“With the present uncertainty regarding our investments, the viability of our jobs, and our financial future in general, I wonder if it might be a good idea to aggressively focus on winning the lottery as a wealth-building strategy. Even though the odds are against us, this might be the only way some of us will ever achieve financial success.”

As strange as it may sound, an investment plan that involves winning the lottery and other games of chance is probably more widely practiced than we may think. I have seen people consistently purchase lottery tickets, interpret their dreams to ‘catch the cash pot’, or bet on horses using disciplined strategies. Some may not consider this activity as gambling, but would prefer to think that they are working to secure a regular income.

Obviously, gambling is not the best route to secure one’s financial future. However, many people still dream of obtaining a wealth windfall. How many times have we heard people say, “If I had a million dollars, I’d never be broke again,” or “If only I could get my hands on a lump sum of money, I could pay off my debts and start a new life.”

It’s widely believed that an instant infusion of money would solve our financial problems forever.

The reality is that getting a large bounty will not guarantee a lifetime of riches. There have been many examples of people who have won millions in the lottery only to see their newfound wealth disappear in a short time. In fact, even if they don’t lose all their money, some of the suddenly-rich really don’t seem to be emotionally better off as a result of their new financial status.

Is there no fairy-tale ending of ‘happy ever after’ for those who strike it rich suddenly?

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Research done by the Money, Meaning, and Choices Institute (MMCI) has revealed that many suddenly-rich people suffer from symptoms associated with the stress of instant wealth. MMCI has even coined the term “Sudden Wealth Syndrome” (SWS) to describe these psychological issues. Whether they have struck it rich from dramatic business success, unexpected inheritance, or lottery winnings, people who are not accustomed to having wealth will probably face similar challenges.

Here are some of the symptoms of SWS, complied from the MMCI studies and from research done by California-based therapists Stephen Goldbart PhD and Joan Di Furia, MFT:

• You feel incapable of making smart decisions about spending and investing your money;
• You impulsively spend money in self-destructive ways;
• You worry that people are envious of you and start to distrust and isolate family and acquaintances;
• You suffer from excessive guilt that prevents you from getting pleasure from your money;
• You feel disconnected from the money because you feel like you don’t really deserve it;
• You become obsessed with tracking the value of your portfolio;
• You suffer from anxiety attacks and paranoid thoughts about your money and your life in general.

According to MMCI, “these symptoms, attitudes, or behaviors usually persist over a noticeable period of time, leading to troubling crises in relation to significant others in intimate and work relations.”

So what can SWS sufferers do to preserve their fortune and enjoy their wealth? Here are some practical strategies to combat these problems:

1.   Curb the urge to spend. Writing in The Law and the Profits, C. Northcote Parkinson said it perfectly: “Expenditures invariably rise to meet and exceed available income.” In other words, the more money you have, the more money you will want to spend. You have to become disciplined in making wise spending decisions.

2.    Practice saying “no.” Whether the requests are coming from friends and family members, charitable organizations, or other assorted seekers of money, you have to develop a strategy of deciding how much of, and with whom your money should be shared.

3.   Learn how to invest. Everyone can learn how to manage and preserve their assets by educating themselves on investment techniques. Keep your money in a safe money market account until you can equip yourself with information about the rewards and risks of investing. Don’t depend solely on the advice of ‘experts’ who may have their own agendas for your money.

4.   Keep yourself ‘real.’ The power brought on by sudden affluence can create negative ego changes in even the nicest person. While the world may revere you for your wealth, keep true to the ideals and principles that you had before you became rich. Remember that your money can be a resource to make a difference to the world.

It might be difficult for those of us who are struggling financially to feel a great amount of sympathy for those suffering from Sudden Wealth Syndrome. However, let’s be aware of these concerns as they could be crippling the lives of people we know. In fact, one day we just might end up joining the ranks of the suddenly rich too!