Now both of the Powerball record multi-million dollar jackpot winners have been named we wanted to know more about what happens next, what will they do, what will they spend their millions on, what lessons can they learn from previous winners?
Winning a lotto jackpot is a dream that lots of people have and to hit a multi-million jackpot on the lottery and immediately becoming financially secure sounds attractive. There is an excitement from playing a lottery – getting caught up in the frenzy, buying the ticket and then daydreaming about what we would do with a few million tucked away in the bank…trips, cars and homes…the list could and does go on and on …
A survey of lottery players reports starting a business, divorce, paying off debt or starting a charity are ways to spend the money but what do real lottery winners spend their money on? For real lottery winners it soon becomes a case of what not to buy!
The top three purchases for lottery winners are: a fancy new house, a new car and a luxury holiday. Another thing a lot of lottery winners do with their winnings is quit their job. Their millions have allowed them to obtain financial freedom from work and they could have whatever they want.
Being able to buy whatever you want means you have to consider the long term costs of owning it. Large homes need regular maintenance, insurance and taxes. All those expensive super cars have to be insured and serviced too. Oil changes on a Ferrari, for example, are about $500. These costs can add up and need to be taken into consideration. As a result of not thinking about their spending some lottery winners have gone broke after a few years – one man went from living in a mansion to squatting in a shed.
However, most lotto winners do make good choices and make their fortune work for them. Some wealthy people manage to live prudently, keeping their jobs and do well for themselves. They take a deep breath in, step back, look at their fortune and put it to work for them. Powerball winner in 2005, Brad Duke did just that when he won a $220 million and took home $85 million.
Invest and make more money
Brad did all the things you would expect but what made him different was his aspiration to grow his winnings. After establishing a family foundation, he gathered a team of financial planners and invested almost all of what he had won. He wanted to be and maintain billionaire status in 10 years. Brad focussed on growing his investment, managing the company he created and spending time with his family and friends.
People are people
Lottery winners are still the same they were before the big win and they still have the same hopes and dreams as they did before but the change is they can realize their ambitions. Most people already want a house and a car. Most people already take regular trips abroad and those who are fortunate enough to win the lottery still want the same but they just get super-sized variety.