Most of us have heard stories of ordinary people becoming multimillionaires overnight. We’re read the rags to riches stories and the riches to rags stories and stood in awe at how this can happen. For those people who play the Lottery week in and week out often dream of winning a jackpot and changing their lives forever.
For the biggest lottery winner in South Africa, his life improved as soon as he found out that he was the winner of a R102 million jackpot in 2011.
The Free-State man officially became the biggest lottery winner in South Africa. After playing PowerBall, his winning ticket scored him the largest jackpot in South African lottery history.
Just to put it in perspective: South African PowerBall jackpots are paid in a tax free lump sum.
Winners also have the option to remain anonymous- which this winner chose to do.
The tragic part of his story is that three years after claiming the title of being the “biggest Lottery winner in South Africa” he lost his fortune after admittedly squandering his money on gambling, alcohol and fast cars.
Since then, there have been other people who’ve become multimillionaires overnight by playing the Lottery.
The most recent winner won a whopping R87 million jackpot.
Why do some lottery winners go broke?
Studies have shown that people who become instant millionaires overnight from poverty tend to lose their money. This is either due to a lack of financial education or reckless spending.
Tips on what to do after winning the lottery:
- Save your money in an account while you decide on an investment plan going forward.
- Take at least 6 months to decide on a plan going forward.
- Get professional advice from a certified financial advisor.
- Pay your debts off.
- Set up a retirement annuity.