I read with amazement a story in my local newspaper this morning. It was a couple in their early 30's from Perth, Western Australia who won AUD $ 793,151.87.
Their lotto dream was only realized two years ago. Happy people huh?
OK. Nothing too great about that - until now. Reading on I was shocked to learn that this story is news now because, despite their huge windfall, this couple had never stopped claiming social security benefits. Greedy huh?
That welfare money is intended to be available for disadvantaged people who are in financial difficulties. In essence, the "survival" money.
But the story gets worse, much worse ...
This couple spent all that money in just seven weeks! Gone. Disappeared. Seven weeks! It hardly seems possible. So, what does that tell you?
The first thing I noticed was how utterly irresponsible this couple. How do each week to spend $ 113,307.41 for seven weeks? I understand that. Struggling
What if this couple had just spent with "fun" the $ 93,151.87 and put the $ 700,000 in an interest-bearing term deposit for three months at 6.00% interest, while they got a decent financial advice? At the end of the three months they would have earned another $ 10,500 to play (less tax, of course).
So many stories abound like this - people are suddenly in possession of a large inheritance or win a lottery without financial skills and zap! Like these two, it's gone. How would you have handled?
For anyone on basic financial skills "The Richest Man in Babylon" by George S Clason learning is a good start. These people had taken the trouble to such a book, they would still have to read. A significant portion of that money Maybe they have even more. For it is they have nothing to show, and there is a strong possibility of either jail or high fines for defrauding the government.
It pays to educate yourself.
This article comes with reprint rights providing no changes are made and the resource box accompanies it.
Gary Simpson is the author of eight books covering a wide range of topics such as self esteem, affirmations, self defense, finance and much more. His articles appear all over the web. Email Gary's is Click here to receive "The Power of Choice." To his Motivation & Self Esteem for Success website where you are "Zenspirational Thoughts" plus an immediate FREE copy of his highly acclaimed, life-changing e-book
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