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Excellent Money Advice

Topic closed. 23 replies. Last post 1 year ago by savagegoose.

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Teddi's avatar - Lottery-008.jpg

United States
Member #142499
May 13, 2013
1182 Posts
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Posted: September 26, 2015, 10:58 pm - IP Logged

"That's just an idiot."

You don't have to be an idiot to to do things that are idiotic. Not to say the guy might not be a complete moron who still doesn't get it, but thinking you're immune just because you think you're smart (and might be right) is one of the things that can get you in trouble. The more you think it can't happen to you, the more at risk you are. On top of that, few people even bother to do the math.

It may be nice to fantasize about a $20 million private jet, a $10 million yacht, and a $10 million piece of beachfront property in the Caribbean, but with the possible exception of Gloria McKenzie no lottery winner has ever taken home enough money to actually afford those things unless they're very frugal about everything else. Even then, they're going to have to sell off the toys and cut expenses before very long. Everybody has to live within his means, and it takes a hell of a lot of money for annual expenses of $3 to $5 million to be within your means, unless you're already fairly old. As big as it is, you probably can't do it with the take home from tonight's $267 million PB jackpot.

$50  million is a hell of a lot of money, but I think that most people still overestimate how much it is.  It's enough to lead an extremely comfortable lifestyle, but it's still a limited resource and it would be easy to burn through it by being too extravagant. I disagree with some of the details, but here's a decent article about what you can really afford with a given amount of money.

How Does Your Life Change As You Go From Millionaire, To Hundred Millionaire, To Billionaire And Beyond??? | Celebrity Net Worth

My grandfather was a multi-millionaire. Self made man. Never went to college, not sure if he even finished high school. Came from a dirt poor family, saved money then started a small business and grew it into a mini empire. Right around the time he was considering retirement, he met a conman. He used to say that the man who could con him hadn't yet been born. He was wrong. By the time the dust settled he was wiped out. 

So you see, I have no illusions that I can't be swindled. But I think I won't be capable of putting myself in a position where I could lose everything simply because I'm so afraid of losing everything. I don't have any certainty that a riches to rags story couldn't happen to me and I think it's that fear that'll keep me financial safe. 

But even if I do end up losing all my money, I can guarantee that it won't be because I'm personally taking care of 70 people

I shouldn't do the name calling thing, but when it comes to Walker, I don't think he made a single financial decision that wasn't a total disaster. Hence the idiot comment.

I might wake up early and go running.  I might also wake up and win the lottery.

The odds are about the same.

    Teddi's avatar - Lottery-008.jpg

    United States
    Member #142499
    May 13, 2013
    1182 Posts
    Offline
    Posted: September 26, 2015, 11:14 pm - IP Logged

    "That's just an idiot."

    You don't have to be an idiot to to do things that are idiotic. Not to say the guy might not be a complete moron who still doesn't get it, but thinking you're immune just because you think you're smart (and might be right) is one of the things that can get you in trouble. The more you think it can't happen to you, the more at risk you are. On top of that, few people even bother to do the math.

    It may be nice to fantasize about a $20 million private jet, a $10 million yacht, and a $10 million piece of beachfront property in the Caribbean, but with the possible exception of Gloria McKenzie no lottery winner has ever taken home enough money to actually afford those things unless they're very frugal about everything else. Even then, they're going to have to sell off the toys and cut expenses before very long. Everybody has to live within his means, and it takes a hell of a lot of money for annual expenses of $3 to $5 million to be within your means, unless you're already fairly old. As big as it is, you probably can't do it with the take home from tonight's $267 million PB jackpot.

    $50  million is a hell of a lot of money, but I think that most people still overestimate how much it is.  It's enough to lead an extremely comfortable lifestyle, but it's still a limited resource and it would be easy to burn through it by being too extravagant. I disagree with some of the details, but here's a decent article about what you can really afford with a given amount of money.

    How Does Your Life Change As You Go From Millionaire, To Hundred Millionaire, To Billionaire And Beyond??? | Celebrity Net Worth

    BTW, loved the link. I'm wondering if we should just have a thread with nothing but links to sound and/or interesting financial advice for lottery winners. Kinda think that would be awesome

    I might wake up early and go running.  I might also wake up and win the lottery.

    The odds are about the same.

      TheGameGrl's avatar - character catafly.jpg
      A long and winding road
      United States
      Member #17084
      June 10, 2005
      4524 Posts
      Offline
      Posted: September 26, 2015, 11:43 pm - IP Logged

      buy a vault. 

      stay single. 

      Respect is earned not bought, otherwise walmart would sell it :)

      ~~Is it true, Is it kind,Is it necessary. ~~~

       Thanks be to the giving numbers: 1621,912,119 02014

        Harve$t Moon's avatar - 5str

        United States
        Member #76986
        July 10, 2009
        8034 Posts
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        Posted: September 27, 2015, 12:15 am - IP Logged
          maximumfun's avatar - Lottery-030.jpg
          Lavender Rocket

          United States
          Member #124616
          March 16, 2012
          2642 Posts
          Offline
          Posted: September 27, 2015, 5:48 am - IP Logged

          "That's just an idiot."

          You don't have to be an idiot to to do things that are idiotic. Not to say the guy might not be a complete moron who still doesn't get it, but thinking you're immune just because you think you're smart (and might be right) is one of the things that can get you in trouble. The more you think it can't happen to you, the more at risk you are. On top of that, few people even bother to do the math.

          It may be nice to fantasize about a $20 million private jet, a $10 million yacht, and a $10 million piece of beachfront property in the Caribbean, but with the possible exception of Gloria McKenzie no lottery winner has ever taken home enough money to actually afford those things unless they're very frugal about everything else. Even then, they're going to have to sell off the toys and cut expenses before very long. Everybody has to live within his means, and it takes a hell of a lot of money for annual expenses of $3 to $5 million to be within your means, unless you're already fairly old. As big as it is, you probably can't do it with the take home from tonight's $267 million PB jackpot.

          $50  million is a hell of a lot of money, but I think that most people still overestimate how much it is.  It's enough to lead an extremely comfortable lifestyle, but it's still a limited resource and it would be easy to burn through it by being too extravagant. I disagree with some of the details, but here's a decent article about what you can really afford with a given amount of money.

          How Does Your Life Change As You Go From Millionaire, To Hundred Millionaire, To Billionaire And Beyond??? | Celebrity Net Worth

          Nice article!  So looking at the levels -

          level 1 = upper middle class (?) - so for those who are already in umc - nothing changes (because you probably quit your "day job" and this simply replaces the income you already had) - with the exception that your retirement is 100%+ funded immediately - so you are now retired. (with a personal assistant and a maid that comes in 1 or 2x/week).  If you are a pilot - you simply get a new plane (of the ilk of cessna 172) - but you dont have enough duckets to continually get new planes... you have replaced your "old reliable" with a "new shiney"

          level 2 = lower upper class to middle upper class - play time

          level 3 = upper class

          level 4 = looks down on upper class - the perspective this article posted about what this kind of "mad money" means was eye-popping to me.  I never considered equating 400M$/yr to 40k/yr and what things would cost to the 400M$ person.

          Budget budget budget.  my comfort zone is level 1 - so should I win in the other levels I would need to make me a level 1 budget and live in/on the 12M$ (low estimate so not disappointed with "reality") that would result from a cash prize of 24M$ on a 40M$ annuity jackpot win and invest the rest of the total win in... whatever.

            SergeM's avatar - slow icon.png
            Economy class
            Belgium
            Member #123700
            February 27, 2012
            4035 Posts
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            Posted: September 27, 2015, 10:55 am - IP Logged

            Does that stuff still work?

            There are costs and taxes too.
            With little money you cannot do it.

              CDanaT's avatar - tiger avatar_04_hd_pictures_169016.jpg
              TX
              United States
              Member #121193
              January 4, 2012
              1637 Posts
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              Posted: September 27, 2015, 11:07 am - IP Logged

              buy a vault. 

              stay single. 

              Respect is earned not bought, otherwise walmart would sell it :)

              LOL
              Not too shabby TGG !!!!   Thumbs Up

              Stay Positive, Believe and good things will come your way

                Bondi Junction
                Australia
                Member #57242
                December 24, 2007
                1102 Posts
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                Posted: September 29, 2015, 11:33 pm - IP Logged

                Saw this and thought I'd share. Would really work well for lottery winners too. Seems to me they make the exact same mistakes pro-athletes do. Not sure why anyone would need 15 vehicles unless they had a harem. Also not sure why someone not running a corporation would need 70 people on their payroll. Agreed with everything other than auditing mom comment. Mine would never understand or take kindly to that but since I wouldn't have her managing my money, that issue is moot.

                Funny how so many people over many different disciplines have basically the exact same advice. Oprah told all of this to Toni Braxton years ago and she never listened. Active participation in your finances, sign your own checks, don't overdo the extravagance, learn to say no. Lottery winner Steven White (featured in the HBO documentary: Lucky) also said the same thing.

                So many people saying the same thing and no one is learning.

                http://video.foxnews.com/v/4315209708001/how-pro-athletes-lose-their-fortune/?utm_source=zergnet.com&utm_medium=referral&utm_campaign=zergnet_583505#sp=show-clips

                When some people win a large jackpot, they see it as a bottomless pit, which it is not. If winners try to solve all the financial problems of family and friends, they will go broke in the process.

                This issue is also tied to anonymity, winners can come under enormous pressure from family and friends to "help", but that can get out of hand very quickly. It can take a strong person to say no, and saying no can lead to friction. Anonymity won't solve everything, but it would be very helpful for the winners to have the option.

                We all get a lot out of lotteries!

                  savagegoose's avatar - ProfilePho
                  adelaide sa
                  Australia
                  Member #37136
                  April 11, 2006
                  3300 Posts
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                  Posted: September 30, 2015, 12:16 am - IP Logged

                  yeah the prob is  to not  work out how much income they can expect and what expenses they can expect. and then budget their spending based on that. also remembering  buying anything large usually incurs extra ongoing expenses to maintain it, from cars to houses. taxes, insurance etc maint costs. keep the spending below income and your lotto win will be a life long   benefit. the 1st part is determination of how much you can spend ea year

                  2014 = -1016; 2015= -1409; 2016 JAN = -106; FEB= -81; MAR= -131; APR= - 87: MAY= -91; JUN= -39; JUL=-134; AUG= -124; SEP = -123; OCT= -84  NOV=- 73 TOT= -3498

                  keno historic = -2291 ; 2015= -603; 2016= JAN=-32, FEB= +12 , MAR= -86, APR = -77. MAY= -48, JUN= -29, JUL=-71; AUG = -52; SEPT= -43; OCT = +56 NOV = -33 TOT= -3297