What Not to Do if You Win the Lottery
One Mega Millions ticket was sold with all the right numbers to win the $1.54 billion jackpot last week, and what should that instant winner do with all that money? First of all, don’t do whatever 70% of all lottery winners or recipients of a huge windfall did to go bankrupt! According to finance experts, those folks became euphorically delusional and thought they were as invincible as an indestructible superhero--and lost it all. The name of the instant near-billionaire (after taxes) who bought the winning lotto ticket in South Carolina has not been revealed. But if it was you, the following are some tips on what not to do if you win the lottery.
Do not tell anyone that you have the winning ticket! Lottery winners have actually been murdered for their tickets. You first need to stealthily take all the steps necessary to cash in on your winning lotto ticket. Next, you will do yourself a tremendous service if you try to maintain anonymity. With your identity revealed, the entire world could conceivably be at your doorstep, trying to lay hands on some of your newfound wealth. If you happen to have no experience with being wealthy, you are in uncharted territory. You need a trustworthy financial guide, at the very least, to help you navigate life with practically unimaginable good fortune, monetarily speaking.
Instantly Decide How to Receive the Cash
Receiving a lump sum of nearly $1 billion sounds beyond awesome, but it may or may not be the best way for you to receive your funds. Keep in mind that, again, approximately 70% of all those who instantly get rich lose everything within a few short years. Don’t assume you won’t be one of them. Get sound financial advice on what the best decision is for you, whether an annuity option or a lump sum.
Neglect Debts or Taxes
Make sure taxes are paid off the top, and don’t neglect existing debts. Many who got rich quick and later lost it all also failed to use their newfound wealth to pay the money they already owed. They were left in an even worse position than they were in before they hit it big, which is an avoidable tragedy on many levels. Some failed to pay taxes on their winnings, which is one of the worst financial moves that can be made.
Go on Unbridled Spending Sprees
Money is considered the magic that buys luxurious lifestyles dreamed of by countless millions. Many lottery winners have had a blast living the big life. They bought any and everything for themselves, loved ones, and friends, including multiple houses and cars. Sadly, they also learned how quickly even mountains of cash can slip through one’s fingers.
Fail to Budget
Get help from a trusted accountant as soon as you can. Even though you are suddenly rich, the only way to make sure you don’t end up losing wealth is by maintaining a budget.
Now, as far as what you should do with your lottery winnings, that’s an entirely different topic. It’s also a lot more fun to think about. But be smart. Keep the reins on spending because it’s like a runaway horse that will buck you off, leaving you broke and in a ditch. Be part of the 30% who get rich and stay in a financially sound position.