Why Do Lottery Winners Go Broke? – Gillian Giorgio
The story is so common. The lottery winner with Millions of dollars somehow makes it back to being broke within a few years. It actually happened to someone I went to highschool with. Why does this Lottery Curse affect so many people? It is because in the United States, we have virtually no helpful information about how to make money, keep money or grow money.
People who save money are often looked at as boring, not exciting, frugal and possibly even cheap; I have been called all of those names, but growing your savings is truly one of the best feelings in life!! If I were to bring you to my office, like Uncle G says, the first thing we want to do is help you “get your money right!”
It takes one step at a time, but the things people need to know:
- Just because you make money, does not mean you have to spend it all. Have you ever heard the term my money “burns a hole in my pocket? I used to be that way. Every time I got my paycheck, I was living large and acting like there was no end to the income….I bought everything I could until the money ran out and I had nothing for days and days and lived on credit cards. When I started with World Financial Group over 10 years ago, someone finally educated me about how I should think differently about money and how to keep more of it.
- Credit Cards are not your emergency fund. Well, some people use them as such. When you run out of money, it’s time to not spend anymore until you get paid again. Living within my means is one of the best lessons my mother tried to teach me when I was young. I never listened and racked up $45,000 worth of credit card debt just before the economy crashed in 2008/09. Thankfully, I was able to clear it all up in 3 years with correct coaching and definitely earning more money. Keep your credit card in your wallet if you can avoid it.
- Compound Interest: It will be your greatest ally if you use it correctly, but it will be your worst enemy if you abuse it by way of credit cards. At World Financial Group, we teach the entrepreneurs and average people how to make better more educated choices when it comes to compound interest.
- Earn more money! Put in work where you are able to earn more. If that is not possible, take on a side job or start a business that you will make money doing. We no longer live in an age where people only do one thing. Most everyone has something they do on the side to make additional income. The fact of the matter is, in this day and age, if you don’t have some type of ‘side hustle,’ you may get left behind.
- Separate your money into buckets, envelopes, etc. Just keep them separate. I often do workshops with kids through our Kid Entrepreneur program BOOM or in the classrooms at school. I teach them how to separate their money into 5 buckets (charity/tithe, wealth, education, short term savings for a trip, shoes, clothes, music, etc and last is just Blow It on Whatever You Want! If you can separate your money into different places, you will be better prepared for true emergencies and able to recover more quickly.
These are just some basics and baby steps to help people do a little better each day. I am so grateful to have been associated with people who have helped me improve my financial situation and get on track for my dreams. It has been a wonderful way to learn and teach my kids how to have a healthy relationship with money.
Written by Gillian Giorgio
Contact Gillian at firstname.lastname@example.org