So you won a massive amount of money from betting on the lottery? Now what? While many will lose their heads and blow it all on the most luxurious houses and fanciest cars, you will not. If you happen to be reading this, it means you have a vision for your future, a future where you will become wealthier after winning, not broke like the frenzied spender. Here we teach you about what to do when you win, and how to ensure you do not lose your head and spend your payouts in one go, while still enjoying a luxurious lifestyle.
First Do nothing
While this may sound really odd, it actually DOES make sense. Instead of going out and blowing it all immediately, take time to process the fact that you are way richer than you were a short while ago. It can be quite a shock to the system to go from counting every last penny to having millions, if not billions, in the bank. However, it is your money, so if you want to do that then go ahead!
This is possibly the most important step there is. You need to develop a team of advisers you can trust, such as an accountant, an estate planning attorney, an insurance agent, and a financial adviser with a good reputation. Do your research, you can’t find them in the yellow pages or on Google. Look for referrals, you’re looking for certified professionals. Get your team together right after you win, the sooner the better. Once you have compiled this team, you can figure out what you really want. What gives your life meaning? You don’t have to work anymore, so find out what it is that will fulfill you the most.
Pay Off Debt
You will never make a better investment than paying off your debts. With no more debt, you will have a huge burden lifted off your shoulders – and save money at the same time. It’s the one investment that has absolutely no risk and that is 100% beneficial to you.
Start an Emergency Fund
Even millionaires can have financial trouble, so ensure you start an emergency fund – it can only do you good. Plus, you’ll enjoy life more knowing that you are covered and have something to fall back on if the worst happens. Set up a healthy-sized fund, one that will be able to cover at least 6 months of your expenses.
Put Away Money for Retirement
Another good cause to set aside money for is your retirement fund. The best way to do this is to allocate a certain percentage of your winnings to your retirement fund. And if you don’t have one, get one. Old age is really the worst time to be broke, so don’t let it happen.
Give to Those Less Fortunate
Even before becoming a winner there were people less fortunate than you, so it’s only fair to pay it forward and give back. There are a number of
Learn to say no
But there is a fine line between giving back and being milked for all you are worth. Almost everyone you know is going to ask you for a slice of your winnings, and you need to learn how to say no. It’s a hard truth to swallow, but it will most certainly happen. You need to say no to all of them until you have decided on how you are going to spend your winnings,
Now that you’ve got all the ‘admin’ out the way, you get to spend some of your winnings! But to get to all these different stages, you need to actually WIN first. And what better way to do that than to bet on
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