Hey, Millionaire! Can money really make you happy?
Some people believe it can, but not most. The reality is that money can be a vehicle
for you to truly experience what life has to offer. Money can make you quit your tedious job,
so you can follow your dreams and do everything you want for the rest of your life.
But what happens when a person gets money out of the blue,
not ready to take it seriously? For instance, lottery winners - If not smart enough,
lottery winners can quickly turn into lucky losers. These types of lottery winners are more
likely to declare bankruptcy within three to five years than the average American!
Money didn't really make them happy, either. Instead of getting people out of financial
trouble, winning the lottery can get people into more trouble!
But why does it happen? Make sure to watch 'till the end for reasons why lottery winners lose it
all. Maybe, this video will help you avoid the same mistakes when you win the lotto jackpot!
12 - Winning Euphoria So, you've just won a life-changing
amount of money - how long do you think your euphoria will last? A day, a week, a month? How
about a couple of years before you spend it all?! Those small people who suddenly become rich feel
themselves almost like gods - the extraordinary shift throws them all the way to the skies,
clouding their minds. You should already know that money must be taken with a sober mind,
without any emotions. Unfortunately, it's a hard deal to treat millions calmly.
What's worse, winners believe they made this money, not because of luck, but because they've
deserved it. They falsely believe they can win again and earn money back. Don't treat
luck like a girl; treat it like a lady! 11 - Want to Make Friends and Family Happy
Of course, most of us are good people that want to share our happiness with the closest - family
and friends. These people were with you before you became rich - keeping them close
is a smart move. However, it's easy to spoil those you love the most, especially if this
enormous sum of money came surprisingly easy. Greed can change people drastically. Kind people
who always have treated you well will demand more and more - they'll believe you owe them something,
and they can make you feel guilty for being richer than them.
Terrible right? Yes, but keep watching. 10 - Taxes Take It All
Tax obligations can be tricky. Some winners don't even realize part of their money will be taken by
the government. Of course, some lotteries can give you a winning share with taxes already excluded,
but others will take a huge bulk of your precious fortune. How much will they take? 40-45%!
Next time you'll think about voting for Democrats - joking here.
Actually, jokes aside, some states in the US have their own income taxes
and will make you pay twice for your win! When you finally get the fortune in your
hands and want to share it with someone, don't forget to pay extra taxes! Yep,
the cruel world works that way. Want to give your darling momma a million? Pay the gift tax, which
can be up to 40%! That's why it's crucial to hire a tax advisor before doing any money movements.
9 - Taking a Lump Sum In case you still got something left after
getting robbed with taxes, there are other ways to take cash from you - one of them is a lump sum.
For those who don't know, lotteries offer you two different ways to receive money -the first
is taking yearly payments for a long time, and the second is accepting a lump sum. The lump sum can
be only around 60-75% of the actual cash prize! Of course, taking a yearly payment is the safest
way to receive the award - it will keep you rich for years, and you won't spend it all stupidly.
Unfortunately, most winners pick lump sum, not because they're afraid of inflation
and want to invest the money in stocks - they're just greedy and happily waste it all.
Let's imagine for a second that you're the one who won the lottery. What would be the
first thing you will do with the money? Where would you invest them, what would you buy first?
Will you consider taking annual payments, or would you instead lump sum? Share your opinion in the
comment section while we continue! 8 - Mental Accounting
A psychological term called "mental accounting" affects how people think about their money.
You see, lottery winners treat the money they have won differently
from the money they've earned. No matter the sum, what really matters is how they got this money.
They treat it as free money that can be quickly made again - they end up bankrupt, realizing all
money value the same too late. 7 - Spending Uncontrollably
What's the first thing a lottery winner does? Spends the money on something! Finally,
you can release the grasp, stop treating every penny seriously and treat yourself like a king.
This period might take years - the trap of spending is the easiest trap to fall into.
Luxury cars, brand clothes, watches, mansions - the moment you lose the grasp is crucial; it's
the last time you've seen your money. Consider not spending anything at all for a few weeks,
calm down for a bit and see what else you can do with your money instead of investing.
So far, we have seen some common mistakes but keep watching because the following are
the most important ones... 6 - Hidden Costs of Purchases
So, you've won the lottery, got yourself a new car and a new mansion. Have you considered how
much it will cost you to utilize all this? What's worse, people winning the lottery
immediately quit their jobs, losing the last stable source of income they got. With some
of them far from even considering investing, lottery winners constantly have a negative
balance at the end of the month. With more stuff to pay for, they're slowly losing all
the fortune they had. 5 - Bad Investments
What can be worse than lousy spending? Bad investing. The brighter portion of people
try to invest their funds, earn passive income, or start a new business.
Unfortunately, most of these wannabe investors don't know about smart investing,
not understanding how it works. So many business ideas went wrong... Even brilliant ideas fail,
but it's even worse when a not-so-educated person starts a business. Luck will turn away,
and the business will drastically fail. Plus, the worst thing that comes with
huge money is a surplus of acquaintances and so-called colleagues who simply want to take
advantage of you, so you end up investing in other's people business ideas or companies.
4 - No Financial Advisors
One of the ways to avoid silly spendings and business ideas is to hire a financial advisor.
That's probably the only person you can trust while dealing with colossal money - he is not
driven by greed and emotions; the man is highly educated and is interested in helping you out.
Unfortunately, only a few lottery winners seek professional help. Many lottery companies suggest
hiring financial advisors to the winners, but only a few take this advice. Instead, winners fall into
wrong suggestions, trust wrong people and make bad decisions without consulting a real expert.
You won't make the same mistake, right? Good, keep watching and pay attention to the next ones.
3 - Not Good At Saving Just as they're bad at
spending and investing, lottery winners are bad at saving. Although it sounds so obvious to us
watching them waste their money from the side, remember that we all never had an
experience saving millions in our portfolios! One study found that winners only saved 16%
of their entire winnings after receiving half of the amount. Of all the money lottery winners won
around the Earth, only 16%! 2 - Drugs and Alcohol
Money can't buy you happiness - that's a simple truth you should follow. You got a new problem
with a fortune in your pocket - dealing with this money. You can take it too seriously,
become neurotic, paranoid, stop trusting even your own family. Some unfortunate
winners have even committed suicide over the pressures of their sudden wealth.
Many winners found relief in alcohol and drugs. These are two major things you
should avoid in your life - they will definitely never bring any happiness.
1 - Bragging too much It's so hard to avoid bad habits, silly
spendings, poor business ideas. What's even harder is to stop bragging about your insane fortune!
To help winners, lottery services let collecting prizes anonymously.
We could save ourselves from so many problems, but thanks to social media, we only bring them.
Let's share the news with the world - I am a millionaire! Even without saying it out loud,
people share photos of their fancy cars, costly watches,
and vast mansions for others to be greedy. It's a small world, rumors spread fast,
and within a moment, everyone out there - family members, friends, and onetime acquaintances
will knock on your door demanding their share of the cash. In contrast, robbers will enter your
house without even knocking, but they behave similarly when you hit the Lotto Jackpot.
But what do you consider the worst way to spend your lottery prize?
Share your opinion in the comment section! If you enjoyed this video, Make sure to check out our
video on the DUMBEST Lottery Winners EVER! They made sure to make all of these terrible mistakes!
Don't forget to like, share, and subscribe; it goes a long way, and it's free.
Until next time, stay wealthy and smart, and I'll see you in the next video.