The Financial Consequences of Winning The Lottery

When going gets tough, financial adversity is grave; one tends to buy lottery tickets to obliterate the financial constraints, to improve their overall lifestyle. But a new study in Vanderbilt Law School reveals people who have won from $50,000 to $150,000 were unable to solve their financial problem, the prize amount only delayed bankruptcy. They avoided diluting their debt with these windfall gains, neither invested in existing nor new assets or equities. People who won a small amount less than $10,000 filed for bankruptcy immediately after winning the lottery, while mid-level lottery winners filed for insolvency after three to five years of winning. Many used this money to buy pricey extravagance goods or invested in gambling or speculation. The money management of a large amount of money was wretched.

Research conducted by the University of Pittsburgh and Kentucky exhibits that financial aid by the government to pay off one’s unsecured loan fails to do the purpose. The money transfer to their account only defers their insolvency rather than prevent it. Everyone wants to win a jackpot, to eliminate the hardship in one strike; the average American spends $207 per year for buying lottery tickets. Residents of Massachusetts sped a whopping $735, of Rhode Island’s $514, that of New York $400 annually for buying lottery tickets according to the learning by LendEDU. Pragmatically chance of winning a lottery is very lean; you are more prone to be struck by lightning than winning a lottery. The probability of winning a $999 million jackpot is 1 in 88 quadrillions, the chance of being struck by lightning is 1 in 3,000.

But someone wins

In spite of these mammoth odds, some wins lottery. The first thing you do is to sign in the back of the lottery ticket to claim your ownership, because it is a bearer instrument whoever owns it, is considered to be the winner. Winning a lottery is certainly life-changing giving you a lot of euphoria, excitement which can fog your decision making. Take a few deep breathes to allow your excitement to subdue, hire a tax consultant, lawyer and a financial advisor to chalk out a prudent financial plan. This team of experts with their knowledge and skill helps you to make a smart, wise financial decision which will ensure your future. On their advice, you can decide if you want the prize money to be calm over a period of time or receive it in a lump sum, which will be significantly lower than the official award amount. The Financial Consequences of Winning the Lottery is immense, life-changing if you handle the amount judiciously and carefully.

Summing up

Another thing you should remember the amount you receive is after deducting tax, which varies from country to country, state to state. In America, the tax slab is 24%.In Europe, many countries tax it while some give an exemption. With a big amount in your account, your credit limit is increased considerably, and you tend to make purchases on credit cards rather than spending cash and overspend. Lottery wins can be a honeymoon stage of sudden wealth which should not degrade your humanity and modesty. To know more log in to

Published by Larry Fire

I write an eclectic pop culture blog called THE FIRE WIRE that features articles about books, comics, music, movies, television, gadgets, posters, toys & more!

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