There is no doubt that a lottery win changes a person’s life drastically.
After striking it rich, most winners set up or strengthen a business, donate to charity, help family members and friends, or just try to improve their life style in some way or the other. They never have to worry too much about how much a car or a house costs. For some people, a lottery win very often does not alter their life much. In fact they make a conscious effort not to change at all and continue with their existing lifestyle of work, living in the same house and even continuing with the same job however drab that might be! Many lottery winners are pretty responsible with their money.
But for others, the new found wealth they obtain overnight is quickly squandered and in the end leads to financial ruin. Financial experts say that around 70% of lottery winners squander their money within a few years and experience families rifts and friendships that are torn apart by the sudden rush of money. Lottery winners are generally clueless about wealth management, and may not even know the basics of sound financial planning. For some, the sudden wind fall is a burden; a constant struggle of having to say no to family and friends.
Planning Wisely for the Future
After a lottery win, it is very important to fortify your future with enough financial security through wise investments and savings. The right financial planning and legal advice is very crucial to adjust to life as overnight millionaires. Check out different investment options with the help of an investment advisor or portfolio manager. Weigh your legal options about dividing the winnings and opening bank accounts. Take some time to be alone or go on a vacation, away from the surreal environment, so you can think about what you want to do with your money, and make rational, sensible decisions about your future and the future of your loved ones.
You will have relatives, charitable organizations calling day and night for financial help. Though it’s wonderful to help friends and family and to give to charity, remember you can’t say yes to everyone. Find people and organizations you truly want to help, and only focus on those requests.
Reading up the experiences of previous lottery winners can help you avoid the pitfalls that they have gone through and learn what to do and what not to do. More than owning money, it is the sensible management of money to make it last for life that can make or break a lottery winner. At the end of the day, a lottery win should not just enrich your life, but should bring joy and happiness to the lives of some of your loved ones.
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