The other week a group of six tradies won the Powerball enriching each of their lives by over $2.7million. As they declared they’d down their tools and never work again I couldn’t help but do some calculations as to if they could do just that – ‘Never work again’.

Every now and then we hear stories of people who come into money; more commonly it is through inheritance rather than a winning and I dread to say that the mind set of this new found boost to finances may be more similar than we care to think. We have all heard the stories of people coming into a great deal of money, squandering it and having nothing left after 18 months.

Looking at someone in their twenties which has decades of life ahead of them, $2.7 million may create a modest lifestyle if they choose never to work again. There are obviously many scenarios to consider in this situation so let’s have a look at a few:

Buying a median house in Melbourne will set them back approximately $840,000. Along with a median car price of $40,000. They would have $1,820,000 to invest and if they lived off $100,000 per annum the return from a well managed portfolio should see them with at the very least the initial capital at retirement age taking into consideration CPI. This type of scenario should also give them enough income throughout the years to live a lifestyle where should they have a family they would be able to send children to a private school and have an annual family holiday.

Let’s look at another scenario – The young men may think that working isn’t so bad, but they may want to develop the skills to run the show. It’s not unusual for people to work in an environment where the employee thinks they can do it better. What better opportunity to put your money where your mouth is; which is exactly what entrepreneurs do all the time. In this scenario they may invest some money in educating themselves on good business practices and buying or starting a business. Along with networking with similar minded business people and finding a mentor this scenario can be profitable both financially and personally.

The third scenario is the one that makes me cringe. They could of course decide to buy the $2 million dollar dream house with pool and tennis court, a $200,000 Maserati, take a world trip and shout for countless beers at the pub. Sadly within a short period of time they will struggle to maintain the lifestyle to which they haven’t even had time to become accustomed to.

The question often arises, does someone really know the value of money if they haven’t earned it? Maybe this in itself is the reason why so many people who come into money find themselves a couple of years later in the same scenario they were before they had the windfall.

Life can certainly be a dream with some professionals understanding your goals and offering you advice to achieve a desired lifestyle. So, as my neighbour’s daughter shouts out “It’s my luck day Mum, I found two dollars on the floor”; I can’t help but smile and wonder what she’ll do with it.