Color Your Life Happy

Take Evelyn Adams who won the New Jersey lottery not just once in 1985, but again in 1986 for a grand total of $5.4 million. Thanks to her gambling habit and her inability to say “No” to all the folks who had their hands out, all of Evelyn’s money is gone and she now lives in a trailer. “

Then there is William “Bud” Post. Even though Bud won $16.2 million in the Pennsylvania lottery in 1988, he had spent it all within a year on lawsuits and failed business ventures. He now lives on his Social Security.

People who are not used to having money, or who have never learned to manage money are in the most danger. They don’t know the importance of planning and investigating before investing. They also don’t realize the cost of maintaining the big house, boat or grand lifestyle they crave. Worst of all, if they have unhealthy relationships with their family and friends, sudden winnings will magnify these feeling, emotions and interactions.

Losing fortunes doesn’t just happen to lottery winners, of course. Celebrities who earn $10 million on one movie deal may spend lavishly, but not earn anywhere near that amount for the next few movies.

The sudden millionaires in the early dotcom days often spent their sudden wealth as if it would never end. When it did, many of them lost more than just their homes and cars.

Then there are those who come into sudden wealth as the result of a large insurance payout or inheritance.

Any sudden money that is larger than you are accustomed to brings with it emotional reactions and the urge spend impulsively. To avoid going into a tailspin, Susan Bradley, author of Sudden Money suggests you do the following: