The Five Things You Should Do If You Win The Lottery

Across the world, millions of people play different lotteries each week, with thousands of people being made millionaires over the course of just a couple of decades. Falling into this kind of money can feel amazing, especially as some lottery winners can claim upwards of $10 million if they get lucky. But many people make mistakes after winning the lottery, causing them to lose it all in just a few years and end up right back where they started. So what should you do if you win it big? Read on to find out.

#1: Wait

You just won several million dollars in the lottery, there are all sorts of things that you’ve wanted to buy for years. Cars, houses, clothes, there are all kinds of things you can buy now. However, the safest thing to do is to wait and do nothing for some time. It’s best not to spend over 10% in the first year, having fun in moderation. Depending on which point you are at in life, you need to make sure you’re planning for the future and can keep yourself safe over the years, as just a few careless mistakes could put a comfortable retirement in danger.

#2: Enjoy Yourself – Reasonably

Being extravagant in terms of spending is not suggested to be a good idea. In fact, many would suggest that you don’t spend any of the money for a few months after the money hits your bank account for the first time. Don’t quit your job, nor change up your lifestyle dramatically yet. Instead, it’s a better idea to take out very small portions of your winnings just to give yourself and your family a taste of what the money could mean for your future if used well. Do some of the things you wouldn’t have been able to afford before but don’t go overboard. Nice dinners and experiences with the family go much farther than a flashy new car or huge house.

#3: Remember Perspective

Once you’ve had some fun, it’s important to take a step back and look at how much you have left and what you need to be doing with it, put the money into perspective. You should be looking at spending your money on things that generate more money. Think about your retirement and how much you will need in order to have a comfortable, worry-free life and begin with that amount. Compound interest over time can make a huge difference that many people don’t even think about. The goal is to live not off of the money that you won, but instead the money that your win can generate on a monthly basis.

#4: Open A Separate Account

If you’ve ever been shopping somewhere with good deals and discounts you know how difficult it can be to stop yourself from buying things you don’t need. Now imagine the same scenario but with a huge sum of money on items you’ve only ever dreamed about buying, now within your reach. It’s a good idea to open up a new, separate account for your money so that it becomes more difficult to reach, making withdrawing regularly a hassle for yourself. This way, you avoid spending money rapidly for non-important reasons.

#5: Get Advice

A lot of things become a problem when you come into contact with large amounts of money that wouldn’t have been a consideration before, such as income tax and estate issues among others. This is why you should be seeking out professional advice for how to manage your money appropriately. It’s best to not be cheap here and ensure that you select the best people for the job, as making sure your finances are safe and correctly managed should be your number one priority.

So there you have it, the top five tips for what you should do if you win the lottery. Remember to be safe with your money and set safe financial goals and boundaries, regardless of whether you have won the money or made the sum yourself. And good luck to anyone with a lottery ticket today, who knows when you’ll find yourself rereading these tips.