How to win the lottery happily - NYTimes & ERE "Adjustment"

[almostthere]

http://www.nytimes.com/2014/05/27/scien ... .html?_r=0

I was struck by the term "adjustment problems" and the fact that winners are not happier in the first year but tend to see their psychological well being increase over the next two years.

I am wondering if there is some parallel with the phase of ERE where we leave our jobs to live off our wealth. The first six months were rough for me, but I now see my general contentment rising.

[prosaic]

I think the issue is the rate of change. My family has experienced an extraordinary 18 months or so as our income has gone from perfectly abundant to overwhelmingly huge when some writing I do took off (royalty based, so I make money per sale).

The stress from the massive spike and the economic/social/professional changes all came on at once, which means that the rate of change has been breathtaking. I'm not complaining about the money, mind you -- but the mental adjustments and avalanche of decisions that come with the change are complex and hard to explain unless you experience it directly.

[chicago81]

This is what I consider to be the key-takeaway from the article:

“The problem with a big lottery win,” Dr. Norton says, “is that it adds a group of people to your life that you don’t want to be in contact with, and it disrupts the relationships with the people you do want to be in contact with.”

[Dragline]

Yes, that's why I think the people who choose to be anonymous when they win are the smartest. If people (relatives) know you have a windfall, they are likely to show up at your door.

The other problem may be a status issue -- lottery winners are considered schlubs, or lucky people with no talent at best. They may have formed their identities through their work or relationships, which won't be the same anymore. Many people have difficulty reinventing themselves other than becoming uber-consumers.

[USAF Sgt]

The stress from the massive spike and the economic/social/professional changes all came on at once, which means that the rate of change has been breathtaking...the mental adjustments and avalanche of decisions that come with the change are complex and hard to explain unless you experience it directly.

I experienced this when I joined the military. I joined at age 26, and up to that point had never made more than 10k a year. It was very easy for me to be frugal through the "poor college kid" years because there was no other option. I didn't have the money to waste, and I didn't have access to credit or my parents' bank account.

Suddenly, upon entering the military, I was making a very generous salary, and learning to manage it was very hard to do. When you've only got so much, it only gets allocated so many ways, and there aren't many decisions to be made about it. Now suddenly you have a surplus, and decisions have to be made. "I've lived without tv for so long, and now, for just a hundred bucks a month I can have 500 channels."

Luckily, I kept my wits about me. I spent some money repairing, replacing, and upkeeping things that had been neglected when I couldn't afford to do otherwise, and now I live the same lifestyle I did before, with substantially greater savings. It took a few months of stress and decisions, but eventually, I too found happiness and contentment.

[GandK]

@USAF Sgt:

That was my experience too, also in the USAF. Got my head screwed on straight after two years and ended my four year enlistment with enough cash to buy a car for myself outright, pay for most of my wedding (parents chipped in), and fund the first six months of living expenses for myself and my new hubby while we got settled into our new civilian jobs.

Unfortunately, at that time (1997, at age 23), retirement was not on my radar in any way. I didn't spend all the cash frivolously, but I did spend it all.