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lottery win bankrupts the NEIGHBORS
Old 06-24-2018, 10:23 AM   #1
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lottery win bankrupts the NEIGHBORS

I read the oblivious investor blog regularly. Maybe others do but I'm sure not all of you do. I found this study referenced there to be pretty amazing (but not that surprising) https://www.bloomberg.com/news/artic...to-go-bankrupt
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A recent study from the Federal Reserve Bank of Philadelphia looked at the effect of (small-to-medium-size) lottery winnings on the neighbors of the winners. They found that, on average, neighbors of the winners increase their spending and are more likely to become bankrupt the larger the size of the winnings. Its hard to ignore the spending of the people around you.

Keeping Up With the Joneses: Neighbors of Lottery Winners Are More Likely to Go Bankrupt from Peter Coy
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Old 06-24-2018, 10:29 AM   #2
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The cost of trying to keep up with the lucky Jones family.

-BB
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Old 06-24-2018, 10:29 AM   #3
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Old 06-24-2018, 10:35 AM   #4
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Originally Posted by fosterscik View Post
I read the oblivious investor blog regularly. Maybe others do but I'm sure not all of you do. I found this study referenced there to be pretty amazing (but not that surprising) https://www.bloomberg.com/news/artic...to-go-bankrupt
Wow! This is so interesting!! The psychology of people! I befriended someone who was a big spender on fashion items, and I started getting an urge to spend more on clothing. (And I normally couldn't care less about clothing!) Or a friend who just bought a brand new car (and I don't even need a new car!) Good thing I am level-headed enough to know what I need, as well as what I can afford.
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Old 06-24-2018, 10:37 AM   #5
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That's pretty funny! But a real part of human nature too.
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Old 06-24-2018, 10:44 AM   #6
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Old 06-24-2018, 10:45 AM   #7
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Wow! This is so interesting!! The psychology of people! I befriended someone who was a big spender on fashion items, and I started getting an urge to spend more on clothing. (And I normally couldn't care less about clothing!) Or a friend who just bought a brand new car (and I don't even need a new car!) Good thing I am level-headed enough to know what I need, as well as what I can afford.
So I need to befriend more gorgeous great looking hunks
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Old 06-24-2018, 11:11 AM   #8
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Yes Jonesing seems to become a real addicition with time.
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Old 06-24-2018, 12:43 PM   #9
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My brother once told me that when it comes to acting independently with minimal influence from others it really helps to have a pretty low opinion of anyone who is not you. It sure will not help you win friends, but I think it is likely true that it will be a block to copycatting. Who wants to copy someone that he thinks is an idiot?
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Old 06-24-2018, 12:46 PM   #10
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Yeah, I totally don't get this at all. I guess part of it was growing up in a community of "closet millionaires".... people who I knew were very wealthy but to look at their lifestyle, homes, cars, etc appeared to be upper-middle class.... and a lot of it rubbed off on me.
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Old 06-24-2018, 12:53 PM   #11
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So I need to befriend more gorgeous great looking hunks
Would you like to PM me?
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Old 06-24-2018, 01:02 PM   #12
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My takeaway on what they are saying is: One of the things I can do to help my neighbor's financial stability is to not play the lottery. OK. I can do that. Your welcome!
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Old 06-24-2018, 01:39 PM   #13
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Well, you can play, just don't win
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Old 06-24-2018, 02:24 PM   #14
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Well, you can play, just don't win
I learned that I'm very good at that!
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Old 06-24-2018, 03:03 PM   #15
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I don't have any neighbors named Jones, so I'm not worried.
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Old 06-24-2018, 03:06 PM   #16
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Originally Posted by pb4uski View Post
Yeah, I totally don't get this at all. I guess part of it was growing up in a community of "closet millionaires".... people who I knew were very wealthy but to look at their lifestyle, homes, cars, etc appeared to be upper-middle class.... and a lot of it rubbed off on me.
Summed up The Millionaire Next Door. (book)
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Old 06-24-2018, 04:29 PM   #17
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Summed up The Millionaire Next Door. (book)
I just thought of a new book idea: The bankruptcy next door! It can profile people that lived it up, living high on the hog...only to suddenly declare bankruptcy out of the blue (or, at least, out of the blue to those that just saw the expensive trappings of their lifestyle).
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Old 06-25-2018, 10:56 AM   #18
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Old 06-25-2018, 11:21 AM   #19
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The bankruptcy next door was right next door. Yes, right next to me, the house next door. The housing crash resulted in it being vacant for a year and a half with a "bank owned" sign in the front yard.

It was not the only one on the street i live on either, but it was right next door. Eventually the house across the street from me went that way too, but not for as long.
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Old 06-25-2018, 11:38 AM   #20
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Reading "Blow that Dough" thread may bankrupt me. ... Just kidding, RobbieB.
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