The only stories more popular with the tabloids than lottery winners are those about winners who have squandered their millions. Unfortunately there are more of them than you would think. Winning a large sum in the lottery is anoverwhelming experience. What happens after winning the lottery? Some people find it difficult to cope with the newly acquired wealth. To help you get ready for the jackpot you want, we’ve prepared ten tips for lottery winners to help you with your new financial situation.
Predicting the right lottery numbers to hit the jackpot isn’t that easy. Nevertheless, tipsters all over the world manage to clear the lotto millions week after week. But what happens if you actually win the lottery?? Countless players cherish the dream of winning the lottery. But when this really comes true, most people don’t know what to do next. After all, years of dreaming don’t prepare you for reality. Don’t worry, we provide all the answers to the questions that come up when you finally win the lottery. Here you will find ten winner tips, which prepare you for the millionaire existence!
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Winning tip no. 1: Stay calm and think
It’s a once in a lifetime moment in your life and like all extraordinary events, sometimes it takes a while to realize and process the situation. That’s why it’s better to proceed carefully instead of rushing into everything and rush to collect your winnings- because once you’re outed as a winner everything changes .
We’ve put together what exactly happens after you win the lottery: First comes the disbelief, then erupts the giant joy and champagne corks pop without end – the usual pomp and circumstance, with which one celebrates lottery millionaires. The highlight is the official handover of the winnings, often with an oversized check. And suddenly the excitement of the novelty is over and reality sets in.
It may feel like a fairy tale, but it is not. You need to realize this – preferably as soon as possible. Also, understand that winning the lottery doesn’t automatically ensure you’ll live happily ever after. This requires a lot of preparation.
Sure, you’re incredibly rich now, but you should first be aware of the following: although your winnings are a huge chunk of money and the sum may seem staggering, it is not unlimited. So think long and hard about exactly what you want to do with your winnings, and plan your next steps carefully. Of our ten tips for lottery winners, this may be the most important of all.
Winning tip no. 2: Stay anonymous
We are completely serious about this. Don’t tell anyone about your lottery luck, at least not yet. You don’t want your face in every newspaper, on the Internet and on TV, so that everyone can recognize you and beg you for money. So if you’re not sure, we recommend staying anonymous after a big win.
Even the most gregarious celebrities will tell you that there’s a downside to being famous. Lack of privacy, seething jealousy, threats, mean comments and vicious provocations on the Internet- all this is the order of the day. You don’t need this in your life, trust us. No one needs this.
Now you may be thinking "But I can tell my family and best friends, can’t I??" Our advice would be to wait until you are prepared for the consequences and have made the necessary legal and financial arrangements. The same goes for social media – avoid the urge to update your Facebook status. You might regret it later.
First and foremost, as I said, it’s about exercising caution. Those who truly care about you and your well-being will appreciate your need for secrecy.
Winner Tip No. 3: Don’t quit head over heels
Beware of this faux pas at this early stage. Quit head over heels after winning the lottery, is one of the most common mistakes made by those who can’t wait to burn their bridges and give their boss a piece of their mind.
Even if you hate your job, it helps you to keep your feet on the ground and not go completely crazy. Your job will bring you down from cloud nine and allow you to really appreciate your lottery luck. Nothing works better for understanding the true value of money than a gentle reminder of what a grind it can sometimes be to put food on the table.
Many lottery players whose winnings are in the single-digit millions overestimate how long their money can last. A house, a new car, an investment fund for the children, expensive vacation trips – all that adds up. In this situation, all you probably lack is a regular monthly income. So don’t burn those bridges just yet.
Also, never underestimate the social aspect. Many winners who take early retirement suffer from being alone and aimless. Take Jane Park, for example, who won £1 million in the UK lottery when she was just 17 years old. She bought a house, but loneliness overcame her, which is why she rented out her first home and moved back in with her mother. Later, she even decided to take a part-time job at the local chip shop because she missed interacting with other people.
Winner Tip No. 4: Don’t go shopping
For some lottery winners, the euphoria takes on such proportions that they lose their Completely short-circuits reason, causing them to go on epic shopping sprees. Countless winners, young and old, are unable to shake off the initial recklessness and rush headlong into the champagne lifestyle without ever looking at their dwindling bank balance – until it’s too late.
Evelyn Adams, for example, is a New Jersey woman who accomplished the feat of winning the lottery twice (in 1985 and 1986), only to gamble away all the winnings in a casino and end up living in a trailer park. But there are plenty of stories on this side of the Atlantic that pack a punch, too. The most notorious is probably the story of Michael "King of the Chavs" Carroll, who blew his entire £9.7 million windfall on expensive bling and extravagant women. True to his style, he also had a penchant for record-breaking cars. Now he’s lucky to have a job in a cookie factory.
The tabloids love these kinds of stories, so gossip reporters eagerly pounce on all lottery winners, especially if they ultimately become losers. But before you do, take Monty Brewster from the US comedy To hell with the coals (1985), it might not be wrong to consciously turn away from your profits for a while. At least until you are aware of how much money you actually have now and understand how to use your wealth profitably.
Winning Tip No. 5: Make a priority list
Take your time and do some self-analysis. You now have the means to do pretty much anything you want to do in your life – but have you ever really stopped and asked yourself what exactly that is? Everybody has different dreams- now you can find your own.
The obvious purchases when you’ve won the lottery include a big house, a fancy car – but do you think these things will make you really happy? Would you be happy living in a big mansion, isolated from the outside world? (Jane Park was not.) Do you really want to drive a luxury car that you can’t park anywhere for fear someone will damage it? Maybe you’d be a lot happier if you bought an RV to take on a road trip in the U.S. like you’ve always dreamed of doing?
Remember that you don’t have to impress anyone: just do what makes you happy. Although we live in a consumerist society and are programmed from childhood to think that buying new, bigger, flashier things will make us happier, that’s not always the case. Listen to your inner voice. What dream have you had since you can remember?? What has always been at the top of your wish list? What adventure tempts you? Once you have the answer to these questions, the next one is: what are you waiting for??
Winning Tip No. 6: Get legal advice
Dreams are wonderful, but now it’s time for a reality check. Note that now that you’ve won the lottery, you’re in a tricky position. Your winnings make you vulnerable to all those who are only out for their own gain. There are countless movies and TV shows in which lottery winners are tricked or otherwise don’t benefit from their good fortune as much as you might think.
To avoid being taken advantage of, you should look for a competent lawyer who can advise you reasonably on all aspects of winning the lottery.
Listen to your gut. Find someone with whom you feel a personal connection. Someone for whom professionalism is paramount and who will act in your best interest. After all, you’ll be trusting him with your millions. Take your time until you find that person.
Winning Tip no. 7: Get your accounts in order
No matter how many zeros your account balance has, there is one thing that no one can escape: the hated taxes. So you have to prepare yourself as best you can. You are now wealthy and have considerable assets. Therefore, you should consult a financial expert to learn how best to manage your wealth.
You’ll want to first and foremost discuss how to take care of and eventually eliminate your financial obligations, such as your mortgage. Your financial freedom depends on how well you manage your assets. And you’ll want to make sure your loved ones’ futures are taken care of too.
As far as taxes are concerned, there are a few things to keep in mind. Winning the lottery itself is exempt from taxes. However, the use of the profit is taxable again. Thus, any subsequent income you earn from your lottery winnings (including interest income and any return on investment) must be taxed in the regular manner. So we recommend that if you win, you consult a tax expert you trust.
So it’s best to make a list and be prepared to discuss all these things with your financial advisor: taxes, inheritances, investment funds for your kids, etc. In other words, it’s time to think like a rich person!
Winning Tip no. 8: Build a nest egg
When it comes to planning your future, your age doesn’t matter. Even if you just turned 21, you should still think about tomorrow and how you can live your new life happily and comfortably without spending your fortune prematurely.
So it’s time again to think like a rich person. Rich people don’t spend money- not when you can invest it instead. This should be at the center of your financial thinking from now on. And if you don’t know where to start, you should begin your research.
That doesn’t mean you have to become a financial guru, but you should at least familiarize yourself with the lingo. That way you know what your advisor is talking about and can make your decisions accordingly. Remember that you are now in a position to invest in your future and the future of your loved ones. This freedom is a rare gift that should not be wasted!
Winning Tip no. 9: Take time off
It’s been quite a journey and by now you’ve probably spoken to so many accountants, bankers and lawyers that your head is about to explode. Good – you’ve done your homework, now let’s have some fun start!
Take some time off. Travel to a place you’ve always wanted to go, but couldn’t afford until now. Make yourself comfortable on a beautiful beach. Think, reflect, meditate and, most importantly, relax. This is what your life is all about from now on. Once you’ve taken care of all the little organizational details, you can relax and enjoy the rest of your life.
Winning Tip No. 10: Give something back
Always remember that the source of your wealth is your luck in the lottery draw. Share this good fortune with others, especially those who are eager to see their luck change. Simply handing out money indiscriminately is not the answer, of course. As with everything in life there is a right way and a wrong way.
Therefore, always make sure your generosity meets your own terms- in the end it is your money.
ÜHaving a financial advisor to help you manage your wealth is an added defense mechanism for you. This barrier will keep others from asking you directly for money. You must be firm and insist that gifts and donations go through your advisor and are accurately accounted for. Otherwise, this issue can become very stressful and strain relationships with family and friends.
Accountants and lawyers are not tormented by guilt when they refuse requests for money. Therefore, they must be the first point of contact for you and decide whether you should give away or donate sums of money. They will also be able to show you how to get tax breaks through charitable giving. They can also help you build and manage your own mutual fund, trust or foundation.
What happens after winning the lottery?
To be a true winner, act like one! Socially hanging out with other millionaires can be an extraordinary learning experience, as they already have a comprehensive understanding of financial and investment principles. For millionaires, the high standard of living is simply everyday life.
Suddenly going from a mere mortal to a millionaire is, as we can all imagine, a particularly exciting experience. So always think of it as a learning process (you never stop learning)!), who can also help you become a better person.
A basic tip if you have won the lottery is always to Control your money to have, instead of letting your wealth control you. Don’t let your winnings change you. Instead, allow your fortune to change your life and the lives of others for the better.
And remember you are still the same person you were. The only difference is that you are now much wealthier.