Winning money can be both an exciting and daunting event. In order to make sure you’re making the most of your experience, here are a few things you should avoid.
Wanting to tell your friends/family about your good fortune is a natural inclination. According to an article written by Jon C. Ogg for usatoday.com, “If you win this much money, chances are high that you will to want to brag about it. How could you not? The problem is that telling everyone you know before you collect puts you in danger, and in more ways that just one. Everyone who has ever done anything for you now may come with their hands out asking for something, or worse. You probably have heard of kidnap and ransom insurance before. One recent lottery winner even became the victim of what appears to be murder. If you can manage it, and if your state allows it, try to remain anonymous for as long as humanly possible.”
Handling Money Yourself
If you win money, it is crucial that you reach out to a professional to ask for help. Many winners underestimate their taxes because they think they can handle everything. Find someone you trust who is well versed in the intricacies of the situation.
Failing to Plan
Have you heard the saying, “failing to plan is planning to fail”? This applies to your money in any circumstance; but, particularly when you win a large sum of money. Make a plan for your money. Write out your debts and determine which ones you’re going to pay off first. Make a list of things you may want to purchase and work to prioritize them. Figure out how much of your money you’re going to invest for your future. There are so many things you’ll have to figure out if you win a large sum of money. Your financial plan should be extremely well thought out especially if you want your money to last.
Spending it All
People who win money end up spending or giving away the entirety of their winnings in an alarmingly short amount of time. This is true for the vast majority of lottery winners. In order to protect your new- found wealth, you need to be extremely smart about the way you move forward with your money. Remember that you’re not a bank. Don’t start loaning out money or backing other people’s business ventures. Live your life similar to how you did before you won money.
Putting on a Show
Winning the lottery doesn’t mean you have to be super flashy. You can upgrade and improve aspects of your life and continue to be fiscally responsible. If you want your money to last, don’t worry about making it seem like your life is glitzy. Stay focused on the bigger picture.
Winning wealth is kind of a miracle. Make it last by avoiding these five common mistakes.