Imagine that one day you wake up rich, having won an impressive sum of money in the lottery. So, you have become a millionaire overnight. How would you manage your prize money?
The turnover of the global lottery business is tens of billions of dollars a year. In the USA alone, it accounts for 30 billion, in Japan – 8 billion, in Italy and Spain – nearly 6 billion. Thanks to the lotteries, people get rich one by one every week around the world.
Almost every person at least once dreamed of being among the lucky winners, but the "money that fall from the sky" don’t make everyone happy. Many have squandered it aimlessly and were left with nothing.
We give you real-life examples of situations when people could not save their wealth.
Failed to get rich
Vivian Nicholson, USA
In 1961, an American citizen Vivian Nicholson won the lottery – $3 million. When journalists asked her about how she would spend the prize money, Vivian replied: "Spend, spend and spend again!". The woman spent it in five years. During that period, she widowed, married several more times, became addicted to alcohol and spent a long time in a psychiatric hospital.
In the photo: Vivian Nicholson lost her job and family; she spent the rest of her life living on a small pension.
Janite Lee, USA
In 1993, while living in America, an emigrant from South Korea won $18 million in the lottery. The woman spent a significant amount of prize money on the foundation of the charitable organization to help Koreans in the United States and a little over $1 million on donations for the University of Washington.
In the photo: Janite Lee with the 42nd President of the United States Bill Clinton at the opening of the charitable organization.
The rest of the money was spent rather carelessly. Janite got carried away gambling everything she won. She went bankrupt and was pretty deep in debt. Seven years after winning the lottery, her debt exceeded the amount of 200000 dollars.
Michael Carroll, UK
In 2002, a resident of the "Foggy Albion" won $15 million. Within several years, he spent every penny. The man spent his prize money on parties, entertainment and drugs.
In the photo: Michael Carroll became penniless and was forced to return to his previous job. He began working as a waste collector again.
After reading these stories, many of you may think that those people were sloppy and ignorant, since they failed to save their money, and if you swapped places with them, you would act differently. However, are you sure that you would have acted more maturely without making the same mistakes?
The main problem of most people is that they cannot save their money.
Without knowing how to preserve money, a person manages finances rather poorly, risking of losing everything he/she has in the blink of an eye.
How to preserve and avoid losses
The chance of winning a big prize is one in 120 million. Inheriting a great fortune is a rare occurrence for the lucky few.
However, a wise approach to money and its preservation works successfully regardless of how much money you have: a small amount or millions. If you want to preserve what you have, you need to understand how to do it properly.
The ability to preserve money will help you to avoid losing it, as well as manage finances wisely and rationally, allowing you to feel financially stable at all times without worrying about overdrafts.
The ability to preserve money wisely – the first step towards Financial Security.