Is Winning the Lottery Cursed?

Winning the lottery can be a huge, life-changing event. Imagine you'd just won few millions $$ from TOTO and not to forget the probability of an ordinary S$1 bet winning the jackpot  is 1 in 13,983,816 chance.  You must be “damn lucky “ in winning the TOTO but what happens to your life after receiving such big “windfall “.

Will your life change better or worse, according to a study, “Lottery winners, despite overwhelming odds, are a rare few to win millions on the turn of a dime. Many are simple people just struggling to get by. Having their financial concerns suddenly vanish must feel good. However, there’s a darker side to winning the lottery. Many winners end up worse off than they were before, broke, deeper in debt, divorced, or worst of all, dead. Like the old saying goes, more money, more problems.”

I am not so sure about Singapore’s case as no study been made on past lottery winner, but from below articles, it seems that there is the so-called “ Lottery Cursed “.

A Classic Psychology Study on Why Winning the Lottery Won’t Make You Happier (from thecut.com)

Nearly One-Third of U.S. Lottery Winners Declare Bankruptcy (from wolfstreet.com)

“Luck is a tricky thing. And when it comes to those lucky Americans who have won windfalls in the lotteries, it seems to be short-lived. Winners become losers at breakneck speed.

Studies show that lottery winners are more likely to declare bankruptcy within three to five years than the average American.

In fact, nearly one-third of lottery winners declare bankruptcy, and it doesn’t end there. It’s usually followed by depression, drug and alcohol abuse and estrangement from family and friends.”

image credit to dollarandsense.sg

Lottery Curse Victims: 7 People Who Won Big & Lost Bigger (from thebalanceeveryday.com)

“For some, winning the lottery was physically dangerous. Abraham Shakespeare was murdered in 2009 after winning a $30 million jackpot. The suspect, a woman who befriended Shakespeare after he won the lottery, shot him twice in the chest and then buried him under a slab of concrete.

For some, winning the lottery was emotionally dangerous. In 2006, Sandra Hayes won the Missouri lottery, splitting a $224 million prize. Her win was emotionally damaging. “I had to endure the greed and the need that people have, trying to get you to release your money to them. That caused a lot of emotional pain. These are people who you’ve loved deep down, and they’re turning into vampires trying to suck the life out of me.”

image credit to straitstimes.com

For some, winning the lottery was behaviorally dangerous. Ronnie Music Jr., for example, won $3 million in a Georgia lottery but found the temptation to make even more money too great and eventually invested part of his winnings in a crystal methamphetamine ring. He recently started serving a 21-year sentence for the crime.”

I think the curse is not just limited to “lottery “, but in any forms of sudden “windfall” for one to receive unexpectedly and have no idea of how to manage it in the first place.

I guess you may still remember on the below case which is closer to us …a sad story for her ignorance in financial planning.

$1m gone in one year: Widow of killed Changi Airport worker is now broke (from straitstimes.com)

To avoid such “curse”  if you really strike lottery or TOTO one will need to improve your knowledge of financial planning or F.Q ( Financial Quotient ).

As an investor, how will you spend (invest) your millions dollar if you are the only “damn lucky” one to become the next TOTO winner?

Cheers !!

Quote of The Day:

“Luck is great, but most of life is hard work.” Iain Duncan Smith