Fighting over money can bring out the worst in some people, whether they are distant acquaintances or your closest relations. When there is a large amount of money up for grabs, things can get very heated.
A recent lottery winner, who hit it big and got a whopping 5.6 million. He turned to the AITA subreddit to find out if he was a jerk because he didn’t give his family any of the money.
He decided to do the smart thing. His social circle was a big deal. The story is below. Let us know who you are on. If you have ever won the lottery, let us know in the comments if it changed you, because research shows that people stay the same even after getting millions.
Sam Dogen is the author of ‘Buy This, Not That: How to Spend Your Way to Wealth and Freedom’. The founder of Financial Samurai talked about winning the lottery and how to protect our wealth. He said that it’s inevitable that family members fight over the winnings “because everybody has either a money problem or a money desire. If the winner doesn’t magnanimously share their winnings with family members and friends, they will be seen as selfish and greedy.”
Sam believes that keeping the fact that you won the lottery a secret is the best course of action. “I’m all about Stealth Wealth. If you win the lottery, do your best to keep it a secret. Furthermore, if you win the lottery at work or in your investments, never brag about how much you make either. Instead, try to blend in as much as possible. You can always then be more generous with your money if you wish, without expectations.”
If we won the lottery, how our lives would change is something most of us have thought about.
One man explained what he did with his winnings and how his family reacted to his decisions.
Sam told how lottery winners should deal with their wealth in order to preserve it. “The first thing to do is sit on your winnings for at least three months and live your life as usual. During this time, read as much financial literature online from sources who have no interest in your money. For example, you can come to Financial Samurai to learn about a proper net worth asset allocation to help ensure your wealth lasts longer,” he suggested.
“Once you get educated and have formulated a good idea of what you want to do, you can then seek professional advice from a fee-based financial advisor. Or, you can implement your capital allocation yourself. Take your time! There is no rush. You just won the lottery!”
According to Psychology Today, lottery winners tend to stay the same. They generally consume a lot more. The myth that winners become completely different is just a myth.
A lot of winners fall into the same trap that the Redditor was concerned about. Within a few years, all of the winnings will be spent. The author of the post explained how he decided to take care of his and his wife’s future by investing the money and paying off their debt.
He wouldn’t be able to give his family any of the money. When they heard that they wouldn’t be getting a cent, they didn’t take it well. They expected that someone would be able to pay off their debts without them having to lift a finger. Imagine all the luxurious family trips they would take.
The family found out what the man did with the money. They told him to not speak to them again. You are branded as someone who is no longer a part of the family if you don’t spend all of your money on someone. Is it entitled much? You bet.
Robert Pagliarini, a financial adviser, told Business Insider that the first thing a lottery winner should do is take a deep breath and then hire an attorney, a tax specialist, and a financial adviser.
“This financial dream team can help you make smart financial decisions and help you plan for the future,” the expert said.
Many lottery winners experience the so-called “honeymoon stage of sudden wealth”, but they should not allow the prize money to dictate how their lives change. You should plan out how you want your life to look. There is a clear strategy on how you will use the money. You need to be in control of the pot of gold, not the other way around. The person asked the internet for advice.
The people were very supportive of the person. Here is what they had to say about the family drama.
Some internet users asked for more information and the person who answered was open to sharing more about himself.
There was nothing wrong with doing the smart thing with your winnings.