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
1st House = 3 million
2nd House =1 million
Furnishings =0.5million (Redo the house to suit taste plus all the expensive furniture)
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