You Win the Lottery! Now What?
It seems that the lottery isn’t all fun and cheques. There are a lot of questions that come up after you win the money, such as: what should you do with such a large sum of money?
Everyone would kill to get the winning numbers of the lottery, however winning the lottery, is almost impossible. The chances of getting those magic numbers all to match is 1 in 175, 000,000. Once in every Blue Moon, we hear that one lucky person has won the lottery, however, we hardly ever hear what happens after this.
According to an article on And Then We Saved, entitled “True Story: “I Won 6 Million in the Lottery!”a man who won the lottery lost it all from just taxes and a few smaller mistakes. In the twinkle of an eye, he went from beggar to king then back to beggar again. Now don’t fret. There are many lottery winners who keep their cash, but how?
Number 1: Sign the ticket!
You are holding millions in your hand, and you can’t risk losing it. Sign your golden ticket, and make many copies. If you don’t have proof that the ticket is yours, get ready for the biggest disappointment of your life. If you misplace your lottery ticket and the finder finds no proof that it’s yours, you won’t be getting a penny.
Number 2: Use some of that cash to get a financial adviser.
Sadly, many times, ticket winners are swindled out of more money than they should lose. Keeping a financial adviser around can keep you from paying taxes and fees that are just there to trip up the winners.
Number 3: State Farm advises to keep it quiet.
When someone wins millions of dollars, others will want in. If you are screaming at the top of your lungs that you’ve gone from rags to riches, you should expect your inbox, texts, and even mailbox to be filled with requests from charities and even strangers.
Number 4: Don't spend cash on fast cars, and big houses, except you, need them.
The best way to get the most bang for your buck is by investing. An article by Pocketsense teaches how to become a millionaire by saving and investing. Who doesn't want to be a millionaire?
Number 5: Spend your money wisely.
Pay off your debts, put money towards college funds, and have a safety net. When you google, “millionaire's lifestyle”, you are going to see fast cars and expensive homes. The sad part about the lottery is that it’s not a stable source of income. Self-made millionaires have a steady cash flow from businesses and investments. With lottery money it runs out fast, so invest properly, to prepare you for the rainy day.
The key to keeping your cash and making more is simple. Educate yourself, and use your money wisely. Many big-ticket winners lose their cash in less than a year. The government takes about 32% cut off the bat, so if you don't want to lose every penny, get some help, and save.