A lottery is a form of gambling involving drawing lots for a prize. Lotteries are outlawed by some governments, while others endorse them to the extent of organizing a national or state lottery.
But what do you actually do with the money once you hit the Jackpot or at least win a sizable amount of money? Here are some tips to get you started.
What to do after you win the lottery?
1. Hire a lawyer or CPA
In some countries lottery winning are tax exempt, while in others they have to be taxed. You want to inform yourself on the taxation of your winning right away.
If you are not 100% sure how it works, please hire a good CPA or lawyer to take care of the taxes for you.
The big guys want their cut of the pie, so you want to make sure that everything is in order, all T’s are crossed and I’s dotted.
This will be the first step.
2. Splurge a bit
Go ahead and buy one big-ticket item for yourself. You deserve it!
Otherwise, enjoy whatever you do have or do. Most of us spend money on ourselves once every three months (or so) – so don’t deprive yourself of doing what you want with your money.
Plan your spending, and if you are nervous about how much money you will have in the future, then invest that small amount of money in a savings account until the time comes to use it (see above).
3. Start a Charity or help family members
People often use their lottery winnings for cars, lavish vacations, or to pay off accumulated credit cards. By giving away your prize to the charity, you are positively contributing to the community.
You can also set aside a fund for family members to help with their mortgage or debt payments. Keep it low-profile though, or you will have your 3rd cousin that you have never met leech on your for some dough.
4. Invest as much of your winnings as possible
You can invest your winnings in the stock market, real estate, and other investments to generate more money. Don’t always do what you want to do with your money. With this philosophy in mind, it is easy to see why so many lottery winners struggle with their wealth after a few years because they only use their prize money for one or two things.
Put your winning money somewhere, dont leave it in the bank and let inflation eat away at it. Invest is wisely.
Here’s a great starter source on how to invest.
For more tips on the lottery check out Play Home Win.
Hope you enjoyed this quick primer on what to do when you hit the big ticket. Stay tuned for more great tips.