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Posted by on Aug 9, 2010 in Financial Intelligence | 1 comment

Why Do Lottery Winners Go Bankrupt?

Why Do Lottery Winners Go Bankrupt?

I just read this news this morning on The Star.

Monday August 9, 2010

Man torches self after ‘burning’ lottery win

Compiled by MAZWIN NIK ANIS, NG SI HOOI, and A. RAMAN

A VEGETABLE farmer who lived a life of luxury after winning almost RM1mil in a lottery five years ago torched himself when his “pot of gold” became empty.

The 63-year-old from Serian, Sarawak, known only as Khoo, was reported to have dug a “grave” at the back of his house before splashing petrol on his body and lighting it, reported Berita Minggu.

The man had won more than RM750,000 five years ago and then reportedly spent up to RM1,800 on a single bet over the years, hoping to strike it big again, the weekly said.

Serian OCPD Deputy Supt Jamali Umi said the police have classified the case as sudden death.

He said the victim’s nephew had found the man dead in the hole.

A relative, who declined to be named, said Khoo, who never married, had stopped cultivating his farm upon winning the lottery and had spent the money on a new house and several vacations.

But with no new winnings, the barrel soon became empty.

(Article Source: TheStar.com.my)

When I read this unfortunate incident, I immediately recall of one of the movies that I’ve watched recently called Happy Go Lucky.

(Picture Source: Singapore-Movie.com)

Happy Go Lucky is a typical Singaporean movie about Fu Xin (Fann Wong), a foot masseur who is regarded by her father as a jinx to the family as she was born at a superstitious hour when he had lost big money in gambling. Her father continues to believe that her daughter was the constant losses at gambling and treated her unfairly. Yet, Fu Xin continues to be patient and takes care of his father very well.

One day, a stroke of luck befalls Fu Xin and this changes the fate of her family. Fu Xin unexpectedly helps her father to win a hefy sum of money through lottery.

As the plot continues, her father started visiting night clubs and became more addictive in gambling until he lost his business and was in huge debts. He soon found himself stranded along the streets of Cambodia, in a failed attempt to recoup their losses at the gambling tables. Fortunately, Fu Xin came to their rescue and helped her dad to turn over a new leaf.

The 3 Major Lessons Learnt from Happy Go Lucky:

1) You Can’t Buy Happiness with Money!
While most people believe that they will be happier when they have more money, that’s not the real case. The formula is simple.. If a miserable man suddenly gain a vast amount of wealth, he is just another rich miserable man. Happiness comes from within, true friends and families, not from the sudden wealth that you gain or fake friends and even fake families that you will suddenly have.

2) Lottery Winners Generally Goes Bankrupt

Generally, most lottery winners are bankrupt or close to bankruptcy within 5 years upon winning the big prize. Why is that so? Because they lack of the mindset and skill sets to manage a huge amount of wealth. If you have a mindset and skill sets of earning and managing $5,000 per month, you will be managing only up to that amount unless you start changing your mindset and your skill sets. Think about it, Tiger Woods did not become the world champion over night.. It was through years of sharpening his mental strength and his golf skills. It’s the same when it comes to money!

3) The Millionaire Mindset

You do not need money to make money. What you really need are the mindsets and skill sets of millionaires or billionaires. When Donald Trump went bankrupt overnight and his wife left him, he wasn’t worried at all. Because he knew that he had not the millionaire mindset but the billionaire mindset. That’s why within a few years, Donald Trump got out of his negative net worth, did not only become a millionaire but he was a billionaire again! In fact, his net worth was even higher than before.

So, if you want to massively change the results in your financial life today, you have to adopt a totally different set of actions to massively increase your wealth intelligence. When you increase your wealth intelligence, you start to think differently. And of course when you think differently, you have a different mindset.. The Million Dollar Mindset!

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1 Comment

  1. Great article about ‘real asset’ investing here. Thanks, we’ve shared this on for you.

    We are great believers in real asset investment, especially in times of uncertainty and currency debasement. It is easier to understand and value a bar of gold, than a more complex financial product that your financial adviser might have problems explaining to you.

    When currencies are losing their purchasing power and inflation is a concern, investments in precious metals, fine wine, art, and other such alternatives can be a way of preserving wealth and earning what might be deemed safer returns.

    Also, with things like gold bullion and the best Bordeaux wine, their value can never fall to zero, unlike bank shares (we hope you didn’t own Lehman stock).

    Regards and good investing!
    MyCommodity.com

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