If you win the lottery it would be a dream come true for most people. Millions of people go out and buy lottery tickets online daily hoping to win the jackpot. What would you do if you won the jackpot? Most people would probably by a house or luxurious cars. Some people think when you hit the jackpot you will never have to worry about money again. That is not true. There are things that you should do win you win the lottery so your money can last. Good money management could have you living well for years. If you have trouble with money or you do not have smart spending habits, I am going to give you five things you should do when you win the lottery.
Create A Plan
Do not spend your money when you first get it. You need to create a budget or talk to a financial advisor to help you handle the money that you won. Let the excitement go away first, before you spend anything. You should not go wild and make extravagant purchases. You should have a well-thought-out plan of how you are going to spend your money before you making any decisions.
Don’t Tell Anyone
When people find out that you have won the lottery all of a sudden you have a lot of new friends. Family and charities will most likely ask for handouts. It is ok to give money to your friends, family, and charities, but if your state permits it staying anonymous would be beneficial. Check the rules of your state to see if you can remain anonymous.
See A Tax Specialist
When you win the lottery if have two choices, you can either take the money all at once or get paid in 30 instalments over twenty-nine years as an annuity. When you receive the money as a lump sum, you must pay taxes immediately on the whole amount. Get a tax advisor to help you way out the pros and cons of which route to take. There are advantages and disadvantages of taking the money all at once or getting instalments. Ask your tax advisor which payment plan is the best.
Think Before You Act
For about six months after you received your lottery money don’t do anything extreme like quitting your job, or start a name brand clothes collection. Set aside a certain amount for when you want to splurge. It may be tempting to have non-stop shopping sprees, but you must think before you act. Save your major purchases for later. For example, if you need a new vehicle set a budget for the car and wait to buy a more expensive one later.
Pay Off Your Debts
One great thing about winning the lottery is that you can pay off your debts or pay those bills that pop up every month. Whether you need to pay off a credit card, loan or mortgage using your lottery money for paying off your debts can help you in the long run. Just simply paying a little at a time will be one less dollar that you owe.
Hitting the jackpot will change anyone’s life. How you handle your money is what makes it worthwhile. Regardless of how much you win, these are five things that you should do when you win the lottery. Following these steps will help you enjoy your lottery money even more, and you will feel good knowing you made the right decisions.