How Do Lottery Winners Spend Their Money?

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2022-04-19

The dream to hit a massive win is usually alive in most lottery players. While the goal might be somewhat far-fetched, it often manifests when least expected. As a result, any player should always have a plan on how to spend a lottery win, just in case Lady Luck comes calling.

How Do Lottery Winners Spend Their Money?

Over the years, lotteries have made thousands of lottery players millionaires. Some winners have also been fortunate to win the lottery multiple times. Stephan Mendel is one of the luckiest players in the history of lottery games, having won an incredible 14 times.

Now that it is evident that winning a lottery such as Mega Millions is possible, players also need to learn a thing or two about how past winners put their fortunes to use. Some players made the right decisions while others made dreadful ones. Here is an overview of where most lottery winners spend their money.

Property

Property is undoubtedly the most popular area for lottery winners. For starters, most winners opted to invest in luxury homes first. With the basics already met, the second most popular use of lottery money was real estate investments that provide future income.

In a study on lottery winners, it was also apparent that some of this money goes into the real estate industry when winners pay off mortgages for their friends and family.

Furthermore, lottery players also go to great lengths to keep their homes in mint condition. Not only do they invest in expensive renovations, but they also hire gardeners and housekeepers to take care of their investments.

Investments

After buying property, lottery winners start thinking about investments almost immediately. They begin scouting for opportunities that will provide them with an income. The choice of investment is usually a personal decision.

Most winners go different routes when it comes to investments. Some winners choose to invest in stocks, cryptocurrencies, or real estate. While some winners have made fortunes in financial markets, real estate is often viewed as a safer and more secure path.

Lottery winners who invest in real estate rarely go wrong, considering that the industry is booming in almost every part of the world.

Luxuries

Past winners have confirmed that the possibilities of spending money are endless. Some luxury spending includes everything from designer clothes, mansions, luxury cars, racehorses, and airplanes to local racetracks.

Jim Hayes is one winner who opted to invest in luxuries after winning a $2.5 million lottery in 2002. From his record-breaking win, Hayes bought a $1.3 million horse farm and went ahead to renovate old buildings into hospitable houses.

Charitable Causes

Some lottery winners are usually not after possessions and investments. In most cases, only those keen to make wise investment decisions can redirect some of their money to good causes and charities. In light of that, here are some lottery winners who won and gave back.

  • Bob Erb: Won $25 million from the Lotto Max Jackpot and donated close to $8 to charitable causes
  • László Andraschek: Won $1.7 million (636 Hungarian Forint), pledging most of his winnings to his foundation that supported alcoholics and abused women
  • Tom Christ: Won $40 million Lotto Max and opted to donate the entire amount to charity

Final Thoughts

According to studies conducted by the Certified Financial Planner Board of Standards, it is clear that almost a third of large-sum lottery winners end up bankrupt within a few years. Stories of lottery winners who ended up poor because of unwise financial decisions will always be intriguing.

Lottery players are advised to consider their financial future seriously if the day comes. While learning what lottery winners do with their money can be a good way of preparing themselves, hiring legal and financial consultants is always advisable.

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