What to do when you win the lottery – 6 steps to take
You’ve just won the lottery and while you may be tempted to blow it all, you should slow down first. It may be a little overwhelming at first but here are some first steps to keeping your feet on the ground:
Pay off your debt
The first thing you do after winning big is to pay off debt. Get rid of those loans with high interest rates. If you’ve won enough, pay off it all. Whatever you do, make sure you stop paying interest.
Keep it to yourself
Many people tell the world when they’ve won. Then you hear stories about lost-lost aunts and uncles asking for a hand-out. Avoid awkward conversations by keeping your new wealth a secret.
Tell your partner or spouse. Let a few trusted family members and friends know. Otherwise, protect yourself.
Invest your new fortune
You’ve won the lottery and you want to keep hold of this new lifestyle. Investing is the way to ensure that your money lasts. If you’ve won enough, you may even be able to invest it and live off the interest.
A financial advisor will help you decide where to invest. The most important thing to do is minimize risk. Make smart decisions and seek help.
Don’t change too much
Dramatically changing your lifestyle will multiply your bills. Don’t rush into any decisions, like quitting your job. Think carefully about that expensive new car or home.
Any changes you make should be considered wisely. Think about the long term. Will your lottery fortune be around long enough to sustain it?
Plan your future
If you have a plan for your money, you’re less likely to waste it. Now that you’ve won the lottery, you want it to last. Plan everything out and consult a financial advisor if necessary.
Pay your taxes!
Just because you’ve won the lottery doesn’t mean you have to stop paying taxes. Check out how much you owe on your windfall. What will your tax obligations be in the future? Talk to an expert if you’re not sure.
Control your impulses
It’s exciting to see all that money in your account. Be careful not to be tempted to spend it all at once. Enjoy your new-found fortune, but don’t go overboard. Keep to the plan you made, and your lottery winnings will last.