When you are fortunate enough to have won a large lotto prize you must beware of the many pitfalls that have beset previous winners. Don’t just rely on the luck of the Irish to get you through.
Although many people dream about what they will do with the money when they win the lottery when it actually happens to them they are shocked and make a lot of silly emotional decisions that often lead to ruin and debt!
To ensure you do not fall into the trap of the curses lotto winners it is always best to have a plan in place before hand. Unfortunately most people do not really believe that they will ever win so they don’t make any plans for winning.
The following tips are for those of you who are wise enough to prepare for your win or those of who you have just realised you’ve won.
1. Take a Deep Breath!
Do not rush into any drastic actions. Almost all of those people who lost their lottery winners and ended up worse off than before they won jumped into spending money immediately.
Conversely those who took time to consider their win and what the money would mean to them mostly flourished and grew their wealth.
2. Seek Professional Advice
Consider hiring a solicitor to collect your winnings for you so you can stay anonymous. A financial expert i.e. Financial Advisor can also help you legal issues regarding your winnings.
3. Keep the Win Quiet
You would be surprised at how many requests you get for money and help when it is openly publicized that you have won the lottery.
There is nothing wrong with being altruistic and helping other people but in the initial stages of a receiving sudden wealth the majority of people find it difficult to adapt even those who have prepared for it.
You can help as many people as you wish but do it privately and not in the public eye if you want to retain your privacy. Openly flaunting your new money can become a bigger headache than it is an ego boost and in rare, but very real, occasions it can even endanger your life!
4. Take a Time-Out
Consider going on 2 week holiday with only your immediate family or with other people who share in your win (such as syndicate members).
Let this be your only expenditure until you return.
Use this time to really think about your options before you make any bog purchases or investments.
5. Set Your Limits
Set an amount for buying yourself some little luxuries but without going overboard.
Set an amount you plan to save, an amount you plan to spend and an amount you plan to invest.
Many winners who ended up even more wealthy through wise investments and proper money management bought themselves vehicles that already within their price range before the win or just above that range. They also bought modest housing in middle-class areas rather than opting for the big house with a swimming pool and personal gym.
The rest of their money was used wisely.
6. Invest Wisely
Avoid the trap of investing in family or friend’s business ventures that are based on ” a wing and a prayer”. Seek the advice of a competent financial advisor, with a proven record, who will advise you of your options.
Consider investing in things you know about and thoroughly research your market before investing!
7. Enjoy it!
Don’t get too stressed out by your win.
Some lottery winners find the responsibility of winning a large amount of money almost too stressful to bear. Many relationships have been destroyed by sudden wealth as one or both partners worry about losing the money or get into loggerheads over how to spend it.
If you put a solid plan into action and know what you can spend and what you cannot, know where or how you intend to invest the money you have set aside for that purpose you will feel much more relaxed and in control.
Be sure to see the joy in your new found wealth. You deserve it so enjoy it!
Next: Luck of the Irish