Friday, May 4, 2007

Lotto Winner goes from $5.5 Million to Broke

Lotteries, two big problems. I've had the debate a million times with a friend of mine, you know who you are.

Lotteries target people who are poor at managing money, it's not the amount of money you have... it's your ability to live within your means.
Lotteries target people who are bad at math. Odds are you aren't going to win!

So, let's look at the first, "Lotteries target people who are poor at managing money." We know this because if you investigate the numbers, the average person who plays the lottery spends $35 a month. Anyone who is good at money management would never spend this amount for no return. (Just the chance of a return.)

An article appeared on April 30 JS Online about a guy who won $5.5 million dollars in the lottery has now had to sell his house and lives on a pension because he's broke.

His fiscal downfall followed what has emerged as something of a pattern among lottery winners nationally: Someone with little training in dealing with vast sums of money gets a sudden windfall, only to see it tumble maddeningly into the wind.

The second, $35 into a growth stock mutual fund monthly over a 40 year time span will give you a Million Dollars EVERY TIME! Why would you spend that money on the "hope".

Dave Ramsey says... "If people were good at math, they wouldn’t be in debt in the first place." This is also a case where Dave's "selling crock pots, not microwaves."
JS Online - Lottery winner blames bad advice for his losses

No comments: