What will you do if you win a lottery?
One of the most trivial questions that we all hear is thinking and have imagined the answers to. Isn’t it the answer to many of our problems? Having lottery money can get you out of so many troubles.
“Your chances of winning the lottery are identical whether you play or not.”
Winning a lottery is always a possibility, but only when you buy it. The odds of winning a lottery are very slim, and we can’t even talk about that stuff without sounding moronic. So, we will not talk about that stuff today.
Let’s talk about things after winning a lottery. Think of the things you can do in case you have accumulated many funds.
Whenever you think of a lottery, you think of an expensive and luxurious lifestyle. Being able to quit your job and travel the world, travel in style, pay off your personal loans for bad credit with business class tickets or private jets, stay in five-star hotels, buy a big house, gold, diamond, expensive gadgets, expensive cars… oh! The list is endless.
Can we ever be content! I guess no. Well, the lottery is a similar kind of scene, where people get rich overnight. People go from rags to riches in just a few minutes and back from riches to rags within months.
Find out about previous lottery winners. Very few lottery winners remain rich. Most of them lose all of their newfound fortunes. Why does that happen?
It might come as a surprise to many. Statistics suggest that 70% of lottery winners become bankrupt within three to five years. Another surprising thing that you should know is, winning the lottery does not help people get out of debt; on the contrary, bankruptcy rates for lottery winners increased a few years after they won.
As per the study, lottery winners generally end up broke.
So, to answer the big question, why does the lottery winner end up being broke?
According to the experts, excessive spending, risky investments, and shoddy bookkeeping deplete all the funds, resulting in poor financial conditions and bankruptcy.
Of course, some lottery winners make it through the ordeal and go on to prosper, but the percentage of successful people is very small. Following is the list of a few reasons:
Well, congratulation if you have won the lottery. You are the lucky one. Now it’s time to think and plan to keep your fortune with you.
If possible, make sure to remain anonymous as per the laws and stay away from the limelight as much as possible.
Maintain your lifestyle and slowly advance it. Having a financial goal and plan is essential.
People start buying big house, upgrading their cars, taking expensive vacations, all of which proves to be fatal for their finances. My suggestion; slowly get into a good lifestyle.
Whether you had taken emergency loans for unemployed,credit card debt or a mortgage, clear them all. It will give you an idea of how much money do you have after paying debts so that you can plan your next steps. Paying off your debts will even build your credit score.
Give this time. Once you are settled with your financial plan, start spending slowly. After all, it is your money.
Make any investment or related decisions after having a proper and prolonged discussion.
Talking to a tax professional will help you calculate the tax and find out ways to save, if possible, on your tax amount. When you get the lottery payment, pay your tax on the whole amount right away.
Having an adviser will help you split your money into parts and invest wisely in different areas. Don’t invest all of your money in something that seems too wonderful to be true.
People like Disgruntled spouses can file cases against you for their share or even the whole amount. It’s a good idea to make sure you’re not a simple target, which is why you need a legal advisor.
Talk to your financial advisor.
Making a budget if you have won the lottery is more important. It will make you aware of your fortune so you can plan ahead and don’t fall into binge spending. It gives you the self-control to save your wins and not go on spending on totally unnecessary expensive things.
Winning the lottery is nothing short of an extraordinary thing. Winning a lottery can bring a lot of joy at the same time. It can have several adverse effects as well. It is necessary not to lose your cool, be composed and disciplined.
Manage your finances well, stay within budget, invest wisely and stay wealthy.