Did you just win the lottery? Congrats! Or maybe you’re holding your ticket awaiting a (hopefully) positive result.
Either way, if you get that big check you need to know what to do after winning the lottery so you don’t end up in a bad or confusing situation.
Because not many people win the lottery, there’s a lack of helpful advice online and you’re unlikely to get advice from friends or family members. We’re here to help.
Keep reading to learn about what to do when you’re a lottery winner.
Winning the lottery is exciting and you might be tempted to show off after receiving these results. Aside from close friends and family members, though, you should keep this under wraps.
If your area allows it, make sure that you remain an anonymous winner. People who have won the lottery have been subject to scams, threats, and manipulation from “mysterious family members” or any other people in the community.
Hire A Professional
Even if you think you do a good enough job with taxes and financial planning, it’s important that you seek out a professional (or a team of professionals) as soon as you collect your winnings.
Winning the lottery isn’t as easy as cashing a check and collecting all of that money. You’re subject to taxes, and with large sums of money, those taxes can be confusing.
Financial professionals will help you with taxes, where to allocate money, and any other confusing aspects of winning all of that money.
Take Care of Debts
The first thing to do with your winnings is taking care of any debts and setting aside money for your bills. Too many people jump to buying expensive things, and while you can have those things, it’s important to get yourself out of debt first.
While investing is important, paying off high-interest debts should be your primary concern.
Put Money Into Savings and Investments
Once your debts are paid, put money into savings accounts and investments. If you have a large sum, savings accounts are great even if they don’t have high-interest rates.
Use your financial advisors to plan out investments. These will help you maintain your money so you have financial stability for the future instead of for the moment. You’d be surprised at how far a long-term investment will take you.
Maintain a Reasonable Lifestyle
You shouldn’t try to live a lavish lifestyle; this is how people blow all of their winnings. Unless you’ve won tens of millions of dollars, it’s easier than you’d think to end up where you started.
If you invest well, you may not need to maintain a job (or at least a job you dislike) but you should still budget.
Go get that new house you want, donate to charities, and tend to trusted family and friends, but don’t get over-confident.
That’s What to Do After Winning the Lottery
You can’t jump to spending your winnings as soon as you’ve won. Knowing what to do after winning the lottery includes understanding the legal aspects, covering your financial responsibilities, and investing wisely.
Hiring professionals is the way to go so you don’t make any simple (but expensive) mistakes.
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