10 Smart Things To Do If You Ever Win The Lottery
Each person has a vision of how to spend a chunk of cash in the event of a big lottery win, but are these ideas actually realistic? A more important question is whether or not these ideas are financially smart. Here are a few ideas that will set you on the right track for your inevitable lottery win:
1. Keep it a secret.
You do not want to blab about your winnings to every Tom, Dick and Harry that you meet. That would be the surest way for people to take advantage of you, even if they are family members.
2. Hire a good lawyer.
This is a smart business move, especially if you find an attorney who specializes in finances. Speaking to a few financial advisors is probably well worth the cost too.
3. Pay your taxes!
It is common to hear about lottery and reality game show winners being sent to jail because they refuse to pay their taxes. All winnings are taxable so you must be prepared to pay the piper. In the same vein, it is a good idea to pay off all your debts too.
Explore that career you always wanted to pursue but never could because you had to go to work to support your family. Stay home and write that novel. Take a course in underwater basket weaving. The choice is yours.
5. Design your own spa.
Treat yourself. Custom design your own spa. Hot tubs are incredibly relaxing and romantic. Get that massage table you have been eyeing for months. Everybody needs to relax.
6. Avoid Drastic Changes.
Avoid making any sudden changes to your lifestyle in the first few months. It may be tempting to buy your dream house, quit your job and start test driving luxury cars, but this is really not a good idea.
Investing does not sound very exciting, but earning money certainly is. Maintain a diverse portfolio and speak to an expert about making wise financial decisions.
Set a budget – and stick to it. If you are not meeting your budgets on a regular basis, consider that you may be living beyond your means. Think about your long-term situation.
9. Plan and Arrange.
Plan your estate and will, including taxes and funeral arrangements. If you do not make these arrangements, someone else will be deciding important details about what happens to you and your estate, arrangements that you may not like or approve of.
10. Give Something Back.
Give back to the community. A charity or local organization that you believe in would love to receive a gift and could put some of that money to great use.
Ultimately, the winnings are yours to spend, whether you choose to splurge or invest. With some proper planning, your winnings will go much further.