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Key points
- There is a hidden psychology to winning the lottery that goes well beyond the initial euphoria and happiness.
- A general lack of financial knowledge can lead to poor investments, overspending, and scams.
- Families must learn to manage financial discussions in a way that will minimize relationship stress.
A multi-million-dollar lottery jackpot will change lives forever, but hidden behind immense wealth and endless consumer possibilities lurk threats often ignored, at least at first.
People get hooked on playing the lottery for many reasons, including superstitious thinking, the illusion of control, the gambler's fallacy, and our inability to fully comprehend probabilities (lottery wins are extremely rare occurrences). Research on lottery psychology shows that we are social creatures easily enticed by situations where the cost to play is minimal and the jackpots (albeit extremely unlikely) are enormous. Add to that, our ability to dismiss major obstacles that interfere with our own internal narrative ("Somebody is going to win, why not me!"), and we just seem to keep coming back for more. In reality, we are nearly blind to all the negative forces that conspire to make us unhappy in the months and years following a big win.
Here are three of the worst things about winning a big lottery jackpot.
1. Personal Emotional Struggles
The overnight influx of wealth can lead to significant emotional and psychological challenges. Winners may struggle with feelings of guilt, paranoia, or anxiety about their new financial status. Why am I the one to get lucky? Why was my number picked over all my friends, family, and everyone in my community? It's like survivor guilt, but the lottery version.
For some, winning the lottery can result in a loss of motivation and a lost sense of purpose. When the need to work and pursue personal goals has diminished, overall satisfaction in life may suffer. Lives that were once structured around working to make ends meet must create new stable routines that produce a feeling of accomplishment. Daily habits are crucial for establishing consistent cycles of behavior, helping us manage our time efficiently and achieve our goals. By providing a sense of predictability and reducing decision fatigue, routines promote productivity, mental well-being, and overall success.
2. Risk of Exploitation
Managing large sums of money and making wise financial decisions can be overwhelming. Lottery winners often find themselves facing a sudden loss of privacy as their identities become public knowledge. They may be inundated with requests for interviews, financial advice, or even unsolicited proposals. The constant attention can be overwhelming and disruptive to their personal lives. It looks like The Notorious B.I.G. was right after all when he professed "mo' money, mo' problems."
Once word gets out about your newfound wealth, you may encounter individuals seeking to take advantage of you and your money. Be ready for friends and strangers to approach you with maudlin pleas or unusual business proposals, making it difficult to discern genuine relationships from opportunistic ones. Without proper financial planning and guidance, the wealth can quickly diminish.
Financial experts often recommend setting up a private trust after you win, but before you claim your prize with the lottery office. In other words, don't do anything, or tell anyone, until you hire an estate lawyer, a media advisor, and a financial consultant. A trust can put a fence between you and the blitz of relatives, friends, and strangers who will want your money.
3. Relationship Stress
Money can strain relationships with family, friends, and even romantic partners. Disagreements may arise over financial matters, leading to conflicts and strained connections. It can be challenging to navigate these changes and maintain healthy relationships with those close to you.
A big lump sum of cash can create unrealistic expectations and a desire for a lavish lifestyle, but excessive spending without careful planning or a long-term financial strategy can lead to financial ruin. The adjustment to a new lifestyle can also be challenging, as winners may face difficulties in finding genuine happiness and fulfillment.
Any relationship stress about purchase decisions that existed before the jackpot may end up being amplified in the long run. Sure, you can stretch your entertainment dollar much more, but you will also be raising the stakes on those leisure time choices. Before, you could only visit your partner's family a couple times a year due to limited vacation days and travel budgets. Now, with unlimited time and money, you'll have to invent new explanations why you can't see them once or twice every single month.
It's important to note that while these disadvantages are common, not all lottery winners will experience every drawback. However, being aware of the potential challenges can help individuals make informed decisions and seek appropriate support and guidance when needed.
Copyright © Kevin Bennett, Ph.D. 2023.
References
Bennett, K. (2018). Teaching the Monty Hall dilemma to explore decision-making, probability, and regret in behavioral science classrooms. International Journal for the Scholarship of Teaching and Learning, 12 (2), 1-7. https://doi.org/10.20429/ijsotl.2018.120213
Haisley, E., Mostafa, R., & Loewenstein, G. (2008). Myopic risk-seeking: The impact of narrow decision bracketing on lottery play. Journal of Risk and Uncertainty, 37, 57–75.
Kahneman, D. (2011). Thinking, fast and slow. Farrar, Straus & Giroux.
