why is it that more than more 70% of lottery winners end up going bankrupt eventually, after just a couple of years of winning?

Lets say someone wins the lottery for 3 million after taxes… why is it that they still end up going bankrupt?
My theory behind all this is that, only the poor and middle class people win the lottery. (that would be a fact, since rich people don’t gamble, they only take calculated risks..)
So a poor man wins the lottery. now the reason he’s poor is not because his earned income is to low but because he doesn’t know any positive things to do with the income he makes. (I think we can all agree on that). Instead of buying assets with his earned income he would have alot of liabilities and useless expensives.

Now he wins lottery for 3 million he still doesn’t know the game of money, so he would now be a RICH man, with a POOR mans mentality. Now if this is the case he would eventaully lead back to his old ways. Buy buying more liabilities and accuring no assets
this will end up leading him into the same problems he had when he was poor. So now all that changes is the amount of money he was but the RATIO stays the same. So if what I am saying is true.. all that would happen is he would now be in debt by the tens of thousands instead of a couple of thousands and then would be force to declare bankruptcy.

 

Comments

  • stupidity, greed, and incompetence.

    Money makes some people stupid… I don’t exactly know why.

  • they spend it as fast as they can ………..making no concessions for the future .

    oh well ………..sort of sad really .

    cheers !

  • because you don`t qet paid in full ;; you qet paid over time & people q crazy & buy thinqs beofre they have the money & qo way over on their expenses

  • winners are dumb whiners are smart.

  • eazye, I couldn’t agree with you more. You taught me actually. I didn’t know it before reading your post.

    Thank you.

  • Only some of them go bankrupt not all .Many of them are doing great business and earning lots of money and enjoying all the wealth and reaping more and more.

  • Why did you ask the question if you already knew the answer? People live beyond their means. They spend more than what they make. He wins 3 million, buys a 2 million dollar house, spends the rest on junk, then wonders how he’s going to be able to pay the house expenses. Like taxes, upkeep and utilities. Sells the house for a loss and the whole cycle starts over.

  • I think your evaluation is pretty insightful.

  • ‘Living beyond your means.’

  • I came into a lot of money and lost it all in about a year. It has to do with how I learned to deal with money from my parents. I did what I knew at that time; spend, cave into immediate gratification, no need to save, etc. My value system regarding money was a key factor in losing it.
    The other part was an underlying emotional issue, I didn’t feel I deserved to be rich, so I subconsciously drove myself back into the poor house.

    Incredibly poor people become incredibly wealthy. It has nothing to do with being poor or being in a certain socioeconomic class; it has more to do with your value system that you learned growing up. But that’s not an excuse either; eventually you have to grow up. Money brings with it responsibility. I wasn’t responsible with what I was given.

    These are just a few of the reasons. Losing it all brings regrets and lots of learning lessons.

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