People who win the lottery are often excited, and overwhelmed, with the possibilities.
Unfortunately, that can lead them to make poor choices with the money they were given. When that happens they can even end up bankrupt in a short period of time. It’s easy to wonder how someone who wins millions can ever end up without any money, but it happens quite frequently.
Understanding why can help people who aren’t lottery winners learn how to manage their money better, whether they’ve received a smaller windfall, they might be looking into bankruptcy, or they just need some incentive to start saving more and spending less.
The Bankrupt Lottery Winner
A lot of lottery winners become estranged from their family and friends. They can end up with depression and anxiety, along with alcohol, drug, or gambling problems. Often, what causes these issues is the pressure they feel from others who want to “borrow” from them, or who think they should be given money because they’re related or have known the person for a long time. Lottery winners can be bombarded with requests for help and money, and sometimes they are too generous with their gifts. They also become targets for scammers and thieves.
Additionally, people who win the lottery may change the way they do things. They might start buying expensive clothing, or taking long trips. They could buy a bigger house and a nicer car, or choose flashy jewelry and expensive meals.
Some give to charity, too, and do good things with their money, but no matter what they spend it on, they will still be losing money over time. That lower amount of money can lead to concerns over how fast the money is being spent, and it can also lead to denial that the money may be dwindling, both of which can spell problems for anyone who has big lottery winnings.
The Examples are Numerous
There are many lottery winners who have ended up broke, sometimes not very long after they got their winnings. Usually, it only takes a few short years for them to spend all of the money they received when they won, and then they’re right back where they started. Many of them are even worse off, because they quit their jobs and ended up in massive debt, in addition to spending everything they received. Callie Rogers won the UK lottery at 16, and spent 1.9 million pounds on parties, drugs, and plastic surgery. Today at 26, she’s worth about 2,000 pounds instead.
Lisa Arcand used her one million dollar winnings to buy a house and a car, and then she opened a business. That seemed like a responsible way to do things, but the place didn’t do well and she ended up behind on her bills. The business had to close, and she lost everything.
Suzanne Mullins is another lottery winner who really struggled, even though she won $4.2 million. With a sick son who accumulated over $1 million in medical bills and some bad decisions about taking out loans, she lost all the money she had been awarded.
There are many more lottery winners who have experienced similar problems, and winning a lot of money isn’t always the help that people need. If you are facing bankruptcy or are concerned that your finances may be headed in that direction, the time to get some help is now. Contact the Chris Wesner Law Office to start getting your bankruptcy questions answered.