable move if the amount is large enough to generate passive interest the key difference comes down to discipline and mindset not just financial education.

I agree that it takes time for a person to get used to large sums. But if they've learned to handle small amounts, they can do the same with larger amounts if they gradually learn to manage their money. As I said, those who find this difficult can use a bank deposit while they figure out how to manage this money and get used to the idea of ​​having such a large sum. While I'm against keeping such a large sum in the bank, I think you'll receive your winnings in your bank account no matter what.

Handling sudden wealth isn’t really about intelligence but about emotional readiness and gradual exposure to responsibility people who are used to managing small sums with care can often transition better when they suddenly acquire large sums because they already understand basic control discipline and patience the shock usually happens when someone who’s never managed money before jumps straight into having millions overnight without any plan or restraint.

Keeping the winnings in the bank temporarily can help stabilize things at first because it gives time to think and adjust instead of rushing into random decisions this cooling period is often what prevents people from wasting everything immediately but it’s not a long term solution since the value of money erodes over time if it just sits there without proper planning. The best move for anyone who comes into sudden wealth is to seek advice from people who understand financial planning and risk management even if they don’t invest right away learning about safe options like real estate diversified portfolios or steady income assets can help turn one time luck into something lasting the difference between ending up broke or staying rich isn’t how much money you receive but how calmly you handle it when it arrives.