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lottery win bankrupts the NEIGHBORS
06-24-2018, 10:23 AM
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#1
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Recycles dryer sheets
Join Date: Jun 2013
Location: Chattanooga
Posts: 499
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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
 Quote:
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. It’s 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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Currently SKI-ing (spending the Kids' Inheritance)
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06-24-2018, 10:29 AM
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#2
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Thinks s/he gets paid by the post
Join Date: Feb 2004
Location: Switzerland
Posts: 1,047
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The cost of trying to keep up with the lucky Jones family.
-BB
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FIREd, April 1, 2015. My Retirement Benefits Package includes: 6 months vacation, twice a year.
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06-24-2018, 10:29 AM
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#3
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: May 2011
Posts: 8,368
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Wait up.....I seem to have misplaced The World's Smallest Violin....gimmee a second willya?
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"Exit, pursued by a bear."
The Winter's Tale, William Shakespeare
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06-24-2018, 10:35 AM
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#4
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Give me a museum and I'll fill it. (Picasso)
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Join Date: May 2008
Posts: 5,214
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Quote:
Originally Posted by fosterscik
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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.
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06-24-2018, 10:37 AM
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#5
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Mar 2016
Posts: 8,968
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That's pretty funny! But a real part of human nature too.
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06-24-2018, 10:44 AM
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#6
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Recycles dryer sheets
Join Date: Feb 2018
Posts: 98
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"Spending money you don't have, on things you don't need, to impress people you don't know"
- Dave Ramsey
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06-24-2018, 10:45 AM
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#7
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2014
Location: Spending the Kids Inheritance and living in Chicago
Posts: 17,097
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Quote:
Originally Posted by tmm99
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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So I need to befriend more gorgeous great looking hunks 
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Fortune favors the prepared mind. ... Louis Pasteur
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06-24-2018, 11:11 AM
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#8
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Jul 2006
Location: Pacific latitude 20/49
Posts: 7,677
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Yes Jonesing seems to become a real addicition with time.
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For the fun of it...Keith
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06-24-2018, 12:43 PM
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#9
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
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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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"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
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06-24-2018, 12:46 PM
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#10
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,373
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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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If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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06-24-2018, 12:53 PM
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#11
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Full time employment: Posting here.
Join Date: Sep 2007
Location: mpls, mn
Posts: 770
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Would you like to PM me? 
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06-24-2018, 01:02 PM
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#12
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Thinks s/he gets paid by the post
Join Date: Aug 2014
Location: Chicago West Burbs
Posts: 3,019
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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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06-24-2018, 01:39 PM
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#13
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Thinks s/he gets paid by the post
Join Date: May 2014
Location: Utrecht
Posts: 2,650
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Well, you can play, just don't win 
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06-24-2018, 02:24 PM
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#14
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Moderator
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,340
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I learned that I'm very good at that! 
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When I was a kid I wanted to be older. This is not what I expected.
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06-24-2018, 03:03 PM
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#15
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Aug 2013
Location: Texas
Posts: 10,935
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I don't have any neighbors named Jones, so I'm not worried.
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06-24-2018, 03:06 PM
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#16
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Aug 2013
Location: Texas
Posts: 10,935
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Quote:
Originally Posted by pb4uski
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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Summed up The Millionaire Next Door. (book)
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06-24-2018, 04:29 PM
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#17
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Thinks s/he gets paid by the post
Join Date: Aug 2004
Location: St. Louis
Posts: 2,179
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Quote:
Originally Posted by Car-Guy
Summed up The Millionaire Next Door. (book)
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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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Dryer sheets Schmyer sheets
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06-25-2018, 10:56 AM
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#18
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Give me a museum and I'll fill it. (Picasso)
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Join Date: May 2005
Location: Lawn chair in Texas
Posts: 14,183
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If I win the lotto, I’m moving anyway...
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Have Funds, Will Retire
...not doing anything of true substance...
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06-25-2018, 11:21 AM
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#19
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Mar 2016
Posts: 8,968
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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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06-25-2018, 11:38 AM
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#20
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Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Join Date: Sep 2012
Posts: 11,702
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Reading "Blow that Dough" thread may bankrupt me. ... Just kidding, RobbieB. 
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