Lynnae will never win the lottery, because she is too frugal to buy the tickets.
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I recently read an article on the New York Post website about a guy name Jack Whittaker who in 2002 won the $314 million dollar PowerBall lottery and opted for the one time lump payment of $93 million. Ruined him. Everyone wanted money from him. Lost friends. Could not trust anyone. His wife left him. Hung out at strip clubs. Drank like a fish. Ugly. The interesting thing was that he was already a very successful entrepreneur before he hit the big jackpot. Speaks to the benefits that come from hard work and “making it” on your own.
So this made me think, “Would I remain frugal if I won the lottery?” I like to think I would. Sure, I would upgrade some things. Pay off the car and the house. Maybe take the family to Europe in a couple years. But real frugality is a choice to conserve, not done because of situation. I know many people that started frugal because of circumstance and stayed that way when they came out of debt because it provided intrinsic satisfaction. Priceless. I also believe if you have a disposition towards frugal living, charity, and helping others then you would likely remain that way even if you won a huge sum of money. Winning a ton of money would seem to make you more of what you already are. If you are decent, humble, frugal, and generous, it makes you more so. Likewise if you are irresponsible, immature, and wasteful. With that said, I would welcome the opportunity to test my theory. I have a PayPal account. Any takers?
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Photo by midweekpost.
October 29th, 2008 at 4:51 am
Honestly, I think I would stay frugal. I can see myself paying off our bills (including those damn student loans), moving (we bought a house in a bad neighborhood during our “bad-decision” time), and doing a few things to the new house when we move.
But frugal living really is very fun and rewarding. When you treat everything, including life itself, as a gift - well, everything seems much better. I know that 2 years ago, a bag of cheez curls would have meant nothing to me and been devoured in one sitting. But now, when I find a sale and get a bag free or cheap and treat myself to it for a job well done, I enjoy every bite.
I’d also invest a little more time and money into my hobbies - there’s a lot of things I enjoy that I fell out of because I can’t afford to right now. Gardening (large-scale) comes to mind. And painting.
The only place I can see myself going “wild” is with friends and family. I have a tendency to overbuy gifts for birthdays and holidays, and like to surprise people with random gifts. I can see my charity increasing, but not in an extravagant way. But I’d still be clipping coupons and playing the grocery store sale game - I absolutely love it!
Thanks for making me think at 7:50am
October 29th, 2008 at 5:02 am
My husband and I do not play the lottery, which in and of itself is frugal!
October 29th, 2008 at 5:37 am
I would change a few things and stay frugal with a few things. I would buy a vacation home. Other than that I think that I would give away a great portion. All anonymously. I want to give to those who need not to those who want.
October 29th, 2008 at 5:48 am
I’m not sure. Whenever the lottery gets big I make a fun list of where I’d put the money - tithe; charities; college funds for my kids, my sister’s kids and my sister-in-law’s kids; pay off our debt and that of immediate family members; give annual $12K gifts to immediate family members and a few friends for 3-5 years; start college scholarship funds at my alma mater and that of my husband. I’d also invest in a business I’ve always wanted to try but never had the ability to do.
After that, the money just sits there earning interest. Will I be frugal? Possibly. But I would also have tremendous freedom to try things I’ve never tried before - such as the business I have always wanted to open.
October 29th, 2008 at 7:18 am
I would remain frugal but I might upgrade a few things or add some luxeries. I would probably hire a housecleaner and take a nice vacation or two. I’m frugal at heart so I think I would have a hard time buying expensive things and blowing all of my money at once.
October 29th, 2008 at 7:23 am
I would remain frugal. I would pay off our home, car, and all of our debts, then set up a trust fund for my grandchildren and help my family members for five years. Otherwise, I don’t think much would change, because I like being frugal.
October 29th, 2008 at 8:20 am
Well, I would have to find a winning ticket on the street, since I don’t play (part of being frugal.)
To be honest, I am not sure. I would like to think that I would remember past mistakes and learn from them, but on the other hand, I do know how to spend money well. I would probably take the annuity option so I could get the money each year as a hedge against going completely crazy.
October 29th, 2008 at 8:20 am
For the most part I would stay frugal. Many of the things I do, are for the environment anyway, so i would continue to do them. Plus I don’t believe in being wasteful. The things that I dislike the most I imagine I would stop doing though.
October 29th, 2008 at 8:53 am
I don’t know. If I won 92 million dollars… I can’t say for certain I would remain frugal. I would probably buy a bigger house, a vacation home or two, a maid!, stuff like that.
Now if I won a smaller amount, like 1 million, things would probably remain as they are now. I would be set for retirement though!
October 29th, 2008 at 9:12 am
That much money is enough to make anyone go nuts. But here’s the thing…
If you make it inaccessible, you won’t spend it. Same strategy as those of us who use automatic payments to our savings account.
Here’s what I’d do:
1. Quit my job and find a part-time job doing something fun (to kill boredom).
2. Write 2000+ words a day.
3. Hire a financial guru to help me plan the rest of this.
4. Invest in a home.
5. Decrease the rest of my bills (car, electricity, insurance, etc. etc.) - this one seems a little funny to some, but if I have the opportunity to, I’m not going to keep paying high anything if the improvements will pay for themselves in the end.
5. Invest in a low-risk fund to earn interest (93mil is a lot of buckets).
6. Hopefully, 93mil would generate enough interest to live on decently. My financial guru would help me plan this part.
7. As to my family… I know they would want some money; I think that I would simply insist repeatedly that my money is tied up and inaccessible. If it were a dire situation, I would help.
Would I remain frugal?
8. Yes, if only because after being frugal for so long, I cannot justify spending money on things I KNOW I can get cheaper with another method.
October 29th, 2008 at 9:14 am
Honestly, I’m not sure I would stay very frugal if I hit the lottery for a huge amount. Although, I don’t think I would go off the deep end either. I would love to hit the lottery so that I could do more volunteer work at local charities and make that sort of my “job.” While I would give money, a lot of these places need people to dedicate their time. I do what I can after work hours, but I could do a lot more if I didn’t need the money from my real job.
October 29th, 2008 at 9:56 am
We do not play either but I would like to think I would LOL!
October 29th, 2008 at 10:05 am
If I won the lottery, I’d put a new roof on my double wide. If there’s any left over…
Yeah, I think I’d pay off everything and remain frugal.
October 29th, 2008 at 1:18 pm
I’d pay off debt and take an extra vacation but I’d want to remain true to myself and not think I have to buy stuff to be happy.
October 29th, 2008 at 2:22 pm
Ha! Good question. I agree that you’re more apt to stay frugal if you’re motivation is something other than simply saving money. A lot of people are “frugal” only by necessity. but if you truly care about something beyond that, like protecting the environment, i don’t think a lottery win would ruin you. At least i hope not. Course, like you, i’d never know cus i don’t buy lottery tickets.
October 29th, 2008 at 2:25 pm
You are absolutely right. You are what you are, and more money doesn’t make you different, it just makes you the same with more resources to do whatever you normally do with money.
If you are good with finances, then you’ll be good with a big wad of dough. If you are a poor money manager, and very irresponsible with money, you’ll have a great time for a short time with a big wad of dough.
The whole idea of winning the lottery is really much more hype than reality, so figuring out what you’d do with the extra money and how it might change you isn’t of much value. You’re more likely to be struck by lightning, so start thinking about how that event would change you.
If you want to see the real odds of winning the lottery, take a look at: http://www.frugal-living-freed.....ttery.html
The odds aren’t good at all. I’ve contacted two state lotteries and asked how they calculate their odds. Neither have responded, and it has been weeks and even months since my requests. They don’t want to tell anyone because they aren’t using an approach that is reasonable and honest.
Clair
October 29th, 2008 at 5:37 pm
It would be impossible for me to win the lottery since I don’t buy lotto tickets at all. But, if I buy one and win, I’ll still be frugal and follow a budget (albeit a bigger one) just for my own sanity.
October 29th, 2008 at 7:06 pm
I have $2/month in my budget for lottery tickets - I categorize it as ‘entertainment’
I’m already debt free and frugal, and that would still be the case. Once I spread it around my huge family, my charities, etc, I would be down to a much lesser amount. I’d buy some wooded acreage off the grid, be entirely self-sufficient, and garden to my heart’s content
And I would do some camping around the USA - which is something that just thrills me to no end! While I might do more things (not having to work), I think I would still do them fairly frugally!
October 29th, 2008 at 8:00 pm
It will never happen because my frugality keeps me from playing the lottery, but I think I would stay frugal, but also be able to gift charities largely and take my family on a huge trip or something.
I also would never take the lump sum.
October 30th, 2008 at 4:55 am
I would like to think I would remain frugal. I might go on a better vacation and upgrade our home.
October 30th, 2008 at 6:38 am
I would upgrade some things, pay off bills & definitely have a few splurges. Ultimately I would keep my frugal ways because frankly I hate spending money!
I think & rethink purchases every time I want to buy something, even small ticket items many times. I really assess, “Do I really need this?” Even when I’ve saved for a while for something I still question buying it.
I would give some money to my family & a very few select friends. I definitely would not give money to anyone who came out of the wood work. If you weren’t friends with me or didn’t speak to me before I came into the money then don’t expect anything from me!
October 30th, 2008 at 7:15 pm
I’ve discussed this with my therapist, and I feel that I would still stay frugal, as I hate paying full-price for anything and have fun finding deals/coupons and the best price.
Of course, I think that I might upgrade my car and be a bit freer when buying my clothes, but I would never go the designer route.
November 1st, 2008 at 2:33 pm
93 Million, that’s a lot of money. I’m not sure it would ruin our lives. I’d love the opportunity to find out though!!!
We’d pay off the house, hire qualified people to fix it (roof, new wiring, siding, etc), buy 2 new vehicles (and drive them till they died), college funds, pay off debts, sink enough into savings to earn living expenses in interest… I wouldn’t quit my job, but I might work with out pay (non-profit!). That still leaves a lot left over. Guess I’d consider buying a vacation house & actually taking a vacation!