That's because it takes time to transition from seeing a pile of cash in terms of all the stuff you can buy with it, to seeing the safe withdrawal that money ca

That's because it takes time to transition from seeing a pile of cash in terms of all the stuff you can buy with it, to seeing the safe withdrawal that money can generate when well invested. The average person who wins $1 million in the lottery sees a new house, car, vacations, maybe a boat. A wealthy person would see it as an extra $30-40k a year in passive income. Of course, people with this mindset generally don't play the lottery, because they do the math. https://www.investopedia.com/terms/s/safe-withdrawal-rate-swr-method.asp https://www.investopedia.com/terms/s/safe-withdrawal-rate-sw... There's no reason why a lottery winner necessarily can't make this transition, but as soon as they win the lottery, it's probably too late to teach them. They're going to quit their job, tell all their friends and family, and eventually the money runs out leaving them with an appetite for consumption they can no longer afford with their meager income potential. That's why it destroys people's lives. On the other hand, if you gradually earn $1 million, or even make risky but calculated long term investments that pay off, you don't wake up one morning to suddenly find yourself with a massive amount of money. You watch your net worth creep up slowly over years or decades. Even if a person like this started by fantasizing about all the stuff they can buy with that much cash, the longer accumulation period gives them time to learn and reflect on what they really want, and therefore are more likely to use this wealth more intelligently. It's the sudden, unexpected windfalls of cash beyond what a person is prepared to handle that are dangerous, not the absolute amount or the person handling it.