66 East Main Street, 3rd Floor Little Falls, NJ 07424

Correlation Between Neighbor Winning Lottery and Bankruptcy

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I read an interesting article recently in the American Bankruptcy Institute News.   In Canada, when a person in a small neighborhood wins the lottery,  more subsequent bankruptcies occur  from others in the neighborhood.

Keeping up with the lottery winners causes neighbors to put more money in conspicuous items.  They do not upgrade the inside of their homes but put money into the  exterior of their homes and cars.   In addition, the neighbors tend to put more money into high-risk investments, such as stocks.

While trying to keep up with their winning lottery neighbors, they become motivated to get rich quick.   However, those short-term hopes of hitting it big lead them to bankruptcy.

Look out what you do when your neighbor hits the lottery.  However, it appears this reference is only made in Canada.