If you’ve ever won a lottery, you know how important it is to treat your winnings responsibly. You’ve probably read stories about people who spent their winnings recklessly or made bad investments. In fact, lottery winners are half as likely to file bankruptcy in the first two years as those who do not win a large sum of money.
It’s true that if you’re lucky enough to win a lottery, you may feel like you’re living the life of your dreams. You’re likely to spend your money more often, make riskier investments, and even give your winnings away. However, it’s also possible to lose it all.
For instance, Evelyn Basehore lost most of her winnings in the early 1990s. She was awarded a $1.4 million prize in 1985, and by 2000 she had none left. Instead of keeping her winnings, she moved into a trailer and gambled them all away.
Another case involved a man who spent all of his winnings on cars, a house that doubled as a nightclub, and expensive gifts. He also spent money on legal entanglements.
On the other hand, there are stories of lottery winners who have changed their lives for the better. For example, Callie Rogers started building a home for her mother and three children after she won $3 million in 2003. She was only 16 at the time. She promised to manage her winnings responsibly.
Then there’s Daryl Ingram, who survived a heart attack in 2022 and a major health scare in 2022. He still doesn’t know whether he’s really lucky.