So you’ve got lucky! Your numbers have come up and you’ve won a large amount of cash on the lottery. Before you run off and start spending your money, there are a few things that you need to know.
In this guide, we’re going to take a look at what to do if you win the lottery. Our guide will help you be smarter with your money and avoid fraud, scams, and other problems that can arise after winning the lottery.
Are you ready to be smarter with your lottery winnings? Then read on and let’s get started!
1. Make Copies of Your Ticket
There have been some seriously unlucky people over the years who have lost out on lottery winnings because they lost the ticket. Don’t let yourself become one of these unlucky people.
To avoid this situation, you should take good care of your original ticket, but you should also make copies of it. You may wish to make physical copies of the ticket by photocopying your ticket. However, you should also scan the ticket, making sure that every detail on the ticket is legible, and then upload a copy to a secure cloud.
2. Don’t Rush to Claim Your Winnings
If the media know that someone has won the jackpot, they’ll be on the lookout for the winner claiming their prize. If you’ve won a large amount of money, wait for a week or two before you claim your winnings, as hard as this might be.
Waiting this amount of time will also allow you the time that you need to make some smart financial plans. While going out and splashing your cash might seem like a great plan in the first flushes of your win, you need to be a little more careful with your money if you want to live off it.
If you’ve won a smaller amount, such as a few hundred dollars from a pick 3 game, this won’t be a concern.
3. Speak to a Lawyer
If you’ve won a lot of money, you need to speak to a lawyer fast. When you come into a large amount of money, your tax obligations will change dramatically.
Your lawyer will be able to help you sort out a tax system so that you don’t need to wave goodbye to too much of your winnings. Don’t attempt to do this yourself: there’s a good chance that you’ll make a mistake and fall afoul of the labyrinthine US tax law.
Your lawyer may also be able to recommend you a fantastic trust lawyer, who will be able to help you plan for when you die and pass what’s left of your winnings onto your children and family.
4. Speak to a Financial Advisor
Speaking to a financial advisor is vital after winning the lottery. If you’ve won a jackpot, you’ll suddenly have come into a huge amount of money, and if you want to avoid working for the rest of your life, you’ll need to have a very solid financial plan in place.
Your financial advisor will be able to help you come up with this plan. They’ll be able to help you budget with your money and suggest investments that you’ll be able to live on. They will also be able to find the right bank account for your money: some bank accounts will have better interest rates for your lump sum.
If you choose to receive your lottery payments in a different way, for instance, through an annuity instead of a lump sum, they’ll be able to create a monthly budget for you based on the annuity too.
5. Avoid Spreading the Word
While you might want to tell everyone about your newfound wealth, you shouldn’t. Spreading the word about your money will often lead to people asking you for money.
This puts you in a very tough position. You can either give them the money and lose a portion of your wealth right out of the gate or you can say no, and potentially lose a friend or a close connection to a relative.
Spreading the word will also lead to begging letters. There’s always someone out there who has something going wrong in their lives. While it might tug on your heartstrings, it’s not your moral obligation to help everyone: there are far wealthier people out there than a lottery winner who can make serious societal change.
If you want to use some of your money for good, we’d recommend that you donate to charity instead.
Only tell your family members, and make sure that you swear them to secrecy.
6. Don’t Quit Your Job
You’re going to feel very tempted to quit your job as soon as you get the good news. However, you shouldn’t.
Not only will this tell your boss and coworkers that something’s going on, but it’ll also cut you off from making any additional money. Even if you’ve won millions of dollars, having a few thousand extra dollars in the bank can still make a big difference.
You may also need to return to work in the future if you’ve not budgeted correctly, so you should leave in a gracious manner rather than quitting without any notice. Your reference will seriously suffer if you do the latter.
7. Don’t Stop Budgeting
Budgeting is very important, even for the rich! It’s easy to spend too much money and end up back where you started but with a nicer car and house. Don’t neglect your monthly budget.
What to Do If You Win the Lottery: Answered
At the start of this article, you wanted to know what to do if you win the lottery. We hope that you now feel a lot more informed about the right actions that you need to take. Follow our tips and you’ll be able to make your newfound wealth last.
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