Tips for what to do if you win the lottery
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Whilst 'wealth' is something that is dreamed of by everyone, a sudden influx of cash will undoubtedly have an impact on your life and goals.
Going from your average day having your normal daily income to walking into large amounts of money can sometimes be bittersweet.
On one hand, cash can create a new sense of fun, giving you financial freedom - but on the other, understanding what you need to do with the funds can be overwhelming.
Luckily, there are steps that you can take that will guarantee your finances are protected and secured.
What not to do if you win the lottery
Even though everyone dreams of winning the lottery in the hopes it would solve a lot of our problems, it can actually create the opposite effect and cause a lot of issues if not managed correctly. Take a look below for some tips on what NOT to do if you win the lottery.
Firstly, refrain from hoarding your windfall in cash for many years. Cash in the bank is a great place to start - however, there are drawbacks.
The biggest drawback is that the interest gained on bank deposits is dependent upon ordinary income tax, and your new rate of return rarely exceeds the inflation rate. Because of this, your net real rate of return can be negative, which means you sacrifice and lose purchasing power over time.
Another thing to not do is skip informing yourself and learning about personal financial planning. Learning about how to handle your new large amounts of money may feel intimidating at first, however, you can start with baby steps - such as reading esteemed online publications from independent sources.
As you become better informed, you will have a better understanding of the financial risks and benefits of long-term investing. However, resist investing in friends, family members, “get-rich-quick schemes”, or “can’t miss” investments.
What to do if you win the lottery
But what to do if you actually win the lottery? Here, Lottoland gives us the top tips for what to do.
1. Hold your tongue
First, decide whether you want to make your newfound wealth public knowledge.
If people become aware of your good fortune and wealth, you may find some suddenly appearing in your life asking for the same thing – your money. However, try to refrain from being over-generous or too charitable as this can be one of the fastest ways to lose the money you won.
Though it is difficult to hide your new lifestyle, it may be worth making up a ‘cover story’ if need be and making sure to never share exact information about the amounts of money involved.
2. Take a breath and think
Due to the unexpected way that you came into the cash, it is easy to think differently about the lump sum of money you won, compared to how you review and consider the money you have worked hard to earn throughout your life.
So, it is vital that you do not get carried away with the lavish lifestyle your new wealth affords you to have, but instead, consider the situation, the amount of money and plan ahead. During this initial period, it can be a good idea to tuck away your money into an easy-access savings account.
3. Ask for help
Most of us only think about how we would spend a windfall. However, we forget to think about or are not even aware that a windfall comes with a few logistical bumps - issues such as taxes, financial long-term impacts and legal requirements must be taken into consideration.
In order to handle a windfall, you need to have professionals to help you throughout, such as an estate-planning attorney, certified public accountant (CPA) or tax advisor, and financial planner.
4. Consider the long game
It can be tempting to spend an unexpected windfall on something short-term like a sports car or a luxury holiday But if you don’t have much in the way of savings for your retirement, you should consider ploughing some of that money into your pension pot.
It’s certainly tempting to walk away from the 9-5 grind, but staying employed is a smart long-term tactic to preserve your windfall. If you genuinely can’t stand your current vocation, however, a financial windfall can offer the breathing room to help you pause and decide what’s next in your career.
Increase your chances with Lottoland
Although coming into a windfall seems daunting, it’s everyone’s dream to win the lottery - and Lottoland can help you increase your chances to do so.
Lottoland has two lottos that have previously had jackpots climb over £1 billion - US Powerball and MegaMillions.
Lottoland also offers the chance to bet on lottos that occur every four minutes, such as KeNow with a jackpot of £1 million and Keno 24/7 with a jackpot of £10 million.
You can also bet every hour with Millionaire GO, and be in with a chance to win a jackpot of £25 million.
Or, bet on MINI Lotto for as little as 35p for potential winnings of a whopping £70,000, as well as Cash4life with a jackpot of £1,000, and many more.
All in all, think before spending! As exciting and thrilling as the surprise can be, think smart, take control of the money and make a great plan to spend or invest your lottery winnings.
