Everyone thinks that winning the lottery turns your life into a dream. Actually, if you’re not careful, it can create your own personal nightmare. Many people don’t have the first clue how to keep the money they’ve earned, and end up blowing through it. Given that lottery tickets are a bad investment in the first place, it’s not surprising that so many lottery winners end up broke. Your financial situation at the end of a wild economic ride is typically indicative of the person you were before you got the money in the first place. In other words, someone who spends all their money on lottery tickets when they’re poor are likely going to make other counter-productive investments when they become rich.
Read more some of this interview with a lottery winner as he talks about the challenges of managing millions after winning the lotto. It’s something to think about:
Speaker1: All right, in case you missed it, these were the winning numbers in last night’s five hundred and eight million power ball jackpot. So did you win? Gosh, I hope so. If you’re one of those luck winners, our next guest says, “Be careful before you go spending all that cash.” And a whole lot more.
Speaker 2: Right, so for the winners, pay attention. I know where you are over in Arizona, and one more place. Steven White won over two hundred million dollars in a power ball drawing back in 2004, he joins us this morning.
Steven, looking back, reliving that moment, are you glad you won?
Steven: Yes, very much, I’m very happy that I won, but it’s not what the average person would expect to have happen.
Speaker 1: Why?
Steven: In every way. Very few people are very … They’re ill equipped to handle a two hundred million dollar business overnight, and that’s essentially what happens. You come from your daily walk of life and then in the blink of an eye you’re managing a two hundred million dollar business.
Speaker 2: How did you do managing that business? I see here that you immediately got a lot of people writing you letters asking for a lot of that money.
Steven: Yeah, there was, within two days, there was ten thousand pieces of undeliverable mail at my local post office asking for money. Probably about five hundred actually spent money to find out where I lived and sent me a Fed-Ex and asked for money. Thankfully, I had great financial advisers around me, as I do to this day. Who are just my guiding light, as it was.
Speaker 1: The scary thing is, this is what people don’t think about, you hired security to make sure that your family was safe. You also gave money to members of your family, and is it true that after you gave them money they no longer speak to you?
Steven: That is correct.
Speaker 1: Why?
Steven: That is correct. Because I guess in their minds it wasn’t enough-