"People who were little, ordinary people, all of a sudden become extraordinary. They're euphoric. Thy lose all sense of reality. They think they're invincible and powerful. They think they're Superman."
A lot of winners' friends and family treat them like human banks.
Family and friends
Believe it or not, most financial advisers agree that the biggest problems that lottery winners face are their family and friends. You may not fall into the trap of thinking your wealth is infinite, but escaping family or friends is another matter entirely. This one is a lot trickier.
Worse, if asking or demanding money from you won't work, there's a good chance some of them will resort to guilt trips and manipulation.
Blindly Investing
You have to do your due diligence to succeed. The problem is that many lottery winners take them on without much scrutiny.
There's a reason that millionaires who got rich through hard work are less likely to go bankrupt compared to those that become rich overnight - they know exactly how to handle it and they surround themselves with the right people. It's not a bad thing to spend your money on nice things, but just like most things in life, do it responsibly and in moderation.
I used to work full time from 1998 December to 2001 September, I made net income over $110,000 dollars. But I ended up with less than $16,000 dollars when I got laidoff in Sept. 2001.
I bought a brand new car in 1999. What I should do is to be humble. Buy a used certified car in less than $5,000 dollars, spend time to learn how to handle my driving habits and controlling expenses. I should not replace my used car $1600 dollar over less than 3000 miles driving with a brand new car, over $19,000 dollars in finance.
There's a reason that millionaires who got rich through hard work are less likely to go bankrupt compared to those that become rich overnight - they know exactly how to handle it and they surround themselves with the right people. It's not a bad thing to spend your money on nice things, but just like most things in life, do it responsibly and in moderation.
Actionable Item
I used to work full time from 1998 December to 2001 September, I made net income over $110,000 dollars. But I ended up with less than $16,000 dollars when I got laidoff in Sept. 2001.
I bought a brand new car in 1999. What I should do is to be humble. Buy a used certified car in less than $5,000 dollars, spend time to learn how to handle my driving habits and controlling expenses. I should not replace my used car $1600 dollar over less than 3000 miles driving with a brand new car, over $19,000 dollars in finance.
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