Success Wizard: Lessons in Money Management-Why Lotto Winners are Still Broke

By Jordan Patente

(Originally published on July 27, 2011; reprints previous original material published in this section)

My great grandmother passed away four years ago. She left us with her six-digit combinations of lotto numbers. I still remember stories about her leaving the house without notifying anyone that she was betting on the lotto. That’s how devoted my 96-year-old granny was on getting that jackpot. Just like every Juan, she, too, had plans on spending the millions. Whenever there was an opportunity, Lola would tell me she’d

Lessons in Money Management:

Why Lotto Winners are Still Brokedistribute half of the amount to all her grandchildren to guarantee them a better future, and the other half would go to my account (my relatives claim that I’m the favorite grandson). It sounded like a good plan, but she left us without winning the jackpot.

Once, I tried my hand at fulfilling Lola’s lotto dreams. I gambled on her numbers, hoping that she would guide me in getting the jackpot. A local network’s show about a lotto winner’s life story influenced me to do it. In the show I saw scenes of family members claiming the jackpot from their departed loved one’s lottery ticket. Unfortunately, their fortune was not mine. I never won it.

Who doesn’t want a better future for their family? But I’m sure you have heard of jackpot winners who are now broke. Before winning, they only owed a couple of thousands to their friends and relatives, and several years after winning multimillion jackpots they are indebted to major financial institutions. Just like Lola, they shared their fortune with their family, relatives and friends. Most of them invested their money in buying mansions and luxury vehicles. Some invested their money in businesses.

What Went Wrong?

Winning the lotto is parallel to winning multi-million contests and competitions. Most international boxers before Manny Pacquiao are still broke. Some of the famous celebrities had the same fortune, but are now in financial turmoil. Money is not the answer to our financial problems: it’s how we manage it.

Money Management

Money management is an organized way of protecting your money in aspects like investing, budgeting and banking. You can’t just spend that jackpot money freely without caution. Do so and you will soon end up broke.

Most of us act thirsty and want to consume money whenever we have it in our possession. I call it “payday sickness.” I know a lot of colleagues who spend the bulk of their hard earned money on payday. Payday sickness is a clear indication of not valuing money. For money to stay and be loyal to you, you have to value it. Make it feel important and respected. If this is your habit with regard to payroll money, you will most likely do the same with the Lotto jackpot.

With money management, you have to start with ways to multiply that money before you spend it. Sharing your fortune with your family, relatives and friends is not a bad thing—you just have to do it systematically. Most gratuities are temporary. They, too, will let go of that money easily. Help them invest and spend it wisely.

What I would do in that situation is to share with them a minimal amount and then buy a franchise or open up a business. Stocks will be shared with them. It will not be easy money for everyone. They have to wait for it to bear fruit, before they can enjoy it. Its long-term effect, however, will benefit all of us and teach them proper money management in the process.

Mansions and Luxury Cars

I’ve always envisioned living in a mansion. I want it modern, with glass walls, and I want a huge garage housing my top-down convertibles and high-tech RVs (recreational vehicles). Winning the jackpot can make these visions a reality. But it’s just that those are not my priorities. Instead I will settle for a humble house and a multi-purpose vehicle. The world’s third wealthiest man Warren Buffett (“Forbes” magazine, March 2011 issue) still lives in his 1957 five-bedroom stucco house inOmaha,United States. He remains humble even with his immense.

 

Jordan Willy Patente is the president of Dynamic Empowerment Philippines and has been a success coach for five years. He has also conducted motivational talks and directed musical and theatrical productions.

(All rights reserved. Copyright Manila Bulletin. May not be reproduced or copied without express written permission of the copyright holders.)

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Posted on September 15, 2011, in Business Agenda Classifieds Columns, Success Wizard and tagged , , , , , . Bookmark the permalink. Leave a comment.

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