It’s become a fantasy of many hard-working Americans: play the lottery, win the big pot, and then live a new life with all the luxuries and ease one could possibly want and never have to worry about money again.
But research suggests overnight riches can actually cause more harm than good in the long run, with more than half of all multi-million dollar lottery winners returning to their pre-winning financial status – or worse.
Several big lottery winners were recently featured in The Tampa Tribune, each with a unique story, but many laced with despair, broken hearts, and shattered dreams. One woman lost everything – her kids, her husband, her friends, and now she awaits a hearing for tax fraud.
A San Francisco Chronicle article titled “Big lottery winners know a lot about what not to do” states:
“Research shows that a significant number of lottery winners lose their winnings within five years, said Stephen Goldbart, a psychologist and co- director of the Money, Meaning and Choices Institute in Kentfield, which advices people who come into financial
windfalls.
“We’ve seen people who had decent marriages who came into money and it destroyed the marriage. Bringing a huge amount of money into the scene is a life-changing event,” Goldbart said.
There is even a story about a hermit who drank himself to death just two years after winning $2.57 million (1.8 million pounds) in the lottery.
Compare these stories to ones about self-made millionaires and you will see there is a significant difference between the lives of people who get “windfall” money vs. money that is earned over longer periods of time.
Becoming a self-made millionaire is also a dream many Americans have, and the people who take action to create their fortunes through the old-fashioned ways of building wealth wind up far happier – and often far wealthier – than their overnight success brothers and sisters.
Why is this? Human psychology is a powerful force and plays an enormous role in human behavior. People who earn their fortunes over a long period of time have something a lottery winner never has: a sense of accomplishment. Human beings are wired to work, and when the rewards reflect the work we have done, something clicks in the brain that tells us we deserve what we’ve got because we did it.
This is excellent news for all of us entrepreneurs who are passionately pursuing our dreams using the latest systems, social networks, and cutting-edge business innovations. Not only will we appreciate the rewards we earn, but we will set an outstanding example for future business leaders and entrepreneurs who want to follow in our footsteps.
Indeed, our example of self-made wealth will be part of the legacy we leave to those who matter most to us.
Compare that to the overnight millionaires who have zero time to mentally adjust to their new-found wealth. Many of them say the whole experience is nothing less than overwhelming, and some winners even go so far as to get rid of the money as quickly as they can so they can go back to how they were before winning.
Not exactly a legacy to be proud of.
There is nothing wrong with playing the lottery and dreaming of a better life. But at the end of the day, your odds of enjoying and holding onto your wealth if you earn it yourself are far higher than if you pick the lucky numbers in Powerball.
I’m placing my money on myself.
How about you?
Great points Mary. I definitely agree that you are much better off putting your money on yourself. The unfortunate thing is that most people are just too lazy to want to put in the work that is required to bring success and wealth into their lives.
Cheers to all of us out there who refuse to quit and who choose instead to create our own Powerball 😉
-BT
As always Mary you break it down to the basics. Your are the Mistress of content. Thanks again for a super post. Oh, by the way, the Lottery was designed for those who did poorly in Math in school.
Mary Lou,
I totally agree with your points on this subject of becoming an instant millionaire. Most of them also are broke within a year! How crazy is that!
Mindset is so important in every aspect of life. This is another great point that moving forward towards your visions or goals sets your mind in a better place to handle success.
Thanks for sharing this interesting point,
Val 🙂
Mary Lou, great rundown, loved it. I know someone who the exact thing happened, he won the lottery and in about 3 years all of the money was gone he was in debt, worse off than he was before he won. Had to go back and find a job. I love our way better,so I can appreciate the money that I make and keep.
Lori
Thank you for sharing this story, Lori! It is another example of how fast money is NOT the solution!
Hi Val, Money is a topic all of us must come to grips with in our lives. The messages about money we receive as children create the mindset we develop about money as adults. Many people struggle with money because they do not know how to develop a mindset that allows them to succeed with it. Money is simply a tool that gets things done. Once we remove the emotion from money, life seems to be more peaceful.
Hi Brian, In this country, comfort is everywhere. Most people earn enough money to “get by” and be comfortable. While many may talk about wanting more money, the fact is they aren’t willing to do the hard work it takes to create true financial freedom. I like the idea of creating my own Powerball! Like you, my bet is on myself! 🙂
Hi Nelson, “The Mistress of Content.” I like the sound of that! I also love your astute observation about all the bad math students out there. 🙂
In other words..’There’s no such thing as a free lunch!’ .. work for it, earn it, enjoy it. Working hard to become a marathon runner was painful..but if someone had just said ‘here’s your London Marathon medal’ without that journey of training, injuries, tears, sweat..well, it wouldn’t have given me the same sense of pride and achievement. Now I’m wondering just how much can I achieve if I put in a bit more effort … I’m hoping the answer is the New York Marathon in November!! 🙂 Thanks for the post Mary Lou, great words!
Thank you, Joanna, for a terrific comparison between entrepreneurs and marathon runners! I have a huge amount of respect for people like you who CHOOSE to run 26.2 miles! Bravo to your spirit of determination and achievement! 🙂
Mary Lou, this is a very pertinent observation that when we have invested our time, money, passion into something we value it. It’s like when my kids were young and wanted bicycles. I told them I would pay half on a bike when they had earned the other half of the money. Why? So that they sacrificed and worked and saved and then when they finally got their bike, they took good care of it. Thanks for your insight.
Excellent blog Mary Lou! When it comes to wealth, it is unfortunate that most people seem to be looking for that “silver bullet” instead of working (toward the goal of building wealth) for themselves. I know from personal experience that when you personally earn something, you tend to value it more. And, I would hope when you have acquired the money you’ve worked hard to earn, that you will know how best to be responsible with it to ensure it will last throughout yours, and perhaps even, your family’s lifetime. Thanks for sharing your thoughts 😉
Hi Mary Lou – great post.
Bottom line, you do the work you get the pay!
Some people are just too darn lazy to get that.
I read somewhere if you give a poor mindset riches
it wont take long for them to be poor again.
You proved it in the stories in the post.
Thanks again,
Sharon
Hi Mary,
that is a great insight into human psychology with regard to money and riches. We should be grateful for not winning the lottery !
Take care
Oliver
Hey Mary,
This is a killer post. It’s totally true about what happens with people that win the lottery.
Something to think about here for all the readers. You really don’t want to be a “Self Made Million”. Why?
Becasue if you accomplished everything on your own….you havent accomplished much. 🙂
Great insight Mary Lou.
As you said, we all seem to have to desire to strike it rich. I think it has to do with the way we were raised in our society and the pursuit of the American dream. The old “work hard” thing has merit but sadly some people have jobs that require very hard work for very little pay. So they but a lottery ticket in hopes of changing their life. I’m aware of the information you shared on this and I agree with your thoughts. I hardly every buy a lottery ticket. I know that when I hit the “mother load” from efforts it will be so much sweeter.
I have heard those stories too! The journey is what makes the difference in being ready for wealth. If one’s life is lived “wishing” and “hoping” external forces will automatically gives what one hopes for – then I don’t think a life has been lived and one could end up waiting forever while opportunities pass by…. an earned wealth is better and lasting.
And thank you for visiting my blog too!
Mary Lou,
Great post. I just wanted to emphasize something that differentiates the instant winners who get rich overnight from those self-made millionaires who went through a life process to get there. The overnight winner did not learn how to do it. That person did not go through the trials and overcoming problems, the setbacks, the downturns, the failures to be overturned. They did not develop a method or system for creating success. The self-made millionaires developed a system that once created could be replicated over and over.
Hi Mary Lou, this is so true about people who make their money overnight. I also think that their mindset has a lot to do with it. People who have little money usually don’t have the mindset set up for it. Self worth issues, or they haven’t received the financial IQ to sustain them in wealth. People who grow up with money have a mindset that says money is easy to make, I have plenty I will use it and have an abundance mindset with money which creates more money flowing in and out of their life. Overnight millionaires just don’t have the mindset given to them as well overnight and their money/ poverty mindset is still with them. Hence the money just flows out.
Belinda
Mary Lou,
You have a very good post here. I believe wholeheartedly that it is better to earn it than win it. There is just something about the journey along the way that makes you appreciate it more.
Bill
Thanks, Mary Lou. You make me feel so good about never having won anything!
Seriously… I really appreciate the point you make here. We always get far more value from the fruits of our own labor than from the give-aways or windfall gains that we always THINK would bring us happiness and fulfillment.
Great lesson!
Reinforcing advice Mary Lou! I have read often of the lottery winners and their problems. And I see the wisdom in earning ourselves, because the very process of developing the skillset to earn such income transforms us in to new people, more equipped to manage the responsibility that comes, and the understanding and life structure of helping others.
Hey Mary Lou,
I’m with you! My money is on me too! Never really had too much time for lottery, I know the odds too well! Think I heard that you have more chance of being struck by lightning twice than winning!
I don’t think many people actually ask themselves if they could cope with winning a fortune. Those of us who are working towards it already know how we would cope because we know WHY we are doing our business!
Great, thought provoking article.
Sue
Mary Lou
I really appropriate this post, thanks for sharing.
I know of no other industry other than Network Marketing that requires personal development. We prepare ourselves emotional, mentally, spiritually to handle large sums of money. Most people that win the lottery don’t have a clue on who they are and never had money management training. We are truly blessed to be network marketers, what we learn through personal development is key to our happiness and success!
Great post!
For the X-Factor is simple: “Blood, Sweat, & Tears”
When people have these three things invested they have a greater sense of appreciation. In term of financial security, those that actually earned the money by working will handle their money much wiser because they know first hand all that went into making it.
Thank you for sharing your thoughts, Dewane! When we have those three things invested, we appreciate our rewards so much more!
I remember learning early on in my NWM career that this is a business of Personal Development wrapped in a compensation plan. You are so right, Debby, about the growth we experience as we build our business. I appreciate your comments!
Thank you, Sue! You are a smart “gambler” placing the bets on yourself! 🙂
It’s almost as if the whole lottery system wants people to fail, like that expectation is built in to it. I wonder if there are any lottery winners who have managed their winnings well? That would be an interesting story to pair with this one, see what the differences are between them and those who lost everything.
Hi David, Windfalls almost always blow people down and make it hard to get back up again. Better to build our fortunes the old fashioned way: one day at a time. 🙂
Thank you, Bill! 🙂
Mindset is central to everything, isn’t it? I agree with you: the patterns of abundance begin early in our lives and we play out our own individual money drama throughout our lives. Thank you for sharing your thoughts on this subject! 🙂