Does winning the lottery equal happiness?
Winning the lottery is a dream of many people around the globe. In today’s society, happiness is commonly and strongly related to wealth. But does winning the lottery really make a person happy? In short, not always…
There are many lottery winners who regret ever receiving their prize. The man who won $16.2 million but later declared he was happier without money. The $315 million Powerball winner who wishes he had torn his ticket up. The woman who got $6 million after splitting winnings with coworkers and said people she loved were “turning into vampires trying to suck the life” out of her.
However, when the jackpot rolls over, people get into line for a ticket, even though they know it won’t fully fix their problems. Players are convinced that the money would contribute to their happiness and fix any issues.
Going through some literature, let’s look at what science says about the lottery and happiness. A study found no difference in happiness levels between lottery winners and non-winners, but the study was widely criticized due to flaws in methodology and lack of long term replication. So what is the real answer? There are a number of factors that determine whether the lottery will make a person happy…
What factors determine if the lottery makes you happy?
Winning the ‘right’ amount
Robert Pagliarini, a certified financial planner specializing in sudden wealth, says the ideal lotto take-home is $30 million after taxes—really, about a $100 million jackpot, where the cash lump option means you get 60% compared to the annuity. “The $30 million, if invested wisely, would allow you to live on $1 million a year with little risk of ever running out of money,” he wrote in a column for Forbes.
Matter of time
studies have shown that medium-sized lottery wins to take at least 2 years for winners to start enjoying their money. Winners have more stress in the first year, the study found (taxes! paperwork! long-lost cousins!), but less stress in subsequent years.
Keeping anonymous
You’ll have to remember to keep a low profile in those early days and weeks unless you want friends and family trying to collect on any promises you made while you were celebrating your win.
Don’t binge spend
When we receive money outside of our normal income, we are more likely to make irrational decisions with it. If you win the lottery, resist that pressing urge to spend it, because your money is likely to run out before you’ve had a chance to truly enjoy your newfound riches.
In conclusion, money can definitely make you happy but it’s not guaranteed. However, certain measures should be taken to prevent a winner from overspending and being taken advantage of.
