What do lottery winners spend their money on? Surely, when you see in the news that someone lucky hit the jackpot, you must be thinking, ‘What will they do with all that money?’ And I bet the next thing that crosses your mind is all the things you’d do with that cash…
There are so many things we could do with that money, right? From buying a house or a car, traveling the world, to investing in our dreams.
But how do lottery winners actually make these decisions? Let’s uncover together the fascinating stories of how some lucky players have handled their sudden fortune.
The Odds of Winning
Before we dive into how lottery winners spend their fortune, let’s remind ourselves of the odds of winning.
The odds of hitting the Powerball jackpot are 1 in 292 million, while Mega Millions odds are 1 in 302.5 million.
Statistically, you’re more likely to be struck by lightning twice in your life than win a lottery jackpot. But behind these discouraging numbers, there are countless stories across the country of people who managed to win some prize. If you don’t believe us, check out our post on the biggest jackpots won in each state.
Plus, there are always tricks and strategies to improve these odds.
What Do Lottery Winners Spend Their Money On?
Winning the lottery is a dream for many people. It can open the door to a world of possibilities. From buying a house or a car, paying the bills to living in luxury. Let’s find out how lucky winners spend their money and change their lives.
Investing in Properties
One of the most common ways lottery winners spend their money is on real estate.
The prime example of this is Edwin Castro. Castro won the largest Powerball jackpot ever, $2.04 billion, after taxes he took home about $628.5 million. Castro spent over $70 million of his winnings on luxury properties, including a $25.5 million mansion in Hollywood Hills and a $4 million Japanese-inspired house in Altadena, California.
In 2014, Knudsen won $180 million in the California Mega Millions lottery. With part of his winnings ($5.5 million to be exact), he bought a 50-acre house. Additionally, he invested millions in an adjacent 155-acre buffalo ranch, and even more in another neighboring 640-acre property, along with a local grill and tavern. In total, he spent around $11.5 million. The following year, he purchased a house for each of his five children.
New Vehicles
Many lottery winners also invest in luxury vehicles. For instance, Dave and Erica Harrig, winners of a $61 million Nebraska lottery jackpot in 2013. They opted to invest some of their winnings in a collection of vintage cars.
Sharita S, who secured a $60,000 win in Connecticut’s Play4 Night lottery in 2019, revealed plans to use part of her prize to gift her husband a new truck for his birthday, enhancing their family’s transportation options.
And back in 2001, Tom Naylor hit the jackpot with £15.5 million. As a self-proclaimed car enthusiast, he treated himself to seven cars, one for each day of the week. From a Mustang V8 on Mondays to a Land Rover Discovery for Sundays or shopping. Naylor’s garage was a motley collection that even James Bond would admire.
Paying off Debts
Some lottery winners use their winnings to clear off their outstanding debts. Mariah Williams, a Connecticut resident who won $10,064 in 2019, used her lottery winnings to pay for her college tuition.
Grigoriy Shuba, 33, won a $5 million jackpot on a $10 scratch-off lottery ticket in 2018. Shuba told the press that he would use his winnings to pay for his studies and buy a house.
Another winner, Megan Balmer, used her $2 million Powerball prize to pay off her mortgage, student loans, and credit card debt.
Early Retirement
And if you won the lottery, why keep working, right?
David Johnson took home $114 million after taxes from a 2018 Powerball jackpot in New York and hasn’t worked since.
But without a doubt, our favorite story is that of Steve Tran from California. Tran was one of the winners in the 2013 Mega Millions jackpot of $648 million, the seventh-largest Mega Millions jackpot. When he found out, he left a message for his boss saying: “I’m really sorry, boss. I hit the jackpot. I don’t think I’ll be coming in today, tomorrow, or ever.”
Planning Weddings and Honeymoons
Many times, we dream of a fairytale wedding and an unforgettable honeymoon. But the truth is, most of the time, our dreams are more than we can afford. Unless you win the lottery.
One of the most beautiful stories is that of Marion East, a 79-year-old from Maryland, who won $50,000 on a scratch-off lottery ticket. He said the money was for paying some bills, but most importantly, it was to give his wife of over 60 years the honeymoon she had always dreamed of. So, 60 years after their wedding, Marion East and his wife had their honeymoon.
In North Carolina, a couple found luck just before their wedding. Genia Mangum and her fiance were able to have their dream honeymoon thanks to a Powerball ticket. Three days before the wedding, Mangum’s fiance matched 4 white balls and the Powerball, winning $50,000. They told the press, “We were planning to drive to Charleston, but now we’re going to fly to Las Vegas“
Charitable Donations
And there are lottery winners who have turned their good fortune into a force for good by donating their winnings to charity.
Earl Lape, who won over $21 million in a Lotto America drawing in Iowa, donated a portion of his winnings to two children’s hospitals in the state.
Lerynne West, the winner of a $350 million jackpot, donated $500,000 to the Travis Mills Foundation. This is a non-profit organization that helps wounded veterans and their families.
In Greenville, South Carolina, a man won a $150, 000 Powerball prize and chose to donate all of his winnings to charity.
Sharing with Friends and Family
Winning the lottery is a dream come true, but what better way to celebrate than by sharing the happiness and winnings with your loved ones?
Thomas Cook and Joseph Feeney of Wisconsin had made a pact in 1992 that if either of them ever won the Powerball jackpot, they’d split the prize. When Cook won a $22 million jackpot in 2020, he kept his nearly 30-year-old pact with Feeney.
Investing the Money
Finally, many lottery winners take the most responsible route by simply investing their winnings. For instance, David Yax, a New York Powerball winner who won an $80 million jackpot in 2019, planned to first invest and set up a trust for the money.
In May 2005, Brand Duke won a $220 million Powerball jackpot with a cash value of $85 million. Instead of going on a spending spree, Duke invested $45 million in low-risk investments, such as municipal bonds. He put $35 million into high-risk investments, such as energy stocks, and another $1.3 million into the Duke Family Foundation. By 2016, Duke had multiplied his earnings and his fortune had grown to $1 billion.
After winning $112 million from the California Lottery, Cynthia Stafford became a successful entrepreneur and philanthropist. Cynthia invested part of her winnings in real estate and her new company, Queen Neferatri Productions LLC. She currently has an estimated net worth of $10 million.
Summing up…
So now we know what lottery winners spend their money on. As you can see, spending varies depending on the individual and their interests. Multimillion-dollar homes, cars, vacations, or charity work.
Now it’s up to you to tell us: What would you do if you won? How would you spend your winnings? Leave a comment and share your thoughts.