Did you know?
According to Warren Ingram, a Personal Financial Advisor and Executive Director at Galileo Capital:
Only 55% of lotto winners felt happier after winning.
Lotto winners are twice as likely to file for bankruptcy as the general population.
70% of all lotto winners go broke.
80% of lotto winners give money to family, especially siblings.
44% of winners spent everything within five years.
20% go overseas for the first time.
75% of them buy a home.
25% buy a home in another country.
3% move their children into private schools.
- 33% of them gain weight.
Ingram told the story, widely reported in the media this past week, of an 85-year-old South African man who won R6 million in 2006.
Today he’s in abject poverty, one son is dead, and another is in jail for defrauding his parents.
What to do if you win (There’s a chance! It can happen!)
Ingram gives an example of another South African lotto winner of R7 million in 2015.
He went for therapy to help him work through the emotions of winning.
He still shops where he did before (places such as Pick n Pay and Mr Price) but would occasionally now also buy from Woolworths.
He became debt free and mostly kept his lifestyle the same.
Teach your kids about money early. Get them used to the idea that they have to work and be modest in their lifestyles. They are only custodians of the money that must go to the next generation.
- If you win big, invest 50% overseas, place 25% in local investments and use this to generate an income but don’t draw on the capital. Put 25% to your holiday and luxury fund. Remember this last part must fund all holidays and luxuries over your lifetime!
For more detail listen to the interview in the audio below.
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