Mistakes of a Lottery Winner

lottery winner

A lottery winner is someone who has won the big prize, which can be anything from a few thousand dollars to a multimillion-dollar jackpot. The money may be used to improve one’s lifestyle, buy a new home or car or help out family members and friends. The jackpots are often advertised in newscasts and on the internet. The largest jackpots can be the most lucrative for lottery game makers, but they also tend to attract a lot of attention from potential winners.

The problem is, a sudden influx of cash can make people change drastically. Whether it’s good or bad, it can affect everyone around them. One of the biggest mistakes lottery winners can make is flaunting their wealth. This can make other people jealous and cause them to seek revenge or even steal from the winners.

Another mistake is over-spending. Winning the lottery can be a huge temptation, especially for young people. British teenager Mickey Carroll, known as Lotto Lout, tore through his winnings with astonishing speed. He spent millions on cocaine, expensive clothing and gifts for friends. He ended up homeless and broke just 12 years after his win.

It’s also important for winners to have a plan of what they’re going to do with their winnings. For example, they should decide whether to take a lump sum or annual payments. Financial experts say that a lump sum is best because it allows you to invest your money in assets that produce returns. The average return on investment of a lottery payout is 5.5 percent, according to Newsy.