Winning the lottery can be a blessing and a nightmare. Even if it’s not multiple millions, things will change. The way people see you will change and so will the way you think about money.
For those that say, ‘nothing will change’ are kidding themselves. if you think you will just walk into your regular job like nothing has changed, you will find out rather quickly that it has all changed.
Lottery winners can often find themselves in trouble, losing their money quickly or making bad choices. If you are someone who has recently won a large sum of money, here are some tips on how to handle the situation.
Lotter Winner’s Guide
Winning a lot of money is different than accumulating wealth. It can completely overwhelm people, to the point they would rather just give it away instead of cope with the issues that go with it.
1. Be Prepared for Life to Change
Change your phone number and get one that is unlisted. You will have people calling you with sob stories about how they only need a little bit. This will happen, especially where you don’t expect it. From strangers and family alike.
When you go out with friends, prepare to be footing the bill. They will just assume you want to pay and no one will be reaching for their wallets.
You may want to keep your job, but if you won a lot of money, like a Powerball, then people will resent you and the situation will be uncomfortable.
3. Seek out Financial Advice
The first thing you need to do is get advice on receiving the money. If there is an option to how you are paid, for instance, one lump sum or in payments. There will be consequences involved, either way.
You will want to understand about the taxes issue and also what happens if you get installments. This can depend on many things, like your age, your debts, how large your family is, and state tax laws.
2. Get a Lawyer
Get advice from a lawyer. People will be trying all sorts of methods of getting your money into their pockets. Expect lawsuits, bogus charities, pleas for money, and all kinds of crooked and backhanded attempts to swindle you.
This is also necessary for those getting the annual payments rather than one big payout. You want to have in place precautions in case you are incapacitated or die. Your will and other legal details need to be in order so creditors or the state doesn’t take the money.
3. Learn to Say No
It’s not up to you to buy all your friends a house. Even if you do, it will never be enough. Learn to say no and face the music if they decide you are no longer going to be friends.
You don’t want them to be your friends, anyhow. Learning to say no to all the charities, the shops and the car dealerships and everyone else who will have their hand out wanting their piece of your winnings.
It’s a very powerful word and very effective for culling the herd. Say it to your family, your friends, to everyone. In fact, start saying it before you even buy the ticket, just in case.
4. Pay off Your Debts
Get rid of all those debts. Student loans, credit cards, car payments, pay everything off so you have a clean slate. Don’t give anyone a reason to come after you. get rid of all your mess, then take a vacation.
5. Talk to Other Lottery Winners
This can be very helpful. These people have been through it and understand what you are going through. It’s a different situation, to be a lottery winner and it’s helpful to talk to those in the know.
You can learn from them and their own situations, understand what they have been through and ask questions they will have answers to. For tickets or more info, check here.
6. Invest Wisely
Get expert advice on how to invest your money. Talk to more than one advisor, if you need to. Don’t make any rash decisions and try not to go too crazy all at once. Whether you invest in your family’s future or invest it so it is working for you, you still need sound advice.
Maybe, you can do both. If you have kids, you want to set them up for success in the future. College funds, investments in business for them to run, or real estate to lease or sell.
7. Avoid Publicity
You can avoid a lot of headaches and nonsense by not splashing your face all over the news. There may be a clause in the lottery that wants you to, but you can wear an easy disguise.
There is often a cooling period between the winning numbers being called and when you can retrieve the winnings. Take your time to get some really sound advice before you pick up the money.
It’s a good idea to keep it quite, as well. Your first instinct is to shout it from the rooftops, but it’s best to keep it quite as long as you can. This allows you to continue on with your regular life until you have some solid plans in place.
If you watch interviews with lottery winners, very few of them will claim it made their lives better. That doesn’t need to be you. If you get great advice, don’t go berserk and start buying everyone cars and houses and be clever, you can actually enjoy your winnings.
You may need to leave the area if you live in a small community, or just stay out of sight until the fever dies down. If you invest well, you can live off the income of those investments.
There are many charities that would also benefit from your generosity. This is a nice way to give and share your newly found wealth with others. They don’t even need to know it was from you.
For more ideas on investing, please keep reading here.