Have you watched the fantastic TLC realty show The Lottery Changed My Life? The show visits a variety of lottery winners including a janitor, truckers, and a team of Midwestern lunch ladies. The show interviewed them about what it was like to win big and strike it rich.
Some spent the money on toys like cars, motorcycles and spa treatments. The young British woman spoiled her sister by paying for her breast enlargement. One family started a foundation in their late son’s honor that helps families dealing with pediatric cancer pay their bills. When it came to the lunch ladies, most were still serving up food at a local school and living very modestly. I was a little surprised that pretty much everyone they featured on the show seemed to have been responsible with their money. Perhaps most heartwarming is the winner who used his money to become a Hollywood producer, then adopted five children orphaned by a tragic accident.
But for some, the incredible wealth they obtained overnight was quickly squandered and actually lead them to financial ruin. According to financial experts, 70% of lottery winners squander their money within a few years. Many winners experience broken families and friendships that are torn apart by the sudden rush of money. Statistics also show that there is a 90% chance that the money will be gone by the third generation. Most lottery winners are know nothing about wealth management, and unfortunately many are naive about even the basics of sound financial planning.
The incredible shock and euphoria of becoming an instant millionaire leaves them very susceptible to questionable investments and especially con-men. In fact, lottery winners are such popular targets for fraudulent schemes that most lottery boards recommend that they immediately change their phone number to an unlisted one. Ironically, lotteries also refuse to let winners remain anonymous for both publicity and public accountability reasons, so they are certainly not hard for the bad guys to find.
If The Lottery Changed My Life has you excited about becoming the next instant millionaire, remember that the odds of that happening are so astronomically small that the chances of few events on Earth even compare. If you do play the lottery, consider it entertainment and not an investment. Use money you would otherwise spend on other fun things and absolutely never spend a dollar that you can’t afford to lose. Alternatively, there are some great free online lotteries that provide much of the same entertainment without the cost. Good luck!
July 27th, 2009 at 5:21 pm
I didn’t see the show, but I am surprised they didn’t show some who weren’t responsible with the money.
What many people miss when it comes to hitting a jackpot like this is that happiness derived from money is fleeting.
There’s no question that the lottery will change your life, but the question is in what way. The majority of the time it has a highly negative impact on a person.
I did a post on this a while back asking the question, “Wouldn’t it Be Nice to Win the Lottery?” http://bit.ly/Myjcu
August 13th, 2009 at 10:27 am
I am one of those who would use the money to increase what I am already doing in the community, every year I have a toy drive, but if I won, I would do sooo much more, like food,clothing, education programs and a womens support group for mothers who are suffering from postpartum deppression. I am a postpartum survivor, let me tell you the resources are horribly limited.
September 3rd, 2009 at 1:57 pm
Most people that come into “lots of money quickly” are not prepared because they most likely do not have a handle on the little money that they have. Having more money is not the key to financial freedom for most people, because most people do not understand how money works, nor do most people budget well.
Given these facts, it is not a surprise at all that so few people hold on to their winnings.
October 6th, 2009 at 2:47 pm
I’ve watched these lottery shows on TLC many times and it is sad that people loose all that money. I play the lottery on a weekly basis and have told my wife the rules of how we will do this when we win:
1. Claim the money under an established investment, family or trust name. Keep quiet. Don’t tell anyone until you actually have the money. But even still keep yo damn mouth shut.
2. Read carefully all instructions for claiming your prize on the lottery ticket and on the responsible agency’s website. Sign your name on the back of the ticket, unless the rules forbid it. Make a photocopy of the front and back of your ticket, and deposit the original in a safety deposit box in a reputable bank.
3. Contact a lawyer immediately to weigh your legal options regarding keeping bank accounts and dividing the winnings. Claim the money under an established investment, family or trust name.
4. After receiving your money, (with the aid of legal counsel), contact a reputable accountant/financial advisor before spending.
5. Remember that when dealing with small banks, go straight to the VP or upper management. With larger, national banks, go to their Private Banking or equivalent division for customers with great wealth. They may have more options when it comes to banking, and have a better grasp of the disclosure and security procedures in the bank.
6. Give yourself a modest initial spending spree and then sock the rest of it away so you can live on the interest.
7. Do NOT quit your job. You are now very wealthy, however, you will need something to keep you busy and keep you from spending all of the money. Try to work part-time, and file a leave of absence, or if you are sure of your company’s financial status (consult lawyer), talk to the lawyers regarding making you a silent partner.
8. If you were miserable at your job, quit, and go back to school or try for a new job. Do NOT buy a company out of spite. It will still cost a substantial amount of money. Just quit gracefully.
9. Make the recipients of your gifts sign confidentiality agreements regarding the disclosure of your gift for at least five years.
10. Invest, invest, invest. Diversify your portfolio, but have a cap on risky investments. Consider safer routes, such as a retirement plan, time deposits, Certificates or Money Markets. Ask your local credit union if they need another volunteer board member.(Learn the financial ropes)
11. Lie low. Keep your old friends close. This will keep you or anyone else from getting kidnapped or getting mugged. There is no need for a press release, you don’t need the publicity. You can live comfortably without raising suspicions.
12. Buy smart. You may have enough money to buy a small country, but you still have to run that country. Consider the additional expenses involved in buying an acre of house (utilities, taxes) or a fleet of Porsches (taxes, tariffs, maintenance) before buying.
13. Commit this to heart: You did not earn this money, you won it at an improbable game. Don’t be a nut about getting rich.
October 7th, 2009 at 5:49 pm
I play every week, and I have seen the shows. I agree with Roy’s outlook on things. You don’t need to quit your job and just live off of your winnings because they aren’t going to last you a lifetime, especially if you have family and friends. I think alot of people also don’t consider the annuity option enough. Winners would see more of their money if it was rationed out.
October 9th, 2009 at 4:39 pm
I play about every other month I spend $30. But I would take Roy’s advice on what to do. I would take a lump sum because once you win it you pay taxes on it for that year yes it’s less money but nothing in life comes with a guarantee. If you take an annuity your tax rate would change every year and the way that the government is now who knows what that rate will be. I would want to help out my community and family who have always helped me and I don’t have any real friends so pretty much anyone who talked to me after they found out would really have to prove what their true intensions are with me, my guard would have to be up a little more than it is now but I can live with that. Money does do some weird things to people and relationships I hope I would just be the type of person that would be able to do some good in an otherwise chaotic and violent world. Charities would be on the top along with family programs, single mother programs and children programs.
October 21st, 2009 at 11:00 am
1.The first thing of my list of things to do is give my 20% out to charity and go back to school and get my MBA.
2. Get with someone like maybe Bill Gates or Warren Buffet and seek investment advise from them.
2. Buy a house, but nothing more than $500k, buy a family SUV, Honda Civic for my girlfriend and one for myself.
3. Pay off my sister’s house and all her debt.
4.Spent nothing more than $1mill on family.
5.Put at lease about 40% of it in a Swiss bank account and live off the annual interest.
November 9th, 2009 at 3:56 pm
As for me I will help those who helped me when I was down and out but before anyone gets my kids will always come first. their my first priority. My kids an my husband!
November 23rd, 2009 at 1:20 am
Thank you for the nice post. Yeah it is sad to see that most lottery winners wind up broke shortly after winning. They should not give people the cash option. They should make winners receive payments over 20 years so they cannot spend all that they win at once.
December 9th, 2009 at 6:52 am
I was watching one of the lottery shows and they gave out the six most winning numbers that come out.I did not write them down, does anyone know what they were?
February 8th, 2010 at 12:37 pm
well it be nice to win the lotto but im a 34 year old man that i lived my life to the fullest with money and no money. i probaly give it to the hungry kids and built educational centers to how live better with the http://www.thevenusproject.com
peace to all with love.
Carlos Varela
February 28th, 2010 at 7:37 pm
When I was a teen I use to pray to God (and still do)that If God could send me 2 mill. that I would give one away to people and keep the other,and if I was to win ,yes I would and would have so much fun helping people,I play as much as I can,But the way I see is I’m helping every time I play to the Schools,and I feel good,yeah I’ve spent over 2,000,00 in the last few yrs. on s.tickets,my fav. is Crossword,and if I do ever win,well I will thank God first…Thanks for reading mine : ) Valerie from Mo.
March 4th, 2010 at 2:54 am
Just pack up and leave, travel wherever I wanted for a year. I like the Swiss bank account idea. If I found some place in the world I just loved too much, buy a modest, comfortable house, then travel some more.
Of course, I’d give a lump sum to each of my grown children, and soon to be ex wife.
Then settle with a girl friend, as yet out there somewhere!
March 5th, 2010 at 1:49 pm
I did watch the show. I was suprised to see many of the winners spending their winnings on posessions and very few not helping in their commUNITY.
My heart goes out to the family that started an organization in their late sons honor. They took a loss and made something positive out of it and it keeps the memory of their beloved son alive.
I have always said that if I where to win I would start a non for profit dental program for families that can not afford dental care.
Their are many opportunities for us to unite in our communities and lift each other up.
March 7th, 2010 at 8:07 am
Seek you first the kindgom of God and HIS rightousnes and all these things shall be added until you.There is power in the tougue if you blieve, and be patience that you season is soon to come whether you hit the lottery or not, the urge to hit the lottery it to will pass. I hope everyone good luck that plays the lottery, because the word of God said ” The riches of the wicked shall be laid up for the rigthous.(Are You A Rightous Person?)
You must first show yourself worthy of the small things, pass simple tests in life of FAITH and be obedient in which is right in the choices we make in life, And then you will be TRUSTED with the BIG GREAT REWARD!
While you wait on your winnings that will soon come, because they will come, do something more vaulable with your important time. Life is much to short to wait on the lottery, if it’s meant for you what will be you will receive.
Good Luck