Winning the lottery can be both a blessing and a curse

Robert Pagliarini, a Forbes magazine contributor, has been a sudden wealth financial adviser for over 15 years. He’s had the chance to work with many clients who have received a windfall, and he’s noticed there are predictable patterns – patterns of thinking and behaving that can explain how a multimillion dollar lottery winner can call her money a curse just a month after winning.

Immediately before or right after a sudden wealth event such as winning the lottery, many clients experience an almost out-of-body feeling. Pagliarini refers to this as the honeymoon stage of sudden wealth. They are exuberant. It’s an exciting time and they feel like they are on top of the world. Anything and everything is possible. They celebrate with family and friends. They may buy new cars and larger houses, jet skis and motorcycles. It’s Christmas morning every day, but the thing that makes Christmas so special is that it comes just once a year. The honeymoon phase is an artificial reality that is not sustainable. Their emotions are high, and they are enjoying the charge of the novelty of their new life. But this “high” cannot last forever – most often as little as a few days to over six months – and then reality hits them.

The read why lottery winners crash a big payout, click here.