Home > Money Matters > Zimbabwean Broke after winning SA lotto- How to spend $1million in two days

Zimbabwean Broke after winning SA lotto- How to spend $1million in two days

Batsirai Mupfawi a ZIMBABWEAN man became South Africa’s first mega-jackpot lottery winner a decade ago. After spending R5 on a lotto ticket, he scooped the R14 million (about US$2, 1 million) prize. At the time, he worked as a chauffeur and his wish was to finish his matric. Ten years later, he still hasn’t finished his matric, but the unfortunate part of this story is that he has gone broke and has accumulated a string of debts. This is quite a common phenomenon, lottery winners often go broke. Yesterday Powerball had a jackpot of R90 million and all eyes are on the ‘ball’ tonight. Chances are whoever wins the money will go broke like most of the winners do. Most lottery players are poor or middle class people, working for a living or selling their benefit s to buy a ticket. Most will never earn a million in their lives and when they win a jackpot their whole world literally turns upside down. They say that if you give a fool a million dollars the million will go down to his level. A fool and his money are soon parted. This may be because they have never had any financial training, may have never budgeted in their lives and they think that the money is on tap and will continue to pour out till kingdom come. A financial consultant told of how people can spend millions in days. To the normal person this may seem unreal but imagine, you decided to go on a spending spree.

I was just trying to do the maths when I realized that 14 million can fly past you in a breeze. If you started off by buying a Porsche you’d have spend more than10% of your winnings, a R 5mill house is a third of your win, and you’ve already spent half your winnings on two things. To make your jackpot last, you’d need to really think like a normal person and not try to be rich because if you tried being rich, you’d be poor in no time. The lifestyles of the rich and famous, cost good money. A week in Las Vegas would cost you roughly a 1million and a Porsche 1.7 million. But to be a bona fide rich guy, you’d need to have a Ferrari parked next to the Porsche. In two days you’d be broke.

Take a look at this well thought out budget

Holiday =0.5million

1st House = 3 million

2nd House =1 million

Furnishings =0.5million (Redo the house to suit taste plus all the expensive furniture)

Cars =1million

Loans to friends and family =1million (loan to Uncle Ben for his business 200 000+ 10X50 000+ 10X30 000)

House for Mum and dad =0.5million

House for in laws =0.5million

Make over =0.5million (a bit of surgery here and there, shopping and spoiling yourself)

INVESTMENT (4 TRUCKS) =6million

Working Capital =2million

Savings =4million (Out of which you will be surviving up until business is up and running)

Total =R20.5 MILLION

Over a five year period the business has collapsed and you have spent your savings plus working capital. The houses need to be maintained and bills paid. The cars need to be maintained. Coupled with the expensive lifestyle you are now accustomed to, it is no surprise the money just seems to disappear.

If a person isn’t good with their money and they earn R350, 000 per year, winning millions isn’t going to miraculously make them prudent. In fact it will bring out what is already inside them and magnify it.

Money makes you more of what you already are.

If you a fool, it makes you more foolish.

If you are generous, it makes you more generous.

If you are a smarty pants, it makes you more of a smarty pants.

If you win a jackpot, go for counseling and maybe put your money away somewhere safe where no one can find it and get a financial adviser to advise you on how to use your money. Spend wisely. Ever noticed that the mega rich guys don’t go around throwing their money everywhere. If you were to choose a rich guy from a line up, you’d probably pick on the guy who is stone broke. Changing a lifestyle is expensive. The cars, houses, holiday homes all need maintenance. Remember that IT IS EASY TO OBTAIN BUT DIFFICULT TO MAINTAIN. The maintenance of all the new toys and the lifestyle is what gets people in the dump. Don’t believe the hype Those people who come knocking on your door aren’t really your best friends, they are just here to milk the money. Once the money is gone, they will disappear as quickly as they came.

I hear that when you win the lottery you will receive hundreds of calls from strangers with sorry stories. People you once knew will start coming out of the woodwork. If you are African like me, the whole village will be knocking on your door. It may seem like giving someone R20 000 is a drop in the ocean but a little bit over here and a little there and before you know it, it’s all gone. Careful with those business ideas Friends and family will approach you with investments and business proposals that seem solid. You yourself will have ideas about businesses you want to start. Mr. Mupfawi started a transport business and now he is in debt. Working for someone is a whole different ball game from actually running a business. If you are not business savvy don’t go there. The thing is everyone thinks they are business savvy but the reality is most businesses fail within a year after start up. This means your money has just gone down the drain.

My verdict is, if whether you play the lottery or not, always manage your money or learn how to manage your money better. If you take care of the pennies the pounds will take care of themselves. Turn your pennies around twice before spending them and remember money doesn’t grow on trees

About these ads
Categories: Money Matters
  1. kanero
    November 24, 2011 at 11:54 am

    we ‘ve to use money wisely

  2. Shane
    November 24, 2011 at 1:57 pm

    Dear Sir

    This is an excellent article and excellent advice to all who read it. We all wish for those millions, but if we can’t manage our own finances properly, how on earth would we be able to manage millions.

    • November 24, 2011 at 3:16 pm

      Thanks Shane. If we can be faithful with the little we’ll have better fortune with the millions.

  3. licito
    January 23, 2012 at 3:57 pm

    Its all true depending on each ones backgroung, I believe that if the little made today is invested in liquid assets tomorrow it should come back double. Family comes 1st but it shouldn’t be in form of loans maybe an education plan with your cousins and nefiews…

    • January 24, 2012 at 10:49 am

      @licito, I agree. Most of us are not taught how to use money and are never prepared for the eventuality that we land on a gold mine. I like the idea of loans and edu plans.

  4. February 7, 2012 at 6:59 pm

    Magnificent issues altogether, you simply gained a new reader.

  5. nyasha
    February 16, 2012 at 5:45 pm

    This goes to whoever wrote this article. Just for next time’s sake, I would suggest that you get your facts right before you go and publish what you do not know. You probably writing basing your story on wat you heard from peeps out there who doesn’t even know the guy

    • February 17, 2012 at 8:08 am

      @nyasha, you may be right. I actually did a bit of research on it before I wrote about him. But please feel free to tell us the facts. We only have one side of the story, the side told by all the papers and all the people who know him. But with every story, there is always my/our side, his/your side and the truth.

  6. shepherd
    March 28, 2012 at 6:27 am

    what comes up easily goes down easily

  7. James
    May 2, 2012 at 6:03 pm

    Tjo!!! ho rough nou… Really money brings about whats already there “magnified”… Love it!!!

  8. May 16, 2012 at 6:56 pm

    Hi. I want to ask if aperson or none sa who is refugee in sa is he allowed to claim prize

  9. Mustafa
    October 16, 2012 at 2:52 pm

    Hie i want a true lotto

  10. Mustafa
    December 19, 2012 at 6:51 am

    Hie watsup morng

  11. Hubert
    January 3, 2013 at 8:06 am

    Very true! If I won the lottery I would give it to my mother to run! I am a very successful sales executive and cant make it through the month without my mothers help!

    • January 3, 2013 at 9:08 am

      So you would trust your mum with millions.. What if all that money made her self destruct…

  12. Bobby shabangu
    February 12, 2014 at 4:47 pm

    Wow this article alone is an eye opener to me , well written thanx to the author!

  13. Chikwama
    April 16, 2014 at 5:10 pm

    all ruling parties in Africa must read this article,at independence each of the ruling parties were rich,a few years down the line they are relying on taxing the poor for survival

  14. June 19, 2014 at 7:23 am

    Thanx very much for that advice ,well articulated

  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Air Transport Research Institute SA Publications

Published papers and technical articles about African air transport

SmallBiz Counsel Daily

Sharing those daily lessons in business...

Zimdev

Don't ask what your country can do for you, ask what you can do for your country.

Barbed Hope

"If you are silent about your pain, they’ll kill you and say you enjoyed it."

critical logistics

thinking about the technopolitics of global logistics

An Ordinary Chick Doing Extraordinary Travelling

OISE Bristol

Creating connections in English

I'm not weird, I'm just a limited edition!

Welcome to the Republic of Sunshyne. A state dedicated to the pursuit of awesomeness!

What Happened to the Portcullis?

An independent view on developments affecting Customs & Trade in sub-Saharan Africa

usgreencardlottery123

Just another WordPress.com site

Weekly Photo Challenge

I do Book Reviews ♥ FIND ME HERE: http://getreadingnow.org

Don't ask what your country can do for you, ask what you can do for your country.

Follow

Get every new post delivered to your Inbox.

Join 366 other followers

%d bloggers like this: