Winning the lottery is great. Living close to someone who won the lottery apparently isn’t. Studies show that a spike in a neighbour’s wealth can cause bankruptcy in those around them. Many might try to keep up with their rich neighbour, even if they don’t have the cash themselves.
Assigning value to something is difficult. We usually look at measurable qualities like materials that are used or the time spent to create it. But in a lot of cases, like art, that doesn’t work. Instead, value is estimated by the artist’s renown, which often comes from their networks.
People often think risks like unemployment or health issues are much lower than they might actually be. So when they build a savings plan, they don’t cover those risks, leaving their retirement funds vulnerable. This is often the biggest reason people don’t have as much savings as they’d like.