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Everyone buys a lottery ticket now and then, and everyone knows that the chance of them winning is incredibly slim. But, what if you did win? Most people think that if they ever won the lottery, they’d never have to worry about a thing, especially money, for the rest of their life. Unfortunately, this simply isn’t true. In fact, if you’re not careful, winning the lottery can ruin your life. Here are some tips that you should follow if you ever got incredibly lucky.
If it’s legally possible, it’s always a sensible idea to remain anonymous about your lottery winnings. Unfortunately, if you go public, you are always going to get someone that wants something from you, whether this person is a friend, a long-lost relative, or even an ex. If you keep your news from anyone but those closest to you, you know that no one is speaking to you just for your cash.
Take The Annuity
Winners of the lottery always get to decide whether they want to take a lump sum of money or have the winnings paid out over many years. If you take the lump sum, you end up receiving less money and will have to pay a large amount of tax on the cash. If you ever did need a large sum of money or an advance on your payment, you could contact a structured settlement company. Find out more here!
Speak To Professionals
When you’re in charge of such a large amount of money, it’s important for you to have professional help with it, to avoid losing it all because of a silly mistake. Handpick an investment advisor, accountant, and lawyer, and have them work together as a team to help you out with your finances. They can help you budget your money, and work out if and where you should spend your cash.
Pay Off Your Debts
The first payments that you’ll likely be advised to make are ones towards paying off your debts. After all, there’s no point in having companies hassling you for money when you have more than enough to get rid of them. Make a list off all of the debts that you owe, and pay them off one by one. The rush of being debt-free will be absolutely amazing.
Avoid Lifestyle Changes
When the lottery ruins people’s lives, it’s usually because the winner immediately quit their job, made huge, unnecessary purchases, and started to live a life of luxury. You should avoid doing this, at least for a little while. For the first six months after winning, avoid making any huge purchases, like a home, car, or holiday, and don’t quit your job. Instead, use this time to formulate a plan, and set aside some money each month for a small treat or two.
Winning the lottery is absolutely amazing, but that doesn’t mean that you should start spending the second the numbers are called. You need to be sensible, or you’ll risk losing it all.