You’ve won the lottery, what do you do with the money? It might seem like you have it all figured out until you win, and the confusion starts. Granted, very few people win the lottery given the low odds and many participants in the game. Given how difficult it is to win, one must then be cautious with their winnings however big or small the amount is.
In many instances, when people win the lottery, they end up making bad-money-decisions that put them in worse situations than they already were before winning. Such conditions could be avoided by taking the correct measures immediately after winning. Experts have said that to be successful, has become an instant millionaire is to talk to the right people and make the right money moves. Unfortunately, many people forget that they need to invest the money they have recently won, which leads to them ending in more debts due to the excitement of the moment.
So, the most important question any lottery winner should ask, what do I do with the lottery money I have just won? Well, this is everything you need to know about what to do next:-
Steps to Take After Winning Lottery
There are several things you are supposed to do immediately after your win that will not only secure your financial position but increase the money you have just received. These tips have been given by entrepreneurs and financial experts who believe that winning the lottery and becoming an instant millionaire should be taken very seriously granted that things can go wrong very fast.
1. Don’t Settle For Annual Payments
Lottery payments can be awarded in either lump sum or annual fees. Annual fees are okay if you intend on staying in the rate race forever. This is because taking your money in small amounts only means that you are intending on spending it solely on your personal needs.
Taking the large sum, on the other hand, would mean you have a chance to invest it and let it grow over time. This way, you make more money while still living a better life than you did before. Although the money will have been taxed before your ownership, it always makes sense to take the whole amount and make wise investments compared to annual payments.
2. Be Quiet About It
It is human nature to want everyone to adore because of who you are or what you have. Tempting as it seems for you to want to tell everyone about your new win in life, it is wise that you lay back and give it time. Announcing to everyone that you have won the lottery is like putting a target on your back for financial predators to start preying on you. Granted, informing the closest people to you might not seem like such a bad idea. But, keep in mind that you will start receiving financial advice from everyone and you’ll also be expected to provide financial aid for everyone who asks for it.
Therefore, it is wise that you stay entirely about it until you figure out what you want to do with the money. In which case, you will not be easily swayed by people’s ideas or opinions.
3. Avoid Making Major Life Changes
You have won the lottery, and now you want to buy an apartment in New York, quit your job, buy your mother a new house and probably renovate your sister’s house, right? Wrong! The biggest mistake one can make after a lottery win is to make significant life changes that will take chunks of money of your victory.
Only after investing the money can you start making use of it. Otherwise, any expenditure before investment might be a massive mistake on your part. Of course, you are allowed to use the money on a few things that are essential that you need and deem basic. Quitting your job to travel with you lottery prize is also a no-no. The best way to use the money is to ensure it leads you to financial freedom and prepare you for the future.
4. Consult the Professionals
You probably don’t understand why you need any professional help when it comes to your money, right?. Well, you do! After winning the lottery, the money might be too much for you to handle on your own, which can be overwhelming. That is why you need a good lawyer and a legitimate professional financial advisor. And yes, emphasize the professional part. This means you cannot let your friends or family member be the people to advise you on what investments to make and which ones to avoid.
The main reason why you would want to have your lawyer with you during this whole life changing process is that they can help you make confident decisions. When it comes to drafting terms for a specific investment or generally communicating with the rest of the world, then your lawyer will come in very handy for you. It is also very easy to be duped with contracts and whatnot, with a lawyer you can relax because everything will be taken care of.
What about a financial advisor, why do I need one? Managing a lot of money for the first time can be a bit much for anyone. Your financial advisor can help you make profitable financial decisions and investments. The advisor will also assist you in managing your finances and everything else concerning the money. This way, you are protected from exploitation and financial predators.
5. Clear Outstanding Debts
You finally have money, how about you first clear your debts and start thinking of ways to make better use of your lottery prize money. The truth is there isn’t any upside in having debts, and in most cases, they usually sink people lower in their financial pit holes than they would be without debts.
This is why any expert would tell you straight first to clear your debts and then start making use of your money in other ways. Having your financial status look clean is way better than holding on to cash with no purpose whatsoever.
If you feel that paying all your debts with the prize money might take too huge of an amount from it, then consult with your lawyer and financial advisor who can give you the best way forward. It is a no-brainer to seek your team’s professional help before making any leaps to avoid misusing any money or making a wrong decision that might cost you more than you thought.
This video better describes how to use your lottery winning and the things you can do and one’s that you can’t.
In Conclusion
It is highly advisable that you understand, each person’s financial journey is entirely different and that you need to be very watchful before making any decision. The most crucial part of successfully gaining from a lottery win is to ensure you have an excellent professional team to help steer you in the right direction. Following the five steps above, you are set to reach new heights in your finances, allowing you to attain financial freedom that otherwise you wouldn’t have.
