When you win your favorite casino games, the rush fills your blood with adrenaline and your mind with ideas about what you’ll get to do with all of that glorious money. Unfortunately, there are many pitfalls involved when it comes to spending, investing, or gifting casino winnings.
Here are 5 common ways people lose their casino winnings.
You blow your winnings on things that provide immediate gratification. It’s no surprise that there are people and businesses that are eager to help you spend your money on things you don’t really need but cannot live without…in that moment. Before you run off and buy that Maserati, meet with a financial advisor to make sure that your money doesn’t get wasted on women named Candy or horses named Santa Claus is Coming to Town.
For every person offering true congratulations, there are two other people who are looking for ways to scam you out of your money. When you win big, be on the lookout for people who are asking you to donate to charity, offering to sell you something “off the books” or who say they have an “investment opportunity” for you. If it seems too good to be true…walk away.
Out of the Woodwork
Funny how family seems to do just fine without you for 20 years, but suddenly they are stopping by to visit once they’ve discovered your windfall. A good rule of thumb for giving money to relatives or old friends is, if you haven’t spoken to them in over 2 years, haven’t seen them in over 5, you owe them nothing and should probably show them the door.
You can bet your bottom dollar that as soon as you win money, the credit card companies will be coming to collect on the debt you owe. Should you avoid them? No. If you honestly owe them money, talk with them about payment plans that don’t involve giving them everything you’ve won.
Despite best efforts, your winnings will be reported to the IRS which means that when tax time comes around, you’ll have to give account of what you’ve won. Setting aside a percentage of your winnings in a high yield savings account will allow you to pay those taxes without sweating it.
These 5 common methods of winnings loss are just a few of the many ways people have lost their casino winnings. Can you think of any other ways you can lose your casino winnings? How have you lost the money you’ve won?