Imagine if you won the lottery, and you found yourself with millions of dollars all at once. After the initial disbelief that it could possibly be happening to you, your excitement would likely kick in. When you realize that your life will never be the same again from that moment forward, you are filled with hope and joy.
However, don’t think so fast. Studies show that people who win the lottery actually end up regretting what they do with all the money later on and often enter a depression. More often than not, lottery winners find themselves broke after a certain amount of time. So, how do you avoid the same fate? Take a look at some of the best ideas for what to do with your winnings if you were to hit the lottery jackpot.
One of the biggest reasons why people end up making decisions with their lottery winnings is because they act too quickly. It’s critical that you take a deep breath and consider what it is that you want to do with the money.
Coming into a large amount of money, although exciting, can also be very stressful. You may not have any idea how to handle that kind of money, so you make irrational choices that aren’t based on logic.
You may even want to consider talking to a professional financial advisor who can lead you in the right direction.
Keep Your Anonymity
Even though you may be tempted to shout your victory from the mountain tops, it’s vital that you don’t put yourself into a vulnerable position. The more people that know exactly how much money you’ve won, the more dangerous it can be. People may come up with a scam to get your money, or even trick you into becoming close with them with the intention of stealing from you. Rather than putting a target on your back, stay smart, and try to stay under the radar!
Don’t Quit Your Job
Even though a lot of people dream about walking into their boss’s office and announcing their retirement, don’t act so fast. However, a job can help you keep some sense of normalcy for a while. Acting too hastily can come back to haunt you later. Wait until you’re officially declared the winner and have money in your hands before you do anything crazy.
Don’t Forget About Taxes
It’s important to remember that even though it may seem like a lot of money, you’re going to have to pay taxes on it. The IRS is going to know about your winnings and tax you the same as they would anyone else. This can be upwards of 37 percent of your total earnings. Make sure that you don’t spend it all before paying the taxman!