Jim Meyer explains why lottery winners go broke: they don't understand how money works. Save $500 a month for 25 years at 9% annual return and you'll have roughly $560,000. Compound interest and discipline beat a windfall every time.
And I ended up getting the client, but I got the client because I explained to them most lottery winners end up broke. How could you end up broke when you just won a $6 million lottery, an $8 million lottery? Now there's hundreds of millions of dollars, okay? It'd really be tough to get broke on those, but I'm sure they'll find a way to do it because they don't learn how money works. They don't learn simple basic principles. And when you understand that if you save $500 a month for 25 years, at a 9% return, you got $560 grand. I heard that when I was in my 20s. I'm like, I got to get to the point where I can do that.
