Life After Lotto

prizewinners

Most people imagine that life is pretty easy after you win the lottery. However, there are so many little things you have to look out for. Winning the lottery forces you to become extra cautious with how you spend your money and who you hang around with. Those who don’t heed these warnings often end up regretting it later. Here are some common experiences people have after winning the lottery.

Exploitation

There is a reason many people hide the fact that they’ve won the lottery. They’re afraid of what will happen when those closest to them find out about their sudden influx of cash. Friends, family and acquaintances will typically come to you with their sob stories. They’ll try to tug on your heartstrings in an attempt to wrestle some of your money away. Make yourself aware of the people in your life who are consistently asking for money. These are the people you should steer clear of.

Change in Friends

When you suddenly have a ton of money, there’s a good chance your friendships will change. In fact, it’s highly likely that you’ll lose touch with many of the friends you had before you won the lottery. Why would winning the lottery change your life in that way? Think about it like this: most people purchase a new home with their winnings. Moving to a nicer, more affluent neighborhood means you’ll be interacting with a whole new group of people. Your children will attend new schools and make new friends. You’ll be running in new circles.

People Expect You to Pay/Give

When you win the lottery, everyone you know is going to expect you to hand over a bit of your cash. Whether it’s dinner at a restaurant and they assume you’ll pay or solicitations from your friends on behalf of themselves, a cause or charity. People will start coming to you with the expectation that you’ll always give them money. Make sure you set boundaries with friends and family. Be clear with your intentions and don’t be afraid to say no.

Reckless Spending

Reckless spending is something that comes with the lottery territory. When people are presented with a large sum of money, their brain tells them they can afford lots of expensive items. While this may be true to a degree, spending recklessly is a bad idea. An article written by Michelle Crouch for rd.com explains, “Life after winning the lottery may not stay glamorous forever. Whether they win $500 million or $1 million, about 70 percent of lotto winners lose or spend all that money in five years or less.” If you want to be one of the 30% who holds on to their money longer than 5 years, find financial professionals you trust. They can help you invest your money and set yourself up for the future.

Life after winning the lottery can be dicey if you don’t know what to expect. Find qualified professionals to help you navigate through the changes.