How will you Manage Your Finances if you Win a Lottery
How would you feel in case you get a jackpot suddenly. Well, anyone will long for this. But, all of a sudden, if you have a big sum of money, it may be very taxing to manage your personal finances, Managing a lottery jackpot is not easy, but following these five steps could simplify matters. Playing the lotto is fun, make sure that you get the most out of your money if you are lucky enough to win. Lotto fans who are lucky enough to experience the thrill of seeing all the numbers on their lottery ticket match the digits that come up after a draw may find themselves in possession of incredible wealth that could potentially give them the keys to the lifestyle they always dreamed of.
However, with a massive windfall such as a lottery jackpot – which can in some cases be into nine figures – it is good advice to be smart, because that much cash may be easier to squander than some think.
Step 1 – Exercise restraint
Nobody can blame a lottery winner if they want to go out and buy the car of their dreams to celebrate their newfound wealth, but splashing the cash should also be an exercise in restraint, after all, the prize is not an infinite amount.
By taking it slow, people have the chance to look at the bigger picture and realise luxury goods may not be what makes them and their loved ones truly happy and that taking an intelligent approach to finances is preferable in the long run.
Step 2 – Get financial advice
Managing millions is a difficult task and it is recommended that winners enlist a financial adviser to help them make the right choices. This is a service many official lottery organizations offer to their jackpot winners, which is beneficial as the expert will be used to discussing these matters.
A financial adviser can give lucky players guidance on maximizing their wealth by investing in assets such as property, as well as ensuring the correct amounts are set aside for retirement, a child’s future and for inheritance – if this is what the winner wants to do.
Furthermore, he or she can advise how much to give to good causes and – if the individual does not know which charity to support – what to do with the cash to ensure others less fortunate can benefit.
Step 3 – Protect your fortune and family
The media attention a lottery jackpot can bring can lead to some people begging at the doorstep of the fortunate individuals, however, it is important to remember that winners cannot possibly help everyone and that their windfall is a finite amount that should go towards supporting loved ones and selected good causes.
Step 4 – Budget, budget, budget!
By drawing up a budget – perhaps with the help of a financial adviser – lottery winners can ensure their jackpot goes as far as they want it to go.
A clever budget could allow some people to retire early, or ensure they and their loved ones are financially comfortable for the rest of their lives – but this cannot be assured unless the winners have put some effort into planning.
Step 5 – Invest, invest, invest!
Finally, intelligent investment can mean a lottery windfall from a winning lottery ticket never shrinks away to nothing, with such funds rolling over enough interest every year to see the winners and their family enjoy the benefits of clever banking throughout their lifetime.
Some may invest in a good pension or saving account, while others might sink their finances in property.
Indeed, a big lotto win also has the potential to allow people to explore other markets such as fine art, precious stones and classic cars, giving them the chance to put their money into something that interests them.
Derek Gotso is a journalist, editor and blogger. His latest online articles can always be found on www.thelotter.com. When he isn’t writing, you can normally find Derek either on the ski slopes or cooking his famous chicken pot pie.