70% Of Lottery Winners Go Bankrupt: 15 Things They Waste Money On

Winning the lottery sounds like the ultimate dream, doesn't it? Imagine suddenly having more money than you ever thought possible. With that kind of cash, you could buy anything you want, help your family, travel the world, and live without worrying about bills. But here's the catch: not everyone knows how to handle that sudden wealth. Many lottery winners end up spending their fortunes on things that might seem exciting at first but often turn out to be huge wastes of money.

1. Extravagant Homes

One of the first purchases many lottery winners make is a lavish, oversized home. While it’s natural to desire a beautiful and spacious place to live, these properties come with high maintenance costs, hefty property taxes, and can be difficult to resell at their purchased value. Winners often buy several properties, not realizing the ongoing expenses and responsibilities they entail, leading to significant financial drain.

2. Luxury Cars

Another common expenditure among lottery winners is luxury cars. The thrill of owning high-end, expensive vehicles is undeniable, but these depreciate rapidly and come with high insurance premiums, maintenance, and repair costs. Additionally, some winners indulge in collecting cars without considering the practicality of such an expensive hobby.

3. Impulsive Investments

With a sudden influx of cash, lottery winners feel compelled to invest in business ventures or stocks without proper research or financial advice. These impulsive investments often result in substantial losses because they lack the expertise to discern good opportunities from bad ones. Moreover, trusting the wrong advisors or friends with investment decisions can further exacerbate financial losses.

4. Excessive Gifts and Loans

Generosity can sometimes lead to financial downfall for lottery winners. They may feel pressured to give extravagant gifts to family and friends or loan money to those who ask. Unfortunately, these acts of kindness can quickly spiral out of control, as demands increase and the winner’s inability to say no depletes their fortune faster than anticipated.

5. High-Stakes Gambling

Ironically, some lottery winners continue to gamble, mistakenly believing their luck will persist. They might frequent casinos or invest in high-stakes gambling ventures, leading to substantial losses. This behavior not only risks their winnings but can also lead to addiction, further endangering their financial stability and personal relationships.

6. Failing To Plan for Taxes

Many lottery winners overlook the tax implications of their windfall. They fail to set aside money for state and federal taxes, leading to a rude awakening when tax season arrives. Without proper financial planning, winners can find themselves in debt to the IRS, facing penalties and interest on unpaid taxes.

7. Over-the-Top Vacations

While enjoying some well-deserved rest and relaxation sounds like a perfect way to celebrate a lottery win, some winners take it to the extreme. They book the most expensive hotels, private jets, and exclusive resorts, quickly burning through millions. These extravagant vacations can become a habit, making it hard to adjust to a more sustainable lifestyle later.

8. Opulent Parties and Events

Many lottery winners feel compelled to celebrate their windfall by throwing opulent parties and events. These extravagant celebrations can cost millions, with high-profile entertainment, luxurious venues, and lavish catering. While it’s natural to want to share your happiness with friends and family, these events often become more about showcasing wealth than celebrating good fortune, leading to unnecessary and excessive spending.

9. Designer Fashion and Jewelry

Suddenly having access to a large sum of money can spark a desire in lottery winners to overhaul their wardrobe with designer fashion and expensive jewelry. While indulging in a few luxury items might seem harmless, an obsession with high-end brands can quickly deplete funds. Furthermore, the value of these items depreciates over time, and they can become a target for theft, adding to the winner’s financial and emotional strain.

10. Financial Support To Extended Family and Friends

Beyond immediate family and close friends, lottery winners may find distant relatives and acquaintances reaching out for financial support. The pressure to help everyone can lead to significant financial loss, as it’s challenging to draw the line on who to help and how much to give. This generosity, while well-intentioned, can become a bottomless pit, with the winner's wealth slowly being chipped away by endless requests for assistance.

11. Membership Clubs and Exclusive Groups

With wealth comes opportunities to join exclusive membership clubs and groups that promise networking and prestige. However, the membership fees, annual dues, and event costs associated with these clubs can be astronomical. Lottery winners might find themselves paying for prestige and exclusivity that offers little in return, diverting funds from more fruitful investments or savings.

12. Fad Investments and Startups

The allure of becoming an entrepreneur or investor can be strong for lottery winners, leading them to pour money into fad investments, startups, or business ideas without due diligence. While some may strike gold, the majority of these ventures fail, resulting in substantial financial losses. The lack of experience in business or investing, combined with the eagerness to multiply their winnings, often sets lottery winners up for disappointment.

13. Unnecessary Upgrades and Tech Gadgets

In a world driven by technology, lottery winners may be tempted to buy the latest gadgets, home automation systems, and luxury vehicles with all the upgrades. These purchases, often more about status than necessity, can quickly become outdated and lose value. The continuous cycle of upgrading to the latest model drains finances and adds little to the winner's quality of life in the long run.

14. Charitable Donations Without Strategy

Philanthropy is commendable, but without a strategic approach, lottery winners can find themselves giving away more than they can afford. Making large, impulsive donations to multiple causes without a plan can deplete a winner's wealth. It’s important for lottery winners to consider their long-term financial goals and seek professional advice to create a charitable giving strategy that aligns with their values and financial capacity.

15. Personal Entourage and Staff

Hiring a personal entourage, including assistants, chefs, bodyguards, and housekeepers, is a luxury many lottery winners indulge in. While having staff can certainly make life more comfortable, the costs can quickly become unsustainable. Lottery winners often underestimate the long-term financial commitment, including salaries, benefits, and insurance for a team of employees.

Does “Male-Privilege” Exist? Here Are 10 Reasons Perhaps Not

The men and women of Reddit share what they believe are the worst things about being a man.

• Does “Male-Privilege” Exist? Here Are 10 Reasons Perhaps Not

10 Red Flags That Say “Don't Date Me, Run!”

The Reddit community compiled a list of red flags in both men and women that should be avoided.

• 10 Red Flags That Say “Don't Date Me, Run!”

“Barbie Was Right” 10 ‘Girly' Habits Men Should Pick Up As Well

There are plenty of things, like skincare and moisturizing, that women already do. But why can't men do them too? The Reddit community shared some things they believe men should start doing that women already do.

• “Barbie Was Right” 10 ‘Girly' Habits Men Should Pick Up As Well

Relationship Buzzkills: 10 Things Men Can't Stand Hearing from Women

Some phrases are overused. Some are just plain annoying. The men of Reddit have come together to share what phrases they hate hearing from women the most.

• Relationship Buzzkills: 10 Things Men Can't Stand Hearing from Women

10 Foods You Should Never Order On A Date

Going out on a date can be a nerve-wracking experience, and what you choose to order can play a significant role in how the night goes. One Reddit thread asked the question, “What's the worst food to order on a date?” The thread received thousands of responses, and here are ten of the most popular answers.

• 10 Foods You Should Never Order On A Date