People who win it all then lose it

I have read two stories this past week concerning ordinary British people who have won a fortune through the lottery only to blow it all and finish up broke and in debt within a few short years. How does this happen – besides the obvious that is…? I always thought that these folk were given financial advice after their big win, counselling even, to ensure they make the most of their windfall and that it dosen’t ruin them. Of course it is up to those individuals as to whether or not they take any advice given to them, but it seems that after the sensible advisors leave the bad one’s come through the back door and this is where these people get into trouble. They listen to the wrong people, and it is surprising how many experts you have in your family once you win a fortune…

Take case one…

* Man wins £5 million in 2005; splashes out on four luxury cars, mansion in Devon and gives away large amounts of cash to family and friends. Said friends also suggested ways of investing his money – result – three years later he is bankrupt, living in a seedy room in a guesthouse and is in debt.

case two…

* middle aged couple on disability benefits and living in council flat buy an instant scratch lottery ticket and win £100,000. Within 12 months they buy a boat, a caravan, give away cash to friends and family (one thing you always have plenty of at times like these are friends and family…), they take eight holidays in ten months. One year later they are broke. They cannot pay their council rent and are in arrears; they have lost their benefits due to the money they won and have had to sell their car, boat and caravan.

While these people are ultimately responsible for losing their good fortune I think maybe there should be some restructuring of the lottery payout system. Granted not everyone blows all their money and ends up broke, but folk such as these, who would normally never have seen so much money in the normal course of their lives, are victims of their own ignorance and not necessarily greed. They simply were incapable of handling more money than they had ever seen before. Maybe larger than average lottery payouts could be paid in instalments…

It is lovely to see a battler come out on top, but tragic when they ultimately end up as the loser.

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