That lottery winners typically do become destitute again is true, but it’s not because they blow all the cash.
Lottery winners are subject to a lot of pressure from other people who want that money. Hostile divorces, scams, and familial financial abuse are all really common. Winners are rarely informed of the financial instruments the wealthy typically use to protect their wealth, and thus have a much higher financial attrition rate.
They also tend to be less aware of and prepared for future financial precarity. The concept of being “set for life” seems to result in a really high rate of underinsurance, so when an unexpected financial hardship like a house fire or major car accident occurs, they’re typically unprepared for that hardship.
If I won a lottery I would donate almost all of it nearly immediately to various causes and family and friends, it would solve a lot of problems for those around me. I don’t think I would be willing to hoard it up in a stock portfolio and cold shoulder everyone around me. I know homeless people, people with crippling medical debt, people who are about to get evicted, people who have severe alcohol or substance abuse issues. I could fix nearly all of this if I was just loaded.
That lottery winners typically do become destitute again is true, but it’s not because they blow all the cash.
Lottery winners are subject to a lot of pressure from other people who want that money. Hostile divorces, scams, and familial financial abuse are all really common. Winners are rarely informed of the financial instruments the wealthy typically use to protect their wealth, and thus have a much higher financial attrition rate.
They also tend to be less aware of and prepared for future financial precarity. The concept of being “set for life” seems to result in a really high rate of underinsurance, so when an unexpected financial hardship like a house fire or major car accident occurs, they’re typically unprepared for that hardship.
If I won a lottery I would donate almost all of it nearly immediately to various causes and family and friends, it would solve a lot of problems for those around me. I don’t think I would be willing to hoard it up in a stock portfolio and cold shoulder everyone around me. I know homeless people, people with crippling medical debt, people who are about to get evicted, people who have severe alcohol or substance abuse issues. I could fix nearly all of this if I was just loaded.