One of the most important parts of winning the lottery, isn’t about what happens before you have won, but what happens after you have won. If you want to be a smart lottery winner, make sure that you read, remember and learn from the following facts.
Generosity is the downfall of many lottery fortunes
It is a common misconception that the reason lots of lottery winners lose their money is because they spend it all on frivolous things that they can’t afford. Instead, one of the main reasons some lottery winners blow through their fortune is because they are too generous with it. Of course, you want to share your fortune with those closest to you, but 32% of lottery winners have reported that they regret giving away more than 80% of their jackpots to close friends and family instead of investing it so that the money could benefit them, and the people closest to them, for longer.
You should never deal with lottery winnings alone
98% of lottery winners who chose what to do with their newly found fortunes by themselves, without any external input, ended up losing it all within a few years. Once you are a big winner, the very first thing that you should do is hire a trustworthy accountant, financial planner, and money manager. These 3 people will help you make smart decisions with your money by helping you invest, save and spend, the appropriate amounts. This will ensure that your millionaire status stays put for many, many years to come.
How the money is paid out is almost more important than the amount
Everybody knows that once you win the lottery, you can choose whether to have your winnings paid out yearly over installments (for +- 30 years) or to have your winnings paid out as a lump sum. If you decide to have your winnings paid out as a lump sum, you are subjecting yourself to a huge amount of tax, because the tax will have to be paid for the entire amount all at once. It is very important that the lottery winner and a financial planner sit together and compare the overall yield that you will receive from either the lump sum or installment payouts before the winner decides how they would like to receive their money.
Quitting your job is not always a smart idea
As it turns out, just under most of lottery winners still keep a 9 to 5 job. 48% percent of winners decide to stay on at their current employment despite becoming recent millionaires. When asked why they would make this choice instead of just living the high life, the answer was mostly the same... they wanted to stay grounded, ensure that their finances keep improving, and didn’t want their lives to change too much.
Now that you know the facts, let us know what you think about them in the comments below. Don’t forget to tell us what you have learned!