We have all heard the stories. Someone wins the lottery. Their money problems are solved. Now they have the money to do all of those things they couldn't afford before. They feel great.
Money is plentiful, but so are their plans to spend it.
Within a few years, however, their finances are not looking so rosy anymore. The money is gone, along with any money they had previously. They are facing financial difficulty again, perhaps even bankruptcy. This sad story has played out several times for lottery winners who did not plan the use of their windfall earnings. Any financial planner would have told them, and common sense agrees, that when you gain a windfall, the last thing you ought to do is rush out and spend it.