Have you ever considered what to do if you win the lottery? Even if we do not admit, most of us play the lottery or have played the lottery at some point. This is why you will find people on the internet searching for things like “how to win the lottery tips.”
Winning the lottery provides people with an opportunity of earning a substantial amount of money overnight. As a result, it is an opportunity that if it presented itself, no one would say no to it.
However, even for the people that are lucky enough to win the lottery, they end up making some mistakes along the way hence negating the benefits that would have accrued.
Do you know what to do when you win the lottery?
Research shows that those who win lotteries possibly become broke and even depressed when they fail to use their money wisely.
To, therefore, ensure you do not end up unhappy and broke after winning the lottery, this article reviews ways that would help you not squander winnings within no time.
There are people who play lotteries for the fun of it while others do it for financial reasons and with a hope of winning.
However, not many who win are well equipped to handle the winnings. There are many who win, and within a short time, they have nothing. Many end up bankrupt due to lack of information.
That is why this article is here for you. Here to equip you with facts and informative content on how to ensure you do not end up bankrupt after a lottery win.
They are tips on what to do if you win the lottery.
1. Maintain Silence as You Plan
Upon winning a lottery, you are tempted to scream out loud and let those around you know. However, it is important that you consider maintaining your calm.
According to David G. Niggel, letting many people know opens you to unscrupulous people and unentitled dependents from all over.
When you keep the information to yourself, you are able to calm yourself and think about the next step.
You could also take advantage of the silent time to seek professional advice on how to go about things.
2. Ensure You Sign the Winning Lottery Ticket
It is important that you sign the winning lottery ticket.
This ticket acts as an ownership document, and the one who signs this ticket is able to claim the specific lottery winnings.
This is to mean that if you win a lottery and happen to lose the winning lottery ticket without signing it, the person who finds it can legally claim the lottery winnings.
Do you see why it is important to know what to do if you win the lottery?
3. Work with Professionals
It is highly advisable that you seek professional help as soon as you win the lottery so that you are able to have sufficient knowledge on how to handle the winnings.
Therefore, who is a good professional to hire?
It is advised that you hire the services of a ‘fee-only’ financial adviser to take care of investing and planning of the winnings.
A fee-only financial adviser is good because, unlike other financial advisers, he or she will charge you a flat fee for the services and is obliged to work for your good and not for his or her own benefit.
You would also require a professional CPA who will take care of your taxation procedures as well as good legal counsel to help you handle scams and other legal processes.
As you outsource these professionals, be sure to go for professionals who have clear-cut fee schedules that show how much you will be paying for the professional services.
4. Make it Hard for People to Contact You
When one wins a lottery and is readily available for TV interviews, reality shows, and more, the situation turns hectic and becomes unbearable.
It is, therefore, advisable that you make it hard for people to contact you.
If possible, change your mobile number and issue the new number to a small circle of close family members and friends.
You could also delete social media platforms and create new ones or stay off social media, as well as create a new mailing address.
With these measures, you become hard to contact and avoid temptations to meet people and make yourself vulnerable to bad advice and untrustworthy dependents after winning the lottery.
These measures may seem extreme, but it is important that you control the people who contact you at such a time. I hope you are taking notes on what to do if you win the lottery.
5. Make a Decision Whether to Take Lump Sum or Annuities
The decision on how to access your funds after a lottery win is important to you and your team.
You could decide to take up one lump sum of the winnings or decide to have the winnings wired to you each year over time.
Once you settle for having long-term investments, you should ensure careful and well thought out planning. With proper planning, you may have long-term investments that later yield more than the acquired winnings.
You should consider having an annual layout to help monitor your earnings and ascertain that you keep having cash flow all through. This helps to keep you from overspending.
6. Maintain Living within Your Means
You probably now have so much money in your bank account, so much more than you have ever imagined after a lottery win.
With this, you will be tempted to overspend for various reasons.
You may want to quickly use the money to buy everything you have never had or use the money quickly in fear that it may be taken away.
Keep calm and avoid such thoughts. Follow good lottery winnings management steps and ensure your money is safe.
With assured safety, ensure you avoid overspending and live life within your means. Also, ensure to secure your winnings by following tried and tested financial management tips and guidelines.
7. Stick to Your Job
I know this will come as a weird tip on what to do if you win the lottery.
When most of us imagine about winning a lottery, the thought of abandoning our jobs and our bosses will cross the mind.
According to research carried out, most say that they would immediately quit their jobs upon winning the lottery.
It is, however, advisable that you go on with your job as being too quick to leave can be a decision you regret later.
8. Clear Debts
As an individual, you may have unsettled debts. It is advisable that you purpose to clear all high-interest debts, be it student loans, mortgage loans, or any other.
However, when it comes to something like your primary mortgage, that one you can keep so long as it has low-interest rates.
This is because after winning the lottery, now you have more money, which moves you to a higher tax bracket. At this point, tax deductions will become important to you.
9. Set Aside Money for Retirement
Save some of the winnings in retirement accounts. Time moves fast, and the old age comes with less energy to work. Retirement money is able to cater to your needs at that delicate time.
Parting views on what you should do if you win the lottery
Many dream of winning a lottery, with big dreams and ideas they would implement. However, few people actually win lotteries, and a good number of those who win are not able to put the winnings to good use.
In case winning the lottery is one of the objectives in your bucket list, it is prudent that you start preparing your finances right now. Learning the concepts of investing regularly, living within a budget, and paying off debt will help you develop smart money habits that would serve you well after a lottery win.
All in all, you do not have to win the lottery for you to live a better life. Proper financial management of whatever you have can lead you into the life that you desire. Good financial habits are essential for all, having won a lottery or not.
I hope this write-up on what to do if you win the lottery has good tips that will help you in case you became lucky.