Congratulations! You won the lottery! You want to ensure your money lasts for the rest of your living life. Now, it's time for the money to work for you.
Congratulations! You won the lottery! Some will lose their mind and start buying cars, clothes, trips, or a big home. That’s fine, but slow down. Many people who win the lottery get spend-happy and are back in debt in just a few years’ time. You want to ensure your money lasts for the rest of your living life. Remember, you spent years living paycheck to paycheck. Now, it’s time for the money to work for you. Let’s go through some helpful tips on how to spend your winnings and hopefully win more!
Honesty and transparency with yourself are essential. Most have not experienced the opportunity to know how to gain financial literacy. If you’re one of those people that’s new to money management, it’s okay. Realize that’s not your strength, and don’t be embarrassed. You might need an expert to tell you what to do with your winnings to prevent you from blowing it. The key is to be honest with your intentions and prioritize. It’s your winnings; it’s perfectly understandable to be overwhelmed.
Find a Financial Consultant
Speaking of help, seek it immediately, especially if it’s a ridiculous amount of winnings. An expert will provide sensible advice, possible tax write off, and investment ideas to help you grow your money. Plus, they can even help you with how to pay off previous debt strategically. Trust that this will take some weight off your chest. Start your research here:
Start an Emergency Fund
While receiving the best advice from an expert can help, you should create an emergency fund soon as possible. Ensuring you are covered and prevent from going into debt again. Natural disasters and everyday struggles are around us. It’s always nice to know that you created a safe nest for yourself and your family. Doing so will deplete the scarcity mindset, the thoughts that creep up on us all the time, making impulse behavior easier. Nip that all in the bud and save up for those what-if moments.
Sink Your Funds
Since you’re in a saving mood, a nifty trick to managing your money for everyday purchases is sink funding. A sinking fund is a strategic way to save money for a specific purchase by setting aside a little bit each month or daily. Many of us hate the feeling of living paycheck to paycheck, and well, sink funding prevents that feeling. Try tallying up all your essential expenses, see how much you need for the month, and begin to sink fund daily. By the end of the month, you will have the following month’s expenses covered because you’ve been saving for the last 30 days. Again, it will prevent you from impulse purchasing like that extra Starbucks drink in the morning – and you’ll ultimately be able to save and invest more. Follow these tips for managing your winnings wisely and live out the rest of your days as a functioning millionaire!