What if You Won the Lottery… And Then Lost It All?

by Kristina on February 15, 2012 · 5 comments

stack of cashGood Morning DINKS.  If you read our blog on a daily basis then you know that I am huge fan of Mr. Anderson Cooper.   I think that he’s intelligent, well spoken, charming, charismatic, and very good looking; it also doesn’t hurt that he has a million dollar smile.  All this to say that I try to watch his new talk show Anderson on a daily basis.  Minus the celebrity visits, which never interest me, Anderson Cooper has some very interesting topics. He recently featured lottery winners who suddenly came into loads of money…and then lost it all.

I am not sure what is worse, winning the lottery and loosing it by continuing to gamble or winning the lottery and loosing it all by spending it excessively.  I am so extremely obsessive about counting my money that if I won the lottery I don’t think that I would spend it on lavish items.  I had a car and I sold it because I never used it, and I chose to rent over buying a condo because the commitment and responsibility really freaks me out, so I am never going to buy a house.

If I won the lottery I would definitely take some time off to travel, actually that’s not true.  I would travel while I work remotely.  I can’t imagine a world where I don’t have to work 12 hours a day!  I would definitely spend some money on a really good immigration lawyer so that I could get an American Green Card and move to New York City to pursue my dreams of becoming an author.  If I won millions of dollars in the lottery I don’t know if I would be able to wake up each morning knowing that I lost it all because of my own mistakes.

Some people cannot handle receiving a large amount of money in a lump sum payment, especially if they have never been good with money. Anderson Cooper interviewed a guest named Rhoda who admits that she was never financially savvy. She never had to be good with money because she never had a lot of money.  After winning 47 million dollars in a state lottery Rhoda purchased a 13 million dollar home, she had an extravagant 2nd wedding, she purchased multiple luxury cars, and she bought a large RV.  However only 2 years after winning the lottery Rhoda ended up in jail because of tax fraud.

Even after being released from jail Rhoda said that she has never recovered financially, she currently lives in poverty in a home without running water. Anderson Cooper asked Rhoda what she would do differently if she ever won the lottery again. She said that she would hire a financial advisor, get an attorney, and find a good accountant. Rhoda admits that she lost her millions because she did not plan well.

Tips to Be Financially Savvy with Your Money

  • Trade in Your Old Electronics.  If you have any electronic devices from an old stereo to a cell phone you can trade them in for store credit or cash at stores such as Target and Staples.
  • Raid Your Closet.  If you have anything in your closet or dresser that you have not worn for 6 months then get rid of it.  You can donate it or you can try to sell it at a vintage shop.  If one store turns you down then try another store, very often different stores carry different items.
  • Search for Unclaimed Money and Property.  Very often people may forget about money that is owed to them.  Visit old Missing Money or Unclaimed.org and type in your name to find old Safety Deposit Boxes, Missing Pensions, and Forgotten Checks that are owed to you.

Photo by PurpleSlog

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{ 4 comments… read them below or add one }

1 Money Infant February 15, 2012 at 7:19 am

I suppose I would cry for a week and then I would get back out there and look for another way to get my lavish lifestyle back. No I wouldn’t because I don’t play the lottery so there’s no way I could win :p

2 crashdamage1957 February 15, 2012 at 11:37 am

I am also a non player. I just dont understand people that drop $10 or $20 a week on tickets when they are not maxing out their 401k or IRA first. But then again, I’m just not wired that way. I dont get the high from wagering money that some people do, but i do like investing money in mutual funds, in the expectation that my money will grow, rather than diminish. Perhaps it’s the same wiring, just different connections.

3 cashflowmantra February 15, 2012 at 3:08 pm

I don’t play the lottery, but can’t imagine losing $47 million. That is just absolutely crazy.

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