Yes, you’ve just won $600 million! Now what?
Well, if you’re like 70% of other instant millionaires, you’ll demonstrate unsound judgement, make poor investment decisions, fritter your money away and, eventually find yourself destitute, friendless, and alone (What could happen to you: tales of big lottery winners – U.S. News). Don’t believe me? Check out the sad tales of these former lottery winners: How the Lives of 10 Lottery Millionaires went Disastrously Wrong ….
What is it about huge monetary windfalls that transforms the average person into a compulsive spender? One day, they’re just trying to make ends meet and, then next, they’re suddenly demonstrating the financial acumen of successful pro athletes (How Millionaire Athletes Spend Their Money and Go Bankrupt …, 15 Pro Athletes Who Lost Millions and Filed for Bankruptcy, Top 10 Bankrupt Athletes – Kidzworld).
According to this article – Riches to rags: Why most lottery winners end up broke – Yahoo … – it’s human nature to adjust our consumption based on what is available to us.
So now that we know what the problem is, how do YOU avoid inevitably finding yourself penniless and living in your parents’ basement?
Well, you can try following my helpful advice:
1. Take half of whatever you’ve won and put it in the bank or in a safe, very conservative investment. The other half is your spending money. THIS is your keeping money, only to be touched in cases of emergency (ie. mortgages, life-saving medical procedures, ransom payments, etc.).
2. Tigers and other exotic animals are poor investments.
3. As are flashy new cars.
4. Creative endeavors like scifi shows and low-budget horror movies on the other hand…
5. If you haven’t heard from a friend or family members in the three years prior to becoming rich, don’t rekindle those long-dead relationships once they come a-calling. And they will come a-calling. Limit your generosity to close friends, loved ones and, of course, the writers of blogs your frequent on a semi-regular basis.
6. Dude, you’re already rich. Don’t try to become richer by investing in that sandwich franchise, state-of-the-art wig factory or Kanye West Cologne.
7. Try not to get bumped off by your next of kin.
8. Avoid doing anything that might get you sued like drinking and driving or being alone with anyone at anytime.
9. Drugs are VERY expensive.
10. So are good-looking women/men.
11. That entourage/helicopter pad/set of yellow diamond grillz – not as cool as you think.