Comments: Lottery Winners

I usually don't post two "comments" posts on the same day, but there's lots of good stuff here that I want to share with you.

These comments were left on a post I did titled "Eight Lottery Winners Who Lost Their Millions". Here's the first comment to the post:

If people can't manage their money properly when they make $40,000/year, what makes them think they can manage millions? Many people will always live paycheck-to-paycheck no matter how much money they make.

Unfortunately, this is true. Many people just can't control themselves when it comes to money -- no matter what their income. They'll spend it all if they make $30,000 per year or $300,000 per year.

Here's another comment along these lines:

In case anyone hasn't noticed the pattern. Thousands have won lotteries in this country over the last 30 years. Many didn't do as lousy as these eight. You should notice that all of them don't know how to manage their life. Period. They not a single idea of what "wealth" is. Either are people around them. Even people surround them didn't help blow the loot away, they would've gamble them away, or spent them on things they shouldn't be. Think MC Hammer.

If I have won any sort of monetary contest (I didn't, but my wife did. And no, it wasn't lotto), I would follow two rules that my hero Warren Edward Buffett gave to the American public,

Rule #1, Don't lose money
Rule #2, Don't forget Rule #1

You can't go wrong following WB. Can you?

I ended my post by asking: "What do you think would happen to you if you won a few million dollars? What would you do with it?" Here's a response:

Rather than blow all the money, I'd be inclined to pay off my home (which I love) and replace my wife's aging minivan (but not with something horribly expensive, we just don't live that way). I'd also be looking for some serious investment advice from people I trust and do a few nice things for family and make some small contributions to charities we believe in. Ideally, we'd be able to take some small actions (family, charity, etc.) and then spend some time figuring out what to do next ... how to invest, what to invest in, how our life plans might change as a result of the new income ('cause I'd rather continue to make money off of the winnings than blow it all up front). It sounds so easy, yet it seems to be so hard for most lottery winners ... I can only hope that: 1) I someday were to win (which would mean I'd have to play the lottery) and 2) I could hold to the financial plan without completely losing my head in light of the financial windfall.

Good (and honest) thoughts.

Finally, here's a comment that tells it like it is:

Since you're an MND fan - in The Millionaire Mind, Dr. Stanley notes that the richer a millionaire is, the less likely he is to ever play the lottery.

Ha! Very good, Cathy. Great comment!

Comments

[christine]

there are people near you some where who needs your help if you win the lottery.like me i am 46 female sick alot but cant afford to see a doc. i gave up my job 6 years ago to take care of my mom who had a wish and even though i am sick i try to win the lotto to see her dream come true but no luck, please think of the people who would appreciate a few thousand to make a dream come true.