Winning the bulk of the money in a lottery is considered to be a blessing for some people. This activity has entertained people for quite some time. Most countries around the world have their national lottery which is usually run by the government. It is not surprising if this kind of distraction is tremendously popular because most of us hope to be instant millionaires. However, even gaining in a lottery will solve all the financial problems; some winners assumed that they become bankrupt later. Why do lottery winners often go broke?
They can’t control their spending
Obviously, the lottery winners are excited and dazzled about earning millions suddenly. They may spend without controlling. For example, they share their money with their family, relatives, or friends. According to the proverb “Wealth brings many new friends, but a poor man is deserted by his friend”, everyone wants to be their friends and asks them for money. They may share their problems and promise to give the money back. As a result, the winners can ruin their finances due to their overspending.
They lack help from the professional financial advisors
People who become rich by chance need professional financial advisors in order to help them manage their financial situation. For example, the specialist can help the gainers with taxes, ensure their lifetime enough revenue, and many others. Unfortunately, few lottery gainers search experts to aid them. Even it is an obligation for the winners in some nations like the UK; most of them invest their money on their own wish.
The actual payouts may let them down
Sometimes, the winners in the lottery might despair when they got their money. Before taking their winnings, they have already built projects. Some bought jewelry or other precious things. Mind that the lotteries have their own policies. For example, most of them take monthly or yearly payment whereas others pay the big sum of money directly. In addition, many winners lose hope when they take their actual winnings. Owing to the taxes, their prizes will reduce around 60 to 75%. Imagine, when the gains are expected to be 100 million pounds, with a minus of 25 to 40%, they will certainly be disappointed. Read this story about 1.6 billion winner.
Mental Accounting Attitude
Mental Accounting is a psychological behaviour that affects the way we spend and save our money. Therefore, people who win in lotteries use their winnings differently. Thus, they can squander lottery earnings because they find it as free money. This case is also available to all the gamblers because some winners are binge buyers. Thanks to the gratis spins casino, you are able to try the games on free mode before wagering. Hence, punters can increase their chance of winning when they practice before using their funds.
They pay more bills because of their fortunes
In every country, the amount of your bills depends on your wealth. The lottery winners can afford to buy big and luxurious houses. They can also buy expensive cars, boats, yacht, and else. However, some of them don’t realize that these riches will increase their bills. With these different types of charges, they may face uncontrollable financial losses.
Their projects to gain extra incomes fail
It is undeniable that winning lots of money on lotto is a dream came true. You can buy everything you want, pay your bills, and why not investing in projects to get more money. Nonetheless, your plan can derail without any strong and serious approaches. When the lottery winners didn’t study these investments, their project failure will be considerable. Obviously, it leads to the loss of huge amounts of money.