“Imagine the freedom” is an often used marketing slogan of the Ontario Liquor Gaming Corporation for the 6/49 Lottery. Anyone’s life will change after winning the lottery. But will it be easy street or disaster?
The Impact Of Sudden Wealth
Sudden unexpected wealth hits the recipient hard simply because life will suddenly change. It doesn’t matter if it’s from a recently deceased unknown wealthy aunt or the lottery win.
The impact of change appear to be due to two main reasons:
a) the size of the lottery win;
A smaller win simply means a lot of calculating what you can or cannot blow money on. The entertainment is more moderate of course. Perhaps paying off all debts and a modest home, car, children’s education, investment amount, set up a business and perhaps a holiday is in store. It may not even be enough to quit your day job yet.
A huge win like those $50 million dollar wins in Lotto Max will like create the opportunity to have a drastic life changing event. Yes, winners are often quoted as quitting jobs and retiring or seeking the best medical treatment and perhaps a new larger house, helping out some great supportive friends and family.
b) the mental readiness of the winner.
It is perhaps this point that will make or break the winner of lotteries. Sudden wealth is often squandered or worse, the winner goes into more debt than winnings simply because they cannot fathom the value of their money. It has been well documented that up to four out of five lottery winners, large or small lose their fortunes and wind up with unpaid massive debts.
However, the remaining winners are far wiser and careful. They are more strategic and think things over with lots of advice from a variety of sources. However, most of them simply play it safe and conserve their fortune. Imagine trying to live off the so called “safe” investments that pay less than the costs of inflation and taxes combined. They are whitling away their cash through the years.
Then, there are the rare ones who actually plan and develop some long term strategies to actually build more wealth. They only live on a modest amount and invest the rest in well diversified, growth oriented businesses. In the future, they do become even wealthier and literally live the lives of the very wealthy.
Personal Mastery Over Money
Who rules? Your money or you? Like most people who are slaves of not having enough money they are working towards insufficiency. They work, mortagage, borrow, then pay and pay for their credit. Actually, it should be they pay the interest and live on borrowed time. Eventually, inflation will and not enough savings and income will reach out and choke the lifestyle out of you.
The people who become the envy of the world have usually become wealthy by building their wealth one dollar at a time. They plan their businesses for full income over a period of two to five years. They sacrifice and not sqaunder their money. They invest and live off those proceeds while saving most of it for investment. This is the way of successful people.
A lottery win simply lets them build their wealth even faster. But come to think of it, could it have been the Law of Attraction working out well for them in the first place? Winners in business or the lottery are always positive about being a winner. But it is simply unfortunate that many lottery winners have not developed their personal mastery over their money like the successful people have.
Life after winning the lottery does change significantly for most winners. But it is after a time of perhaps two to five years that we can see who the true winners are. They are the ones who have expanded their new found wealth even further with well laid out plans and sacrifice before truly enjoying the fruits of their wealth.