Would you rather win a $700k House or 700K in CASH?
Lottery winners are often more broke one year after their big win than they were before it. I want to tell you about a couple I came across recently who were faced with a dilemma after they won a lottery.
The couple won a house in the Boys Town lottery and they were understandably ecstatic about it. But then they had to worry about what to do with the house. It wasn’t in a suburb that they wanted to move to, so the two options were:
- To rent out the house
- or sell it and pocket the cash, minus agency fees.
With Financial Independence In Mind, What Would YOU Do After Winning the Lottery?
I know there are other factors at play such as where it was located etc, but let’s just say that the house was located in a decent city suburb.
Either way, you could pocket the rent, or the lump sum cash right? So it would be a win.
But have you heard the statistics on what happens just one year after people have won a lottery?
9 times out of 10 people are MORE broke after winning the lottery THAN BEFORE their win.
This is because most people don’t know how to manage their money when they have it.
Thinking that extra cash-flow will make a difference to your circumstances is flawed thinking – it doesn’t.
What matters in creating true wealth is consistently spending less than you earn, saving the difference and investing it.
Keeping a tight grip on your expenses is major. And having a plan for your spending is vital if you want to get ahead.
So here’s my question to you today. What would you do with that $700k win? What would your plan be to stay wealthy one year, two years, five years out from that win?