WATCH: Michelle Obama Weighs In On President's Past Drug Use
Keli Goff: Did Michelle Obama Make a Major Misstep with…
Some of us saw the story about the woman who won the lottery as a teenager and blew her money on cocaine and shopping sprees. Bad idea. As a Finance Professor, I thought I would make a quick list of things to think about if you ever win the lottery.
1) Don't buy the damn lottery tickets anyway - Your probability of winning the lottery is incredibly low, and state governments use lotteries as a way to manipulate the fantasies and desperation of the poor for an additional source of tax revenue. The best use of your lotter money is not to buy into the lottery. Save that money instead.
2) Drugs and gambling are very bad ideas - Just ask Antoine Walker, the former NBA star who went to jail for not being able to pay his gambling debts. Antoine has not gotten involved in drugs, but many athletes and entertainers have. An insatiable appetite for dope, combined with a seemingly infinite amount of cash is a recipe for financial disaster.
Lottery Pictures
Night shift Git-n-Go convenience store manager Melissa Mason, right, hasn't even bagged up his beer and soda yet as regular customer Bryan scratches off his lottery tickets on the counter in Newton, Iowa, July 9, 2009. (Tom Gralish/Philadelphia Inquirer/MCT)
MCT
An unemployed farmworker hopes for luck as he scratches a lottery ticket, a common sight on Mendota's 7th Street. With a 41 percent jobless rate, the town's social fabric is tearing at the seams. (John Walker/Fresno Bee/MCT)
MCT
LONDON - NOVEMBER 04: A shop displays an advertisement for the Evening Standard newspaper reporting on the U.S. presidential election and shows images of candidates Barack Obama and John McCain, next to an advertisement for the British National Lottery on November 4, 2008 in London, England. Voting is underway in the U.S. presidential elections with Democratic presidential nominee Sen. Barack Obama (D-IL) leading in the polls against the Republican presidential nominee Sen. John McCain (R-AZ).(Photo by Oli Scarff/Getty Images)
Getty Images
LONDON - NOVEMBER 04: A shop displays an advertisement for the Evening Standard newspaper reporting on the U.S. presidential election and shows images of candidates Barack Obama and John McCain, next to an advertisement for the British National Lottery on November 4, 2008 in London, England. Voting is underway in the U.S. presidential elections with Democratic presidential nominee Sen. Barack Obama (D-IL) leading in the polls against the Republican presidential nominee Sen. John McCain (R-AZ). (Photo by Oli Scarff/Getty Images)
Getty Images
A vendor shows a ticket of the lottery of the Colombian department of Meta, with the portrait of US Democrat presidential candidate Barack Obama on October 23, 2008, in Medellin, Antioquia department, Colombia. The face of Obama now graces all the Meta lottery tickets in the country and has helped to increase the sales. "We picked Obama's portrait for our lottery because we're always looking for somebody people are raving about. He's ahead in (US) opinion polls and right now he's the most popular guy around here," Meta Lottery manager Luis Enciso told AFP. AFP PHOTO/Raul ARBOLEDA (Photo credit should read RAUL ARBOLEDA/AFP/Getty Images)
AFP/Getty Images
A woman holds a ticket of the lottery of the Colombian department of Meta, with the portrait of US Democrat presidential candidate Barack Obama on October 23, 2008, in Medellin, Antioquia department, Colombia. The face of Obama now graces all the Meta lottery tickets in the country and has helped sell more tickets. "We picked Obama's portrait for our lottery because we're always looking for somebody people are raving about. He's ahead in (US) opinion polls and right now he's the most popular guy around here," Meta Lottery manager Luis Enciso told AFP. AFP PHOTO/Raul ARBOLEDA (Photo credit should read RAUL ARBOLEDA/AFP/Getty Images)
AFP/Getty Images
Reproduction released by the Meta Lottery department in the Meta department, central Colombia on October 22, 2008 of a lottery ticket depicting the portrait of US presidential candidate Barack Obama. AFP PHOTO META LOTTERY-HO (Photo credit should read HO/AFP/Getty Images)
AFP/Getty Images
KANSAS CITY, KS - SEPTEMBER 27: Denny Hamlin, driver of the #18 Z-Line Designs Toyota, and Brad Keselowski, driver of the #88 U.S. Navy Chevrolet, drive during the NASCAR Nationwide Series Kansas Lottery 300 at Kansas Speedway on September 27, 2008 in Kansas City, Kansas. (Photo by John Harrelson/Getty Images for NASCAR) *** Local Caption *** Denny Hamlin;Brad Keselowski
Getty Images for NASCAR
KANSAS CITY, KS - SEPTEMBER 27: Joey Logano, driver of the #20 GameStop Toyota, races Brad Keselowski, driver of the #88 U.S. NAVY Chevrolet, during the NASCAR Nationwide Series Kansas Lottery 300 at Kansas Speedway on September 27, 2008 in Kansas City, Kansas. (Photo by Jason Smith/Getty Images for NASCAR) *** Local Caption *** Joey Logano;Brad Keselowski
Getty Images for NASCAR
A blind musician performs as other blind vendors sell lottery tickets to customers in Bangkok on February 29, 2008. Thai current account surplus in January rose 3.7 percent year-on-year on robust growth in exports to the kingdom's key markets including the US and Japan, the central bank said. The surplus in the current account, the broadest measure of trade in goods and services, increased to 1.39 billion USD with exports up 33.6 percent to 13.84 billion dollars, the Bank of Thailand said in a statement. AFP PHOTO / Saeed KHAN (Photo credit should read SAEED KHAN/AFP/Getty Images)
AFP/Getty Images
3) Getting caught up with the bling - For some reason, African Americans have a strong fascination with status symbols. We like to make sure that everyone knows we've won the lotto, and some of us seem to think that having the nice car, big house and fancy clothes will make our point. The problem with status symbols is that they are not only a waste of money, they are also the quickest way to draw "haters" and "hangers," all of whom expect you to solve their financial problems. Personally, I've learned the value of keeping my financial situation to myself: no one needs to know how much money I've got.
4) Becoming a one-man charitable foundation - Related to point three, the truth is that endless amounts of generosity can be the very thing that destroys you. I have a friend who took the millions she made from her small business and paid bills for every relative within a 1,000 mile radius. Well, when her business hit hard times, those same people were not willing or able to help her out of her predicament: She'd become everyone's hero but had no hero of her own. Be generous and charitable; just put a concrete limit on how much you give away.
5) Not keeping accurate records or a budget - If you don't keep a budget, you are going to waste a lot of money, period. If you bump into a ton of dough, find a good financial advisor so you can enjoy your cash and keep your stash, all at the same time. It's not about being miserly, it's just a matter of being mature and balanced.
Be smart, be educated, be prosperous. Life is too short to be broke.
Follow BV on Money on Twitter!
Dr. Boyce Watkins is a Finance Professor at Syracuse University and author of "Financial Lovemaking 101: Merging Assets with Your Partner in Ways that Feel Good." To have Dr. Boyce commentary delivered directly to your email, please click here.
Comments: (31)
Add a comment
By: Gpowell on 9/05/2009 10:38PM
It is easy for those in a position of comfort and privilege to say don't play the lottery....me I play once in a while b/c you never know...but it's not my only "financial" plan....
Reply to this Comment | Report This
By: gscott on 9/07/2009 4:21PM
That right gpowell I'm aformer gpowell as well ,but as long as you don't over indulge in the fantasy. I don't see anthing wrong with playing a couple of bucks here and there.
Report This
By: Danny on 9/06/2009 1:34AM
I applaud your advice,it's plain common sense. In reference to #3,way to go Dr. Watkins, I'm glad you see that. It usually takes one of one's own
to get the point across. I'm Hispanic and the same goes for my race who can also be just as bad about that too,does "Guicho Dominguez" ring a bell? Anyway, now lets see how many people "listen".
Reply to this Comment | Report This
By: IMHOTEP on 9/06/2009 3:03AM
IT REALLY DEPENDS ON HOW MUCH YOU HIT FOR,IF YOU WIN 80MIL AND YOPU END UP B ROKE THEN YOUR DESERVE TO BE BROKE.BUT TRYING TO TELL A PERSON WHO WASNT BORN RICH NOT TO GO ON SHOPPING SPREES AND THINGS OF THAT NATURE,IS ASSONONE,THE FIRST THING MOST WILL DO IS GO SHOPPING FOR CLOTHES,CARS AND HOUSES.ITS JUST A THING THAT PEOPLE WILL DO.
Reply to this Comment | Report This
By: this is me on 9/06/2009 5:00PM
Life is a dream with an abundance of reality and you only have a chance to fulfill it once. be careful but be smart. 20 million doesn't go a long way unless you have a plan. Dont quit your job for 5 or 10 million.
Reply to this Comment | Report This
By: Trina on 9/07/2009 6:43AM
DR BOYCE , IT RIGHT DON'T GO GIVING OUT YOUR MONEY TO FAMILY AND FRIENDS THAT IS THE WRONG THING TO DO . BECAUSE WHEN IT IS ALL GONE SO ARE THEY . IF YOU WANT TO DO LITTL SOMETHING FINE BUT DON'T GO CRAZY . MONEY CAN GO FAST REAL FAST I HAVE A PLAN IF EVER I GET MONEY . IT IS GOING IN THE BANK AND CLEANING UP MY MY BILLS . NO ONE IS GOING TO GET ANY MONEY OUT OF ME . I WILL BUY SOMETHING PLACES AND RENT THEM OUT . AND SOME AREA I KNOW WILL DO GOOD . AND I SMALL BUSINESS THAT I KNOW IS BRING IN EX MONEY . THAT IS IT ONCE I GET ALL THE RUNNING RIGHT , I WILL GO OUT AND DOING NICE THINGS FOR ME . BUT WON'T GO CRAZY AND FOOLISH FOR ANYONE MOM SISTER BROTHER CUZ AUNT UNCEL FRIEND LONG LOST CUZ . NO ONE TIMES ARE JUST TO HARD .
Reply to this Comment | Report This
By: joe Person on 9/07/2009 7:19AM
One of the biggest mistakes African Americans make is. If they win a few million dollars. You cannot maintain a million dollar lifestyle forever. The time share,jewelry,clothes,expensive vacations,high price cars and big time parties are only temporary. No matter how high a bird fly. He have to come to roost sooner or later.
Reply to this Comment | Report This
By: Lovelady728 on 9/07/2009 8:36AM
Why do you have to make it about African Americans making a big mistake if THEY win? Both you and Dr. Watkins don't realize that lottery winners black AND white have messed up some serious lottery money. Do your homework first!
Report This
By: marvin on 9/07/2009 12:40PM
never let your dollars & cents OVER RULE your common sense
Reply to this Comment | Report This
By: Railgun on 9/07/2009 1:11PM
Very sound Advice !
Reply to this Comment | Report This