Everyone in America is closely watching the record-high $1.4 billion lottery, including billionaire investor Mark Cuban. He gave some very honest advice to the person(s) who may win the cash during Wednesday night’s PowerBall drawing.
Cuban, who’s worth approximately twice as much as the record-high winnings, shared some wisdom at the request of Business Insider. Cuban recognized that the lottery winner likely won’t know what to do with all that money and gave the following suggestion.
“If you weren’t happy yesterday you won’t be happy tomorrow. It’s money. It’s not happiness. If you were happy yesterday, you are going to be a lot happier tomorrow. It’s money. Life gets easier when you don’t have to worry about the bills.”
He anticipated the common school of thought from those who believe that money is all they need to be happy. Too many people have the mantra, “I’ll be happy when…” or “I can only imagine how happy I would be if I had a billion in the bank.” However, coming from a billionaire, it’s a great reminder that happiness can be achieved anywhere. It doesn’t happen overnight with a bank full of cash.
Cuban also discussed with the publisher the importance of not spending all the money at once.
“You don’t become a smart investor when you win the lottery,” he said. “Don’t make investments. You can put it in the bank and live comfortably. Forever. You will sleep a lot better knowing you won’t lose money.”
It’s surprising to hear the Shark Tank star say this. You would think his advice would be to invest the money immediately to triple the money and live comfortably for the rest of your life. However, he has a point. Investing isn’t something you can learn overnight. It’s risky, especially with how volatile the market is right now. Investing as a person who knows nothing about investing would mean potentially losing everything, which would be a sad way to go out after winning the largest lottery jackpot in history.
Finally, Mark Cuban anticipated the awkwardness that comes between family and friends after you come into that much money. Those you’re related to and your so-called friends will begin coming out of the woodwork, asking for money and aid.
“Tell all your friends and relatives no,” Cuban bluntly stated. They will ask. Tell them no. If you are close to them, you already know who needs help and what they need. Feel free to help SOME, but talk to your accountant before you do anything and remember this, no one needs one million dollars for anything. No one needs 100k for anything. Anyone who asks is not your friend.”
This financial advice has been echoed by other financial advisors, particularly Dave Ramsey in his book Total Money Makeover. Ramsey addresses the common desire to give out loans to family members. It seems like your doing them a favor, giving out a loan that they can pay back with no interest, but Ramsey points out how much trouble that can get you in the long run.
“It is fine to give money to friends in need if you have it, [but] loaning them money will mess up relationships.”
These two pieces of advice from two billionaire financial geniuses will be priceless for the lottery winner, whoever that may be. The question of what to do with that much money is always a difficult one to answer, but now there’s a good start.
Cuban finished off his statement with one final piece of advice.
“Be nice. No one like a mean billionaire.”
Mark Cuban’s statement is one to remember, and for the sake of everyone, let’s hope the $1.4 billion lottery winner(s) remembers it.
[Photo by Neilson Barnard/Getty Images]