Would you pay $1.00 to loose your family, go into debt, go through bankruptcy, have your family kidnap you and kill you? Well, that’s what a number of lottery winners have had to experience because of a winning $1.00 lotto ticket.
The main reason? Lottery winners don’t know how to handle gifted money. Consider Florida lottery winners. For example, a number of the winners didn’t use their winnings to pay off debt. In addition:
Prior research has shown that lottery players have below-average incomes and education; it’s no great leap to assume they tend to have limited financial literacy (even compared with a general population that has been shown to sorely lack it). Winners might also engage in something behavioral economists call mental accounting by treating their winnings less cautiously than they would their earnings. Of course, winners might simply “develop a taste for luxury goods that outlasts their money,” the researchers write.
And even if you could handle your money well you are going to have to learn the power of the word, “NO” when the request for financial help comes. Sadly, Jeffrey Dampier‘s sister-in-law and her boyfriend thought the best way to get Jeffrey’s money was to kidnap him and demand a ransom. In the end, Jeffrey was murdered and the kidnappers were convicted of murder.
The statistics don’t lie. Most lottery winners will loose everything. It doesn’t have to be that way and there are some lottery winners who are living well. Their suggestions are to simply be cautious with friends and family financial requests and treat the money as if you earned it.