- Posted April 1, 2012 by
This iReport is part of an assignment:
In need of a Money Coach?
- My Ten Sense: What to do when your money is low
- My Ten Sense: Making more money isn’t the answer
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- My Ten Sense: Prepare your children so they don’t ask for handouts
- My Ten Sense: 10 things college students should know from student loans to landing their dream job
My Ten Sense: How to quickly blow $1 million lottery winnings
If you won $1 million dollars in a lottery, you would probably declare that you’re rich. But you’re really not.
That $1 million can easily be blown in less than a year, which is how long it's been reported that most lottery winners squander their lottery winnings of $1 million or less.
So don't go on a wild spending spree or you will be broke before the one-year anniversary of the day you became "rich".
Think about it. After taxes on your winnings, you only get $650,000-$700,000.
If you pay off your consumer debt, you will have $600,000 left over.
If you pay off your mortgage or buy a house, you will spend at least $150,000. But I bet you will want to upgrade to an upscale home that is at least $350,000. That leaves you with about $250,000.
If you buy a boat or a luxury car, you spend another $50,000-$100,000, leaving you with $150,000-200,000.
If you go on a shopping spree and buy a few Rolex watches, designer shoes and designer clothes or sports/outdoor gear, you can easily spend $50,000.
You have $100,000 remaining to vacation and dine at upscale restaurants and you may give some money to family and friends.
You start to notice your bank account running low, so you start accepting the many credit card offers you've been receiving since you won $1 million, and you accumulate debt up to $100,000.
It's only been six months since you won $1 million, but you are penniless because you quit your job, you spent all of your winnings and you accumulated credit card debt to keep your new "rich" lifestyle. So like many lottery winners before you, you declare bankruptcy.
This doesn't have to be you.
Watch my video to learn how to hold onto your $1 million if your lucky enough to win the lottery for a lifetime of financial security and also see more videos on how to pay off your debt and go to college for free at http://mytensense.com/2012/04/how-to-quickly-blow-1-million-lottery-winnings/.