What Do Lottery Winners Do with Their Money | theLotter
 
 
 

What Do Lottery Winners Do with Their Money?

What would you do if you won the lottery? Would you buy a new house, a new car, travel around the world, give money to charity? If you won a huge jackpot prize you would be able to afford all of those things and still have money left over.

lottery winners

When we hear stories of ordinary people who turn their lives around after coming into a big lottery fortune, we are encouraged to keep playing. We wonder “What do lottery winners do with their money” because we hope that one day, we will be in a similar situation and need to make such momentous decisions ourselves.

Let’s take a look at what some newly created millionaires have done with their lottery winnings and see if we can plan ahead for the day when our dreams will come true.

How Do Lottery Winners Spend Their Money?

Camelot, operators of the National Lottery in the UK, conducted a study in 2012 of the more than 3,000 millionaires it had created (a number that is now over 4,000) and found that the most popular use of lottery money was property investments. The second most popular use of the money was making investments to provide future income, while the third most popular use was to ensure financial security for children. Further down on the list were gifts to family and friends, cars, holidays, and paying off debts and mortgages.

lottery winners do with their money

Statistics aside, some of the most fascinating stories are those that tell us what lottery winners did with their money following their big jackpot wins.

John and Lisa Robinson of Tennessee, who shared the record $1.6 billion Powerball jackpot with two other winning ticket holders in January 2016, originally stated that they planned to remain in their one-story house, pay off their mortgage, and cover their daughter's student loans. Yet six months later it was revealed that they had purchased a 10-bedroom home with stunning rural views overlooking a private lake. The house apparently has a private home theatre and eight bathrooms.

Colin and Chris Weir, winners of Britain's biggest every lottery prize after they claimed a £161m EuroMillions jackpot in July 2011, purchased an £850,000 mansion in the town of Largs in North Ayrshire, Scotland. They made lavish improvements to the property including installing a luxury indoor swimming pool, spa pool, Jacuzzi, Roman-style ornamental statues, and a greenhouse.

what colin and chris weir did with their lottery money

Some four years later, the Weirs sold their Largs mansion and upgraded to an estate called Frognal House in Troon for more than £3million. Over the years, the Weirs have made generous contributions to the National Theatre of Scotland and the Scottish National Party.

Unusual Ways Winners Spend Their Jackpot Winnings

John and Linda Kutey won a $28.7 million share of a Mega Millions jackpot in 2011 and used some of their money to build a water spray park in honour of their parents.

Bob Erb from Canada won a $25 million Lotto Max jackpot in 2012 and donated a good proportion of his winnings, an estimated $8 million, to charitable causes. One of the causes he supported calls for the legalization of marijuana.

Jay Vargas from South Carolina become one of the youngest lottery winners ever in the United States when he scooped up a $35.3 million Powerball prize in May, 2008. He used his money to create a female wrestling television show called Wrestlicious TakeDown. That show shows that there is a link between the lottery and television. Still, the show went off the air after one season.

lottery winners spend their money

Do Lottery Winners Spend Their Winnings Wisely?

According to the Certified Financial Planner Board of Standards, nearly a third of lottery winners declare bankruptcy after their win. The National Endowment for Financial Education says that about 70 percent of those who come into a sudden windfall of cash, including lottery winners, go broke within a few years.

The tales of lottery winners who lost everything because of their wild spending habits and bad investments fascinate the public, yet they don’t cause people to stop playing the lottery.

Michael Carroll won £9,736,131 on the National Lottery in November 2002 when he was only 19 years old. The lottery win gave him celebrity status but after many run-ins with the law and spending his fortune on new homes, drugs, parties, and cars, he was reportedly almost broke five years after his big win. Michael's tale is quite the lottery winner horror story!

when you win the lottery

Ronnie Music Jr. from Georgia invested part of the $3 million he won in the lottery in 2015 to deal in drugs. Involved in a crystal meth ring, Music could face life in prison for his crimes.

Jack Whittacker Jr. was already rich when he won a $314.9 million Powerball jackpot in 2002. In the years following his win, thieves stole huge amounts of cash from his car; his house was robbed; a teenager was found dead of an overdose in his home; his granddaughter was found dead; he was sued by an Atlantic City casino for bounced checks; and his house burned down.

What Will You Do When You Win the Lottery?

Many lottery winners wisely consult with attorneys, accountants, and financial planners before spending one cent of their winnings. These winners typically make sound investments, donate generously to good charitable causes, and use their prize money to ensure the financial security of their families. In the UK, Camelot regularly sends financial advisors to lottery winners to help them deal with the risks and rewards involved in their winnings.

when you win the lottery

When the day comes and you become a big lottery winner, you will need to seriously consider your financial future. Hopefully learning what lottery winners do with their money, some of it good and some of it bad, will help you make wise decisions. Good luck playing the lottery and good luck spending your lottery winnings!