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If you won the lottery, what would you do with all your newfound cash moola?

The responsible, sensible, sustainable and smart answer would be to invest wisely and strictly so as to make the money last and grow, AKA not spend lavishly at all.

The fun, optimistic, slightly delusional, totally YOLO, absolutely dumb answer would be to buy everything you ever dreamed of and live your life to the fullest, even if that only lasts a couple of years.

If you weren’t born into money, a new bankroll can be so overwhelmingly sweet that you lose yourself in the flow, and then suddenly, you wake up one day smack bang back in the middle of peasant reality with nothing to show anymore.

Many a lottery winner has been through that exact life trajectory, with the only hope of being rich again centred on furious hustle or winning another lotto.

Take a look at Sharon Tirabassi, a lottery winner from Hamilton, Ontario, in Canada, who won a massive $10 million (about R183m) in the Lotto Super 7 in 2004.

In 10 years, she managed to spend her entire fortune on silly things noted IOL, like huge houses, fancy cars, designer clothes, lavish trips, big parties, and loans to family and friends:

She even took her friends on all-expenses-paid trips to Florida, Las Vegas, California, and the Caribbean. It’s reported Tirabassi also used the money to help pay her neighbours rent and a friend launch a business.

They generously gave her parents $1m and split $1.75m between her four siblings. According to the Mirror, the pair also purchased four vehicles – a yellow Hummer, a Mustang, a Dodge Charger and a Cadillac Escalade.

In addition, the pair bought several homes in Hamilton and rented them out to families on low-incomes.

While spending money on luxury cars is more an ego trip than an investment, buying property could be considered a smart move. But not when you rent it out for next to nothing to help others out, unfortunately.

Then one day Sharon woke up, saw there was just $750 000 left in her bank account and realised she would have to go back to work. The end.

Locally, we turn to the South African reality show I Blew It for some tragicomedy about a few Saffas who were struck down after thinking their winning streak would last forever.

One unfortunate soul, Bongani Mabuza, won R25 million and went straight to living like a king:

He bought a massive mansion, hired a butler and built a personal bowling alley in his basement. He also invested in his own record label and signed a few rappers, hoping to make even more money.

But, as fate had it, Mabuza’s investments never paid off. He was soon left with just the mansion and butler. The butler eventually quit and exposed his lavish spending habits.

Apparently, Bongani landed up working as a car wash attendant, trying his best to make ends meet.

Then, Thuli Radebe, who won R10m in the lottery, wasted no time splurging on designer clothes, expensive holidays and private jets, lending large sums to loved ones who never paid her back.

After her short-lived rich stint, Thuli was forced to sell her mansion, move back in with her parents, and take a job as a receptionist at a gym.

Let these optimistic binge-spenders be a cautionary tale if you ever suddenly find yourself with deep pockets.

Remind yourself that it is a good idea to chat with expert financial services providers to ensure maximum financial freedom.

Consequence Private Wealth understands the difficulty of knowing in whom to confide, which makes a person put their personal finance off for another day. But the Consequence investors are confident in their ability to show you that understanding where you are going financially can be a very rewarding process.

[source:iol]