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Man whose family won the lottery describes the strange part about becoming rich overnight

There is a downside to having your life change entirely instantly.

via Canva

A man holding a huge check.

One of the fun parts of buying a lottery ticket is walking out of the liquor store and fantasizing about what you'd do with the winnings. Where would I buy a home with an extra $20 million? To which charities would I donate some of the money? Which friends would I tell I won, and which family members would I keep in the dark?

Studies show that lottery winners experience greater life satisfaction after winning. However, not everyone is equipped to deal with a massive windfall. Around 33% of lottery winners file for bankruptcy 3 to 5 years after their windfall because they overspend their fortune.

Jayden Clarke, who lives in Los Angeles but was originally from Australia, admitted that he came from a family that won the lottery “over a decade ago” when he was 12 years old in a viral TikTok video. “Today, I’m going to do a storytime on how we won the lottery. I had obvious reasons to never speak about this because growing up, whenever anyone did know about it, they definitely had crazy perceptions of us immediately,” Clark begins his video.

@jaydenclark21

We won the lottery… a decade ago #storytime #lottery #lotto #storytimevideos #growingup #lotterywinner #family #realitytv #winning #poortorich #gambletok

The main point was to share that, of course, there are upsides to being in a family that has won millions of dollars; however, some unexpected discomfort creeps into one's life as well. “Even though we grew up still very structured in a way that if we wanted something, we had to have a reason to get it or work towards it in a way, I feel like the experience of winning the lottery makes you feel you have no option to be a normal person,” Clarke admits.

Clarke grew up in a lower-middle-class family struggling to keep their house. After winning the lottery, they moved into an affluent neighborhood with wealthy doctors and priests. However, they didn’t feel comfortable in their new digs and also felt uneasy in the neighborhood they left.

"Growing up, at least in Australia, it felt like when I did become aware of it, we would always make it very clear that we didn't deserve it because we didn't work hard,” Clarke said. “Even growing up we had the most beautiful house, like it was a blueprint for a reality show. Very often, we'd feel out of place between these two realities and just not fitting in anywhere."



He says that his family felt like the “Bogan” lottery family. For the unfamiliar, Bogan is a rude Aussie slang term to refer to boorish, lower-class people. Due to the family’s guilt about their sudden, possibly undeserved wealth, they were very generous with family and friends.

Unlike some lottery winners that blow all their money and then some, the Clarke family was smart with their winnings and is still “comfortable.” Clarke now lives in Los Angeles, where he feels he fits in much better than he did back in Australia. “Not until I came to LA did I feel like I belong and like it was normal,” he said. “Because there's so many crazy people here with crazy lives and realities and journeys. Back home, I often felt like like an outcast.”

Ultimately, Clarke is happy that his family won the lottery, and he’s slowly learned to come to grips with his incredible stroke of luck. “I'm still to this day grateful for how it happened to our family and how it changed our lives. My relationship with the whole like experience is very different now to growing up cause growing up, I did feel like I had to hide it.”

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This Map Reveals The True Value Of $100 In Each State

Your purchasing power can swing by 30% from state to state.

Image by Tax Foundation.

Map represents the value of 100 dollars.

As the cost of living in large cities continues to rise, more and more people are realizing that the value of a dollar in the United States is a very relative concept. For decades, cost of living indices have sought to address and benchmark the inconsistencies in what money will buy, but they are often so specific as to prevent a holistic picture or the ability to "browse" the data based on geographic location.

The Tax Foundation addressed many of these shortcomings using the most recent (2015) Bureau of Economic Analysis data to provide a familiar map of the United States overlaid with the relative value of what $100 is "worth" in each state. Granted, going state-by-state still introduces a fair amount of "smoothing" into the process — $100 will go farther in Los Angeles than in Fresno, for instance — but it does provide insight into where the value lies.

The map may not subvert one's intuitive assumptions, but it nonetheless quantities and presents the cost of living by geography in a brilliantly simple way. For instance, if you're looking for a beach lifestyle but don't want to pay California prices, try Florida, which is about as close to "average" — in terms of purchasing power, anyway — as any state in the Union. If you happen to find yourself in a "Brewster's Millions"-type situation, head to Hawaii, D.C., or New York. You'll burn through your money in no time.

income, money, economics, national average

The Relative Value of $100 in a state.

Image by Tax Foundation.

If you're quite fond of your cash and would prefer to keep it, get to Mississippi, which boasts a 16.1% premium on your cash from the national average.

The Tax Foundation notes that if you're using this map for a practical purpose, bear in mind that incomes also tend to rise in similar fashion, so one could safely assume that wages in these states are roughly inverse to the purchasing power $100 represents.


This article originally appeared seven years ago.

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People share the most hilariously out-of-touch advice given for saving money

'If you think gas is too expensive, just buy an electric car.'

Photo by Andre Taissin on Unsplash

People share out-of-touch money advice.

People have all sorts of advice on saving, and when doling it out, money experts often overlook those living paycheck to paycheck. I saw one of these experts on television recently saying people should have three separate savings accounts for their home expenses—one each for appliances, furniture and home repairs. These in addition to your emergency savings fund and likely your regular savings account. The advice, while acceptable for some, is comical for the rest of us. For even more hilarious money advice, people on Reddit came up with some doozies.

Reddit user u/Salazard260 posed the question "What's the most comically out of touch 'advice' you've been given by someone wealthier?" Most of the responses were eyebrow-raising, and if you've ever been poor—whether it be working poor or below poverty line poor—the advice was hilarious. User blezmalfoy said they were told, "That I need to buy several apartments and rent them out. Unfortunately, he did not tell me where to get money to buy several apartments." You do have to wonder, where does one simply get money to buy multiple apartments? Maybe the money tree our parents told us didn't exist is actually in a forest of other money trees and we just don't know it.

Remember the controversy several years ago when a financial advisor told millennials to stop buying coffees and avocado toast in order to afford purchasing a home? This approach may work for some people who might save a couple hundred dollars by the end of the year, but it's hardly enough to make a downpayment on a new house. It makes you wonder how much this person thinks lattes cost.

Screenshot from Reddit

The Lending Club reported that in June 2022, 61% of Americans were living paycheck to paycheck, and the Census Bureau states that 11.4% of Americans were living in poverty in 2020. People in these two categories don't have any room to save for a rainy day when they're focused on surviving until payday, so the advice given from people far removed from the poverty line can seem a little tone deaf.

In the Reddit thread, a commenter explained advice given to them when they complained of gas prices. "If you think gas is too expensive, just buy an electric car." They lamented, "If I'm unable to pay $50 for a tank of gas, I'm certainly not going to be able to buy a new car, whether it's electric or not."

Another user was told, "Start putting money away for retirement now asap!!" To which the commenter responded, "my brother in christ i cant even put money away for Christmas presents."

Screenshot from Reddit

The one that takes the cake is a commenter who revealed his college roommate said, “When your parents send you your allowance each month, just set a thousand aside each time.” I bet this commenter never thought to do that. Also, how much are wealthy people sending their kids to college with? The way prices are right now, my children will be sent off to college with a box of ramen and a crisp $5 bill.

The thread is full of real-life experience and responses that will make you chuckle, especially if you grew up less wealthy or are currently poor. Starting a business and buying rental property costs money, as does paying off all of your debt to free up money to save. It would seem that most people understand that concept and yet it appears to be lost if you're reading the encounters on Reddit.

Just know, if you truly want to save money, quit your job and take a six-month sabbatical to wait for the perfect idea to come to you. I'm kidding. Don't do that.


This article originally appeared two years ago.

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A story about two pairs of boots illustrates how rich people get richer in ways poor people can't

It’s got nothing to do with bootstraps.

Photo by Maxim Hopman on Unsplash

The Sam Vimes "Boots" Theory of Socioeconomic Unfairness explains one way the rich get richer.

Any time conversations about wealth and poverty come up, people inevitably start talking about boots. The standard phrase that comes up is "pull yourself up by your bootstraps," which is usually shorthand for "work harder and don't ask for or expect help." (The fact that the phrase was originally used sarcastically because pulling oneself up by one's bootstraps is literally, physically impossible is rarely acknowledged, but c'est la vie.)

The idea that people who build wealth do so because they individually work harder than poor people is baked into the American consciousness and wrapped up in the ideal of the American dream. A different take on boots and building wealth, however, paints a more accurate picture of what it takes to get out of poverty.

Author Terry Pratchett is no longer with us, but his writing lives on and is occasionally shared on his official social media accounts. Recently, his Twitter page shared the "Sam Vimes 'Boots' Theory of Socioeconomic Unfairness" from Pratchett's 1993 book "Men At Arms." This boots theory explains that one reason the rich are able to get richer is because they are able to spend less money.

If that sounds confusing, read on:

Pratchett wrote:

"The reason that the rich were so rich, Vimes reasoned, was because they managed to spend less money.

Take boots, for example. He earned thirty-eight dollars a month plus allowances. A really good pair of leather boots cost fifty dollars. But an affordable pair of boots, which were sort of OK for a season or two and then leaked like hell when the cardboard gave out, cost about ten dollars. Those were the kind of boots Vimes always bought, and wore until the soles were so thin that he could tell where he was in Ankh-Morpork on a foggy night by the feel of the cobbles.

But the thing was that good boots lasted for years and years. A man who could afford fifty dollars had a pair of boots that’d still be keeping his feet dry in ten years’ time, while the poor man who could only afford cheap boots would have spent a hundred dollars on boots in the same time and would still have wet feet."

In other words, people who have the money to spend a little more upfront often end up spending less in the long run. A $50 pair of boots that last five years essentially cost you $10 a year. But if you can only afford $10 upfront for a pair of boots that last six months, that's what you buy—and you end up paying twice as much over a five-year period.

There are so many areas in which this principle applies when you're poor. Buying in bulk saves you money over the long run, but you have to be able to afford the bulk cost up front. A reliable car that doesn't require regular repairs will cost more than a beater, but if the beater is all you can afford, that's what you're stuck with. You'll likely spend the same or more over time than if you'd bought a newer/higher quality car, but without the capital (or the credit rating) to begin with, you don't have much choice.

People who can afford larger down payments pay lower interest rates, saving them money both immediately and in the long run. People who can afford to buy more can spend more with credit cards, pay off the balances, build up good credit and qualify for lower interest rate loans.

There are lots of good financial decisions and strategies one can utilize if one has the ability to build up some cash. But if you are living paycheck to paycheck, you can't.

Climbing the financial ladder requires getting to the bottom rung first. Those who started off anywhere on the ladder can make all kinds of pronouncements about how to climb it—good, sound advice that really does work if you're already on the ladder. But for people living in poverty, the bottom rung is just out of reach, and the walls you have to climb to get to it are slippery. It's expensive to be poor.

When people talk about how hard it is to climb out of poverty, this is a big part of what they mean. Ladder-climbing advice is useless if you can't actually get to the ladder. And yet, far too many people decry offering people assistance that might help them reach the ladder so they can start taking advantage of all that great financial advice. Why? Perhaps because they were born somewhere on the ladder—even if it was the bottom rung—and aren't aware that there are people for whom the ladder is out of reach. Or perhaps they're unaware of how expensive it is to be poor and how the costs of poverty keep people stuck in the pit. Hopefully, this theory will help more people understand and sympathize with the reality of being poor.

Money makes money, but having money also saves you money. The more money you have, the more wealth you're able to build not only because you have extra money to save, but also because you buy higher quality things that last, therefore spending less in the long run. (There's also the reality that the uber-wealthy will pay $5,000 for shoes they'll only wear a few times, but that's a whole other kind of boots story.)

Thanks, Terry Pratchett, for the simple explanation.


This story originally appeared two years ago.

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