Winning the lottery is a dream that many people have. You might imagine how you would spend the money you have won. Depending on how much you win, there are so many things you can do with the windfall. There are smart ways to secure your money for long-term wealth and avoid common pitfalls. Check out the following for ideas on what to do if you win big from playing the lottery.
First steps
When buying your ticket, you might have to decide if you want to receive your winnings in a lump sum or in payments. Lump sum winnings are taxed upfront, but payments are taxed individually. If you know that you can responsibly invest the lump sum, then it might be worth taking that route, but the installment plan rations your winnings, so you have a steady stream of money over a set time.
If you realize that you are holding a winning ticket, immediately sign the back of it. Anyone with a valid photo ID and their signature on the ticket can cash it in. You can sign up for alerts to let you know when you have won; that is a good idea because lotto alerts inform you to quickly sign your ticket and claim your winnings.
Hire investors, accountants, and lawyers who have your best interests in mind when helping you manage your money. Gather a team together who will help you make prudent and cautious decisions about investing and meeting your long-term financial goals.
Dream purchases
What is your dream purchase if you win the lottery? Making a budget is essential with a cash windfall, but there are probably a few major purchases that you would like to make with a portion of the money.
- Think about buying your dream car. Maybe you have always wanted a custom-built home, so you can spend your days in comfort or you might choose to remodel your current home. A vacation home or a RV can allow you to travel with freedom.
- Look at life’s luxuries, like hot tubs, swimming pools, manicured lawns and gardens, ultra-comfortable mattresses, and designer clothing.
- Splash out on the latest technology. From smart devices to virtual reality, there are some incredible items on the market. You could even look into getting a new high-end computer loaded with design software or a new TV.
- For those who have the basics covered, you might spend big on a nice trip across Europe or Asia. Consider indulging in culture, food, language, and customs.
Mistakes to avoid
If your name is released as a winner of the lottery, it can be difficult to maintain your privacy. That can lead to being hounded by anyone you know who wants money, and attention by the press. Experts suggest hiring a legal representative to handle media questions and avoid sharing personal information about how you chose the winning numbers, especially if they are birthdates, social security numbers, or other personal information.
Keep your family out of it. Deleting social media accounts can cut off people seeking money or information from your connections. Avoid answering questions from reporters about friends and family members as well.
Believe it or not, no matter how much money you receive, you will still need a budget. Winners who eventually file for bankruptcy are always in shock that they went through a large sum of money in such a short time. While you are setting your budget and dealing with the legal aspects, it is smart to continue life as you normally would and avoid telling family members and coworkers the news until you have made investments and planned out your finances.
Previous winners
Most lottery success stories begin with making smart financial decisions, like investing money for long-term wealth and then carefully budgeting the rest.
Winners often use their money to retire early with proper planning and ensure that their closest family members have financial stability. Some found charitable organizations and help those in need, while others set up a trust or give away their earnings.
From securing your ticket to creating a budget, there are a few things that you can do when you win the lottery. Make sure that you have set up alerts so you are the first to know and be cautious about who you tell. Hire professionals to deal with the difficult aspects and create a clear vision of what you want to do most with your winnings. Hopefully by following these tips, you are able to get the most out of winning the lottery.
