JACKPOT!!! You just won the lottery and it’s worth $530 million!!! You’ve been spending so many years (and so much money) waiting for this moment! Good thing you have a concrete financial plan to grow that money even more, right? …..Right?
Here’s a not-super-shocking-but-still-awful fact:
Around 70% of lottery winners declare bankruptcy a few years after winning.
SEVENTY PERCENT! Sheesh those are some high chances. And what are the odds of winning the lottery again?
Somewhere in the ballpark of 1 in 300 million if I’m not mistaken.
If you didn’t have a sense of money management before winning the lottery, why would you suddenly be a master of finances once you receive a large sum of cash? People genuinely believe that if they win the lottery – they’re set for life. Tsk tsk.
They don’t even consider the fact that having good money management and a plan for the future could ensure the same thing! Let’s look into why there are so many misinformed people out there.
The Illusion of Control
“Damn it, I was only 1 number away! Okay here we go, this next one is all me.”
This person has taken on the belief that they HAVE to win soon – it’s only a matter of time. The illusion becomes engrained as fact, and there is little you can say to convince them otherwise. Research shows that people genuinely believe their luck is higher if they choose their own lucky numbers, as opposed to having computer generated ones. No wonder their illusion of belief is strong!
Time Spent Playing = Commitment To Continue
There are many people who’ve gambled / bought lottery tickets for decades. It started as a pastime, but stopping cold-turkey was never an option. The amount of time people have spent is viewed in their eyes as a dedication …should I even mention how much they’ve probably spent over the years? The logic in stopping, in their eyes, is viewed as “giving up”.
Easy To Pass Off As Small
It’s only a $5 ticket every day. It’s only a $20 ticket once a week. It’s only $100 at the casino every month. It’s only this, that, and everything that is the opposite of a concern, apparently. It’s easy to justify the size of the occasion while turning a blind eye to the patterns of behavior. That doesn’t make it logical, nor does it make it better for anyone involved. I think I hear someone’s wallet crying in the distance.
Impractical Optimism
I’ll never say that having an optimistic state of mind is a negative trait. However, it can absolutely work against your favor in these instances. We’re going to get lucky today! I’ve been having a good week, there’s no way I’ll lose money tonight. I just got a pay raise – this is a sign that I’m going to be swimming in money soon!
Just trying to imagine the chances of winning the lottery is almost an impossible feat. 1 in 300+ million. I guarantee you have no idea what 300+ million of anything looks like. So since we can’t visually calculate it, our brains decide the chance is just as good as 1 in 50 million.
What I’m Getting At
The idea of money management isn’t sexy for those who don’t have it. But let me tell you, as someone who recently figured out her way to financial freedom, it’s the sexiest thing I’ve ever done. Discussing these topics with other people is crucial & only strengthens my decision to take control of my money. Don’t let your money control you.
Money is a tool. Not a goal.
Level up!
