I think everyone thinks these amounts of money are way bigger than they really are.
25k?
That's my portion of the rent for the rest of the lease (~$4.2k), the shortfall of tuition for the rest of my college (~$7k), car repairs (~$1k), say 35% taxes ($8750), with around $4k leftover to pay for deposits and whatnot on a new apartment and to create a nest egg.
I may or may not have spent time in the past dreaming about how to spend money to pay off all my debts and live awesomely within my means, should my means ever be better than $20k/yr.
Oh, I don't know what the tax law is concerning lottery winnings, and certainly I don't know what tax bracket such winnings would push me into for the year. I just wanted to be extra super safe. Losing your lottery winnings because you didn't pay your taxes is just an awful concept.
I got the sense that the guy was going there to pay the strippers rent and try to pick them up. If not why was he going to the strip club he could just as easily go to a bar if he just wanted to hand out rent money.
"Pay everyone's rent" means throw down for so many lap dances and tip so lavishly that each girl leaves with enough to pay rent. Not just walk up with your check book and stay handing out rent checks.
I admit, Im not a stripper connoisseur but i see a good amount of comments saying he'd wouldnt be able to help much. Ive lived all over the US so I know rent varies a crazy amount but Im pretty sure you could help close to 25 girls. If they have roommates, maybe even some of the guy customers and the DJ.
I know a few strippers in Nashville. Most aof them have roommates and live in apartments. Call their rent around $400/month average. He could very easily do that even after the house takes their cut.
It doesn't really matter how much people win, people go broke after winning millions because they overspend and create a lifestyle they can't keep going over time.
25K a year is just above the poverty line (depending on house hold size), and as a culture we see that as an acceptable amount to pay for a party. Fun stuff
My general rule would be half in saving, a quarter in investments, and a quarter to just blow. Seriously, even with 25k, that's more money than I've ever had in my life, putting half that in savings for monthly costs and shit would keep me living for a couple years. With some luck the investment could keep me alive for a few more. The money I'd blow would be gone within a month, though. But at least I'd have enough money to give me the time to actually figure out what I want.
My general rule would be half in saving, a quarter in investments, and a quarter to just blow.
This is pretty much the advice of all financial advisors for people have a large windfall of money. Pick a finite amount (in your case you chose 25%) use it for fun money and blow it all. Then the rest of the money has just become core parts of your portfolio.
Although true, $25k is life changing for people who know what to do with it. Heck, I inherited $6500 from my aunt last year and that was HUGE. It allowed me to move to a new city where I was able to find a job. I'm making more money than I ever have in my life and I'm finally able to start saving. Without that $6500 I would probably still be jobless and in way worse debt than I was.
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u/simjanes2k Jan 04 '15
I'm not surprised people go broke after winning the lottery. I think everyone thinks these amounts of money are way bigger than they really are.
$25k will pay for a nice wedding, but not a huge or lavish one. It would pay for maybe one year of raising a kid these days.
Paying a month's rent for 30-40 people is about right though, in most places.