Stories like this are often told: people who win the lottery and a few years later are faced with disaster.
Former millionaires (thanks to the lottery), living in a trailer with a lot of debt, are not the rule, but unfortunately not an exception.
Sudden wealth radically changes daily life, much more than one can imagine. The impacts are significant!
It is not for nothing that a person who wins the jackpot must first visit a consultant before his money is handed over. During these interviews, the consultants take the opportunity to warn the new millionaires against 7 misconceptions, which can quickly cost an entire fortune. Unfortunately, this advice is not always followed.
“I’ll stay quiet.”
A million euro profit, is a bit of a shock. The brain is stressed, adrenaline is released and some even go into a panic.
Of course, there may be some people who remain unaffected by the news, but be careful not to underestimate the emotional rollercoaster that is happening inside you. If you imagine yourself staying super cool, you may be overestimating yourself, especially when it comes time to make some tough decisions. Having a large fortune can cause some people to rush into things without thinking about the consequences.
“Shared happiness is double happiness.”
Lutz Trabalski, a lottery consultant, has made an observation over time: people from modest backgrounds have a particular need to share their profits with others. They’ve known hardship and feel a kind of shame at the idea of being rich “without deserving it.”
But this generosity has a boomerang effect: faster than you think, you are surrounded by envious people, some new millionaires are even blackmailed or attacked.
We don’t ask rich people for money, because we think they won’t give anything anyway. Those who win the lottery, on the other hand, are solicited from all sides, because according to the general thinking, they have not earned it.
The most important rule to follow is “Don’t tell anyone about the win”. Not to friends, not to neighbors, not even to relatives. Those who want to do good with their millions should instead give them anonymously or donate them to an organization.
“Give children a better life.”
All parents want their children to one day be better off than they are. However, minors should be spared this.
For if they know of a sudden fortune, who could then convince them that doing well in school is important? That you can’t buy true friendship? That sometimes it’s good to set limits?
After a big money gain, it’s essential to keep the kids living a normal life. It’s not an easy task when you can suddenly offer them everything, but it’s about their future and their ability to learn to support themselves.
“Dreams do come true.”
When asked what they would like to do with the millions they’ve won, most winners say, “make my dream come true!” Unfortunately, this sometimes leads to hasty and ultimately costly decisions. Because these dreams absolutely do not include a resourceful financial plan.
There is certainly nothing wrong with traveling the world. However, larger expenses or projects, the consequences of which have not yet been thought through, should be approached with caution.
The average jackpot is 9 million euros. Spread over 10 years, you have 75,000 euros per month, spread over 100 years, 7,500 euros net.
But wealth is relative. Lotto millionaires often make mistakes because they cannot yet estimate the dimensions of what wealth means.
Above all, lottery winners do not have a strong network of trusted people, advisors and contacts. Therefore, they easily become victims of scams.
“I will quit.”
Many new millionaires’ first resolution is to quit their jobs. Some think they’ll never have to work again, others want to become self-employed as soon as possible. But Lutz Trabalski warns, “Don’t quit your job! At least not so soon.”
The money goes fast, because maintaining a large property, cars and a yacht is really not cheap. Even millionaires, who invest their profits in their own business, often get it wrong: since no loan is needed, no one checks the business plan with a critical eye. The company grows too fast and too big, the risks are ignored and the lack of personal experience is underestimated.
On the other hand, the social aspect of the business should not be ignored: most of the personal contacts come from the working environment and the work routine helps to keep a cool head at the beginning. This “down-to-earth” element is extremely important in view of the unusual financial leeway now available.
“No more worries.”
Sudden wealth also has its drawbacks.
Not everyone is necessarily happier with this new life. Some people are suspicious of others because they fear for their money or only being liked because of it. It is not uncommon for lottery winners to become dissatisfied with their appearance, undergo cosmetic surgery and compensate for their inner emptiness by consuming. And doesn’t a new life include a new partner? Sudden wealth often results in divorce.
Lottery winners are not necessarily happier, they are just lucky. That’s the big difference,” says Trabalski.
It’s important to stay calm, sober and low-key so your loved ones don’t slip through your fingers. Only those who plan their spending in a disciplined way and maintain as much normality as possible will enjoy their wealth for a very long time.