We all dream of winning a big lottery prize that will suddenly make us millionaires, but like the powers of superheroes, a large sum too carries a great responsibility.
This is the work of Andy Carter, chief adviser to the National Lottery, the United Kingdom’s lottery body, who has revealed to the Daily Mail what are the worst mistakes that the new rich usually make.
“Winning the lottery makes people happier, in general. It gives them more options, but it can take a while to get them,” says Carter, who has advised more than 2,000 millionaires during his careerwith a total of prizes of 2,000 million pounds.
According to Carter, winning the lottery only accentuates existing personalities and relationships. Do you manage money well? You will also manage those millions well, he says. Do you have a bad relationship with your partner? Winning the lottery tends to make it worse.
Andy Carter has seen relationships break up after winning the lottery, but he reasons that those partnerships probably would have ended anyway because “It’s part of life; the lottery only exaggerates it.”
Helping children buy property or contributing to their parents’ retirement income is probably the first choice for parents. new millionaires But it’s a mistake, says Andy Carter, to give away too much.
“The winners want to help everyone and this generosity is well-intentioned. But people should decide first what you need”, says the advisor.
“For example, if you have children under 30 years old and you want to help them with the purchase of a house, Can they afford to do it and stop working themselves?“, ask.
Andy Carter introduces the winners to independent financial experts who explain the choices they can make with their assets and analyze the funds that they might need in the future.
“Experts analyze your life as a whole and make a plan; then the winners can calculate how much they can afford to help others,” he says.
A shiny Ferrari It might be at the top of your list if you’ve won the lottery, but Andy Carter has seen these dreams dashed when reality hits the winners.
“Can you fit a baby stroller in the back of a sports car? Some winners rent a sports car for a weekend and then they realize it wasn’t all it was cracked up to be,” he says.
The same goes for rental properties. Andy has seen winners who talk about invest a lot in flatsbut they decide not to do it when they discover that it does not suit their needs.
Carter explains that in these cases, your wealth will be tied to the properties and there will be additional tenant management and ongoing maintenance issues. In fact, spending money on experiences is much more popular than splurge on material purchases like houses, says Andy Carter.
“They want that fantastic vacation to spend time with someonemore than the vacation itself,” he explains.
“It’s very rare that people make fools of themselves with their money,” he says. “I would say that about 98% of our winners “They are very cautious with their new wealth,” explains the advisor.
“It’s not often that people go from a two-bedroom house to an eight-bedroom house, even if they earn 100 million,” he says. “They usually go from a house first from two bedrooms to a four bedroom“he continues.
Instead of traveling directly in business class, people often opt for the premium economy class. And someone who has always bought a second-hand car will still want a second-hand car. “But I might buy a better one,” Carter says.
So does winning that much money change the winners’ values? Andy Carter says no, they just have more money to live according to those values.
“The winners are quick to tell us that they will continue shopping at the supermarket where they used to do it. What they are really saying is ‘my values are not going to change’. They are quick to remind us that they are normal people even after winning. “I think it’s a natural defense mechanism,” he says.
The expert advisor also reveals that women They tend to handle their new wealth better than men. “Women are probably more open with their emotions and therefore will deal with them more quickly,” she says.
As for ages, young people tend to have a reputation for wasting money without thinking too much about the future, but in reality those under 30 They are more financially astute than is believed, says Andy Carter.
“They’re very financially cautious and very connected,” he says. Plus, there’s usually a sensible parent who gives them advice. “The people who best deal with the problem “They are those who talk about it with friends and family”says the advisor.
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