Winning the lottery is a dream come true. It’s one of the best things that could happen to a gambler. Add to the fact that the odds of winning the lottery are as minimal as zero, then it’s as close as a miracle. But many don’t appreciate this miracle and soon after winning millions of dollars, turn broke in a matter of 1 year or two. They quickly lose all of their life savings and money. So let’s go for what not to do with lottery winnings?
So what do you need?
You’ll need a very serious plan to secure your money and save yourself from getting broke.
If you’re one of the people that have destructing money habits, then it’s better if you don’t take the lump sum, it’s better for you to take the payout over a period of 29/30 years so you can always have money on you, every year. Without any fear of getting broke.
Getting rich overnight is a serious business, so you better start planning what to from the moment you receive the email saying: “Congratulations! You won”.
In this article, you’ll find out 10 things you should NOT do after winning the lottery so you can save money as much as possible.
Do not forget to report your ticket immediately
A lot of people might think this tip is very obvious, but it’s not. You don’t even know how many people forgot to report their ticket immediately and lost it before they got the chance to demand their winnings!
These are very common mistakes, and that’s why the first thing you need to do after making sure you won the ticket is to sign off your name on the back of it. This way even if you lose it there will be proof that you’re the owner of the ticket.
After signing the ticket you’ll have to quickly report to the state that you’re the winner this way you’ll no longer be the only one responsible for your ticket.
Do not tell anyone
Winning the lottery is an exploit that everyone would be so happy to announce, which is the first mistake they’ll commit. How many greedy people would be waiting for this one-life-time chance?
You can bet that they are a lot! So once you win, make sure to keep it to yourself, or to someone very trust-worthy like your significant other so you can both plan what to do with the money.
Telling everyone means you’ll be the gossip of your city or town, a lot of ex-friends will show up at your door wanting to renew their friendship, a lot of fake managers and financial advisors will contact you, and you’ll be the subject of attempted robberies at worst.
Do not stay in debt
The first thing you need to do after winning the lottery is thinking about your debt. That’s right. It’s time to think of all those debts and mortgage you’ve got on your shoulders.
The stupidest decision you can make is to ignore your debt and start spending your money. So make sure to take some of your winnings and get rid of your debt first thing.
Then you can go on with your life and celebrate. Imagine losing all your money on stupidities then finding out that you’ve got no money left to pay off your debt? Now that’s hard.
Do not quit your job
Most people are always waiting for a big inheritance or for a jackpot in the lottery to quit their jobs. Although that’s a very tempting choice to make, it’s not wise. AT ALL.
You’re still not prepared for what the world has to offer now that you’re a millionaire, who knows if it was a false alarm anyway? So stay at your job for the meantime until you’re sure about your winnings and until you secure a plan for the future.
I’m not even going to list down how many people regretted quitting their jobs after the lottery. Your job is your comfort zone financially. And you should keep it.
Do not decide which form of winning you want immediately
A lot of lottery winners quickly decide on taking the lump sum over getting paid for 30 years of their life. And although the lump sum sounds very attractive and hard to resist, it might not be the best idea.
If you jump off to that conclusion knowing you’ve got bad money habits, love fancy restaurants, fancy clothes, fancy cars and a fancy lifestyle, then you’re in big trouble.
Because even if it doesn’t sound like it. Millions are so easy to lose if you follow that lifestyle without any sustainable income having your back beside lottery winnings.
So if you’re not wise and don’t manage money very well, It’s better if you get paid for a lifetime then take it all at once.
Do not make your financial decisions alone
What makes people lose money very quickly are bad financial decisions including bad investments, buying liabilities, not buying assets…etc. Which I know a normal person will suffer from if they won the lottery.
That is why; you’ll have to hire a financial advisor and an accountant once you know you’ve won the lottery. These two will help you make the wisest and most well-thought decisions so you can guarantee a passive income and high ROI decisions.
You should make them your best friends the moment you receive the news, if you don’t, then don’t be surprised if you turn broke after a couple of years.
Do not change your lifestyle
Oh boy! This doesn’t even concern lottery winners only, this goes even for those who just landed a job or won a big inheritance. Spending money is very tempting, it has always been this way and it’ll always be.
So I won’t really blame you if you go with the flow and start spending money on anything and everything. But it’s the right way to do it. It’s a very big mistake to change your lifestyle.
In fact, you shouldn’t even touch your money until you accept the fact that you become a millionaire and that the risks of being poor again are bigger than the odds of winning the lottery.
Do not listen to uncle jack
What I mean by uncle Jack is the one who has a very “interesting” project that will make you “very rich” in a matter of weeks. Uncle Jack is a genius and has been preparing for this project since forever but didn’t have enough money to make it work.
A lot of people like Uncle Jack will start coming your way the moment you announce you’re a lottery winner, some will ask you for help to get rid of their debt, some will ask you to finance their project, some will ask for a loan and you name it.
But the truth is, you’re not a bank, you’re not a tree giving off money, your money is yours and you should not spend it on others especially if they’re long-lost friends or family members who just happen to love you again.
Do not ignore budgeting
Budgeting is not for the poor and it’s certainly not for the weak. And just because you think you’re a millionaire doesn’t make you rich enough to not budget.
And that’s the truth, those rich people who you see out there didn’t get where they are by spending money and not budgeting. They got rich because they make wise investments, and because they save money. That’s the only way of getting rich.
So if you don’t set limits to yourself and to your spending, then might as well give your money the moment you win it.
And those are the 10 NOT to-do once you win the lottery. If you’ve got any other advice then leave them in the comments.
