What will you do when you win $50,000+

J

Jamesgame

Member
What will you do with the money so that you don't end up like the 19 Lottery Winners who blew it all?
http://www.businessinsider.com/17-lottery-winners-who-blew-it-all-2013-5

The lives of the many documented people who won the lottery became generally worse than when they didn't have the money.
I don't know how people could let this happen to them and why they didn't take every precaution. What could be worse than living paycheque after paycheque, unable to buy things for entertainment because half of your paycheque goes to rent/utilities/internet/phone bills etc. and the rest on food, transportation etc.
Shouldn't people cherish the moment they win a large sum of money and spend a fraction more than when they didn't have money? How can someone go from a life of no travelling, little or no partying to extensive travelling with first class priority seating, lots of partying etc.? You're mind needs to adjust to the different lifestyle.

If I could draw a chart here I would. The adrenaline rush that those people got after winning was too high. I can't imagine myself going from a life of no travelling to a life with extensive travelling with first class seating etc. even with a lot of money. I always think that you should build gradually and not too large. For instance if you currently live in community housing etc., it would make more sense to go to a medium sized house not a mansion, after winning the lottery. An example: If you're doing poorly in school (50s-60s in your courses), you can't just start getting 100s after one day of inspiration/change. You'll get 80s-90s and eventually start getting 90s-100.
 
J

Jamesgame

Member
Feel free to agree or disagree.

I live by the proverb Money Makes Money. If you have money, you can use it to get more money through investment and other means.
If I gained $50,000+, I would be able to do some things that would make me more money in the long run. With $10,000,000+ I think you can do anything to make money.

A one time lump sum of $50,000+ would allow me to start living a good life. This would allow me to quickly reach several careers that generate $100,000+ starting annual income.
Right now I live an individual life of less than $15,000/year. $7000 for school, $6000 for rent and only $2000 for other stuff. To start living at $100,000/year, it would be more than enough as I've become accustomed to living at $15,000/year. I can't imagine spending more than $100,000/year. The rest would just go to charity and sponsoring children.

How is a person who wins a $10,000,000 lottery not able to live on that for at least 50 years if they start living on $200,000/year when they were once at $30,000/year or less?
 
J

Jamesgame

Member
One more proverb that I live by is Money doesn't buy happiness.
This is true to some extend because The best things in life are free. We don't have to pay for the things that are really valuable like love, friendship and good health.

However, to get these valuable things, you NEED money. You won't be in good health if you can't buy healthy food, appropriate clothing for cold seasons etc.. You won't have friends if you don't have money to go out with them or to visit them or to keep them. Showing up to a friend's birthday party every year without a present doesn't look too good. The love part is where I'm really struggling. You need money to be able to keep a girlfriend/boyfriend to get love. I once was in a relationship several years ago but it ended because I wasn't able to go to concerts, events, most dinners, engage in mutual extracurricular activities with that person, or even tip the waitress at the restaurant.

The things that require money make a person without money display negative personality traits. Not tipping the waitress displayed selfishness (even though that was not the factual reason), not going to a particular event displayed that you don't have that hobby in common even though I may have wanted to attend such event etc.
 
I

Icewynd

Member
James,

Sounds like you have a good philosophy about money and what it can do for you. I think you would be OK if you won a large jackpot.

People who burn through millions in a short time seem to have a few problems. They don't have any plan for their money and they don't know how much it will really buy. Especially with the current low interest rate environment you need a lot invested to support yourself without a job. :agree:

And, because they don't have a plan, they don't have any limits on gift giving that would serve as justification to say "No" to money demands from others. So they end up helping family and friends with bills, mortgages, "loans" and eventually find that they have nothing left for themselves. :santa:

Finally, many lottery winners, especially younger winners, seem to want to use the money to become somebody they are not. Living the celebrity lifestyle only works if you have the celebrity income. :bomb:

I think that lottery commissions could do a better job of hooking winners up with financial planners. For the financially illiterate it is almost inevitable that the money will end up being blown.

For me, a million would be a nice prize. My plan would be to invest about 3/4 of it to supplement future income and have the rest to spend on home renovations, vehicles, trips, gifts, etc.

Nice to dream!

:thumb:
 
1

15tons

Member
Hey Jamesgame , Not an easy question to answer once you actually start trying to figure it out!
Ha! I would definitely fit that 50-60% capability quotient.
I tend to focus on the immediate relief a decent JP would render.

With a bigger Jackpot I would balance play/travel with preservation and growth of the say 90-95% of the initial windfall. Sure buy things ie. a house ratio 1:1 investment; and then look at things which sustain a greater than 1:1 return.

As for play/travel .. I might buy a VW Beetle and bomb around in that for a while, get a older used motorhome 24' check that out for a bit. Go see some Buffalo Sabres games, check out golf courses and ski hills. Drink some real nice beer at a Monastary in Germay. See the Grand Canyon and South America.

I wouldn't buy a Sail boat or Horse Farm, nor jumbo house/property(too much maintenance).

So ya, go slow and in modest steps would pretty much sum it up!:beer:
 
R

RonnieG

Member
I see this thread is a couple of months old but I thought I would give it a shot. I found an old e-mail with my log in info, so here I am. Question..... what if I have $50k just lying around... is it the same as winning it????
 
I

Icewynd

Member
RonnieG said:
I see this thread is a couple of months old but I thought I would give it a shot. I found an old e-mail with my log in info, so here I am. Question..... what if I have $50k just lying around... is it the same as winning it????
Click to expand...

Welcome back, Ronnie!

I think the idea behind winning the money is that it is $$$ that you didn't have to work for, didn't have to save, didn't have any plans for. All of a sudden, it is just there -- "free" money to spend on something that you might not otherwise purchase.

Of course, you can only spend it once, so choose wisely.

Good luck!
:thumb:
 
R

RonnieG

Member
Thanks Ice, I will be thinking about that big one time purchase from now on til I win. Except after these many years of playing 10 lines each draw Im afraid it is starting to feel like I have earned the money but didnt get paid..... lol. lol.
 
R

RonnieG

Member
FOREX is not for amateurs, I like my odds BETTER with 10 lines per Powerball game. Yes it cost me $40 a week, if I dont forget to fire.
 
blitzed

blitzed

Member
RonnieG said:
FOREX is not for amateurs, I like my odds BETTER with 10 lines per Powerball game. Yes it cost me $40 a week, if I dont forget to fire.
Click to expand...

hiya RonnieG, yup irks me to miss out on a win when I worked out some numbers but did not get them into play:hair:

indeed FOREX can be wild...as with lottery, there are scandals, and some snakeoil systems.

free FOREX demo accounts can be fun, or micro accounts & microlots with low leverage...trading based upon the supply & demand, price action stuff.

cya
blitzed:spiny:
 
You must log in or register to reply here.

Sidebar

Top