5 Common Mistakes People Make When They’re Rich
It is easy to believe that winning the lottery will put an end to all our money problems, but time and time again we hear the story of a millionaire that has gone dead broke after purchasing one too many ocean view apartments or Bugattis.
With more money comes more expensive things, and if you aren’t careful those million-dollar figures can quickly go down to one.
From rags to riches, and then back to rags. Here are some common mistakes people make when they’re rich.
Having no idea how much they spend
Tracking your spending is important to do, regardless of how much money you have.
Many rich people think by having a high income or winning the lotto, that these rules don’t apply to them.
Lottery winners, Lara and Robert Griffiths are a prime example of what happens when you don’t track your spending. The couple won AUD$2.8 million and blew the lot on a lavish lifestyle and terrible investments, leaving them broke.
Roger revealed he had just $14 to his name and Lara was surviving on the kindness of her mother.
Thinking you don’t need the help of a professional financial advisor
A lot of rich people believe they are capable of looking after their money, but it is useful to consider getting help from a financial advisor.
David Lee Edwards is a prime example of overspending and not seeking the advice of a professional. David won AUD$45 million and spent the majority of it on fancy cars, mansions, and even a plane!
It goes without saying he should have sought the advice of a financial advisor so he could have avoided being broke 5 years later.
Taking too much risk when investing
While taking a financial risk can pay off in a surplus of profit, sometimes these risks can backfire. Lisa Arcand won AUD$1.2 million back in 2004 and quickly lost it all after opening a restaurant that went bust.
Investing in the wrong shares or business endeavours can quickly leave even the richest of people in a bad financial position.
Overpaying for things
A lot of rich people don’t pay attention to the smaller details and end up wasting a tonne of money. Not personally auditing their accounts for unnecessary fees, reviewing bills for overcharges, or comparing prices can see a lot of money that could have been used elsewhere go to waste.
Allowing their wants to become needs
We all want things that are just out of our budget, but when you have the money to afford your wants, they can often become needs.
A lot of rich people get into the mindset of thinking they need bigger boats, more expensive cars, and a house twice the size of the one they’re already living in. This money issue is common in wealthy people and it can be very costly.
By avoiding these common mistakes you can make your lottery win last! Play now for a chance to win from the draws of the biggest international lotteries in the world.
FAQ
Should I take risks when investing?
While taking a financial risk can pay off in a surplus of profit, sometimes these risks can backfire. Lisa Arcand won AUD$1.2 million back in 2004 and quickly lost it all after opening a restaurant that went bust.
Should I track my spending?
Tracking your spending is important to do, regardless of how much money you have. Many rich people think by having a high income or winning the lotto, that these rules don’t apply to them.
Does The Lottery Office support any charities and good causes?
Yes. The Lottery Office Charitable and Community Benefits Fund was set up to ensure that a percentage of our revenue would be put back into local communities and organisations.
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