{"id":18622,"date":"2014-10-04T08:29:45","date_gmt":"2014-10-04T12:29:45","guid":{"rendered":"http:\/\/canadianbudgetbinder.com\/?p=18622"},"modified":"2025-01-30T07:37:28","modified_gmt":"2025-01-30T07:37:28","slug":"lottery-winning-bankrupt","status":"publish","type":"post","link":"https:\/\/digitalskyweb.co\/canadianbudgetbinder.com\/2014\/10\/04\/lottery-winning-bankrupt\/","title":{"rendered":"If you won the lottery would you go bankrupt? : The Saturday Weekend Review #91"},"content":{"rendered":"

THE MILLIONAIRE BUDGET<\/span><\/h2>\n

I read an online article about what not to do when you win the lottery which made me wonder why people go bankrupt when money falls in their lap.<\/em><\/p>\n

I know what you are thinking…how does someone who won millions of dollars blow through it all so they go bankrupt?
\nEasy… they don’t manage their money properly.<\/p>\n

Whether you are a millionaire or not you still have to budget <\/a>your money. I know some of you might laugh at that but money is money and there is no special budget for rich people either. It’s simple math but people tend to complicate money to the point where they don’t know where all of their money went until it’s too late.<\/p>\n

Lottery tickets are a waste of money<\/span><\/h2>\n

Some people may say that spending money on lottery tickets is like throwing money out the window and in one sense I agree but in another you can’t win if you don’t play.<\/p>\n

My wife and I play the lottery and buy one line with encore of Lotto Max every week. No, there have been no heart-stopping moments checking our lottery tickets but it’s our way of splurging on something so we are willing to take the money risk.<\/p>\n

It may sound odd that a frugal guy like me would spend money playing the lottery but just because I’m frugal doesn’t mean I don’t like to live a little and enjoy my life. It’s about spending less than you earn and enjoying life in moderation. The most we’ve ever won was $22 and that was just recently. I know, don’t spend it all in one place but we did manage to use the winnings to cover the costs of future tickets.<\/p>\n

How do you win the lottery in Canada?<\/strong><\/p>\n

If I had the answer I’d likely be running a blog called “Secrets to winning the lottery” but that’s not the case. Plenty of people every day become rich or win enough to allow them a stress free financial life all around Canada.<\/p>\n

Winning the lottery doesn’t mean just buying lotto max lottery or lotto 649 etc. as you can win cash from other draws such as the Dream Home Lottery, Heart and Stroke Lottery or the Princess Margaret Lottery just to name a few in Ontario. You might even get lucky winning with an instant scratch ticket which can set you up nicely if you win the top prize.<\/p>\n

Just a couple of weeks ago a 30-year-old girl Deanna Bergeron from Orilla, Ontario won a $50 million dollar Lotto Max lottery draw<\/a>. I think it’s great that a young person won but most people seem to think that all people who win eventually will go broke.<\/p>\n

We know someone who did win millions in a Lotto Max draw and has invested his money in a business and real estate. He is making money with his money rather than blowing it all on vacations and toys although he has splurged of course.<\/p>\n

I do have to wonder why people go bankrupt when they have all the money they will ever need after winning millions in a lottery. Most winners say winning the lottery won’t change your life, but it will if you let it.<\/p>\n

I don’t know many people who don’t quit their jobs and buy a new home or even go on vacations with their winnings and that is all life changing. It gets even fancier when the money you spend is on the best of the best and that lifestyle becomes the norm.<\/p>\n

I’m sure you’ve all closed your eyes at some point to imagine picking up that big cheque at the OLG office and then dreamt about how your life would change. We’ve all done it because it’s the only way many of us believe we will achieve financial freedom. Yes, by winning the lottery. The odds are slim so dreaming is the only way to go.<\/p>\n

You don’t have to rely on winning the lottery to live a financially free life either. Personally I can’t tell you exactly what would go down if I won millions of dollars but if I did win some serious money you can bet I’d invest it wisely. I’d be ashamed to say I went bankrupt after having millions of dollars in my hands.<\/p>\n

In one door out the other<\/span><\/h2>\n

It makes no sense how people who win the lottery manage to screw it up but it happens. Why? It happens because we get used to a lifestyle and it becomes a normal place where bigger is better and having the best of the best will only do.<\/p>\n

People who win the lottery or even movie stars who are worth millions of dollars think that the money they have comes as an endless supply. Just look at Mike Sorrentino who played “The Situation” in the popular series Jersey Shore who was arrested for tax fraud and failing to file taxes in 2011 on an income of $1.95 million dollars last week.<\/p>\n

Maybe the situation will sort itself (no pun intended, OK maybe a bit) out but why is it that someone who earned millions can’t pay his taxes? Likely because he has no money or he’s greedy and doesn’t want to pay up like the rest of society. The real answer perhaps is that he got too used to the “rich guy” lifestyle. It’s hard to live up to something you’ve started especially when the money is not rolling in as fast or you invest it all with nothing to back your\u00a0 ventures.<\/p>\n

It’s certainly clear how difficult it is for some people to make their lottery winnings or millions of dollars last without going broke if they aren’t smart with their spending habits.<\/p>\n

Do you think you’d go bankrupt if you won the lottery or had millions of dollars?
\n<\/strong><\/p>\n

Canadian Budget Binder blog news<\/span><\/h2>\n

Exciting news! It was an honour to be featured by Rob Carrick in the Globe and Mail online Carrick on Money<\/a> this weekend. Rob shared Dan’s guest post from Our Big Fat Wallet who shared How going vegan affected their budget. Thanks Rob for sharing and a big thanks to Dan for putting together an informative article with a personal flare which I really enjoy.<\/p>\n

In other news the blog has kept busy and more good news is that Katrina is back writing for us after taking the summer jetting around Canada for work and spending time with her family. Be on the lookout for her upcoming blog post.<\/p>\n

CBB blog posts this week<\/span><\/h2>\n

Just in case you\u2019ve missed any of my blog posts this week I will link to them all below.<\/p>\n

If you have a question that you would like to ask Mr.CBB fill out the contact Mr.CBB form on the Home Page and send in your questions. Mr.CBB will look in his mailbag weekly and pick a question to answer on the blog.<\/p>\n