Placing a bet on the lottery and winning is everyone’s dream. While some people think it depends on pure luck to win the jackpot, are you prepared if your numbers actually win?
Winning the lottery is definitely a life-changing event for every lottery winner. Becoming into a millionaire overnight is the ultimate fantasy for every bettor. State lottery and Powerball winners have been instantly transformed into millionaires just by betting on their number sets. For a regular Joe, winning the grand jackpot is a dramatic point in his life, but what if Mr. Regular Joe doesn’t have the smarts to safeguard his keep?
More often than not, people have the tendency of becoming “one-day millionaires” and will spend so much once they get their hands on tons of cash. Some people might be lucky enough to win the lottery even twice, but establishing a mindset that makes you sustain your monetary reward is another story. There are cases where lottery winners have filed bankruptcy because they are pretty much pre-occupied that they have plenty of lottery money for ridiculous spending.
So what do you have to remember once you become an instant millionaire? Here are 5 tips to keep in mind:
1.) Avoid Announcing to Everyone that You Won the Lottery
It’s natural to mention to your friends and relatives that you hit the jackpot. What doesn’t seem to be right is to declare it as a shout-out on your social networks. If you post on Facebook that you’re a lottery winner, your security is in danger in more ways than one. It’s not everyday that someone wins the grand lottery prize, this is why state lotteries are implementing a rule to keep the winners’ identities anonymous.
The idea here is to just tell a select group of relatives and friends that you trust with and have the intentions of sharing the jackpot with. Once you win the jackpot, it’s always a best practice to be humble and keep mum about the good news.
2.) Don’t Turn into a High-Roller
Every person who places a bet on the lottery wants to win because he wants a better life. We fantasize of owning a house so won’t pay the rent anymore, or even spending on things that we don’t really buy when we were mere employees. It’s crucial to remember that if you instantly turn yourself into high-roller overnight and not thinking about the dollars you spend, these dollars will be spent but your high-roller mindset will be retained.
The problem? You still want to be a bigtime spender even if you need to save up already. The key here is to set aside a significant amount for your savings, you can invest some of the funds before you think of spending on other things you don’t really need. Keep in mind that winning a lottery prize isn’t the same as your monthly salary, so if you win the jackpot you need to learn how to invest to make more money.
3.) Don’t Pretend that You are a Financial Expert
If you’re a mere an employee relying on a monthly salary, you’re not the best person to decide if you should invest in a business or buy stocks. Once you’ve won the lottery jackpot, don’t get too excited with tons of cash. It’s a best practice to hire a financial consultant that will assume as your advisor in terms of managing your finances and assets.
So why should you bother hiring a financial expert? Bear in mind that lottery prize money isn’t tax-free; you should pay the top tax bracket to the IRS including the highest state income taxes. This is where financial expertise comes into play; you need to know how to protect your estate and assets.
4.) Consider your Budget Habits
The moment you win the lottery has an instant effect on your purchasing capabilities. It’s odd if you just live within your means if you have tons of money, right? The idea here is to set limits for your spending and don’t get easily enticed by agents offering mansions and sports cars. Once you purchase these luxury items, chances are you won’t be paying them in full.
Agents will advise you to resort the payment as an installment basis. Of course, you won’t mind the interest rates since you have the Richie Rich mindset already. So remember to make smart purchases within your budget.
5.) Write your Name on Your Ticket
It’s one of the easiest things to do yet some people tend to lose their winning tickets or even steal it. Remember that lottery tickets don’t have your name on it, so it’s a best practice to write your name on the lottery ticket to secure it. There have been disputes before when a winner shows up to claim the jackpot but he lost the ticket, then someone claims the prize because he has that ticket. It’s tricky situation that you can prevent by writing your name and signature so as to secure your ticket, besides, it’s your winning number set that you’ve been taking care of that won.