Most people dream of winning the lottery, although the vast majority will never win. However, someone does win – and if that someone happens to be you, you should know how to make the best use of your newfound wealth.
So, let’s say you just won $1,000,0000 in a lottery. What would a smart money planner do to make the most of this opportunity?
What to Do If You Ever Win A Big Payout
1. Don’t go on a shopping spree
If anyone suddenly had a million bucks in hand, they’d be tempted to spend it – but resist that temptation! There will be time to spend your money later. You want to plan first to ensure you spend wisely.
2. Keep it quiet
If at all possible, keep your winning out of the news. Lotto winners will become targets of scammers, moochers, and more. The fewer people who know about your windfall, the better.
3. Pay your debts
The best thing you could do with a windfall is pay off all your debts – even if that eats up a lot of the cash. You will save so much money in the long run when you’re no longer paying interest on things such as your mortgage or school loans.
4. Use money planner software to understand your future expenses
A million dollars isn’t what it used to be. Before spending too much, use a money management tool to understand what your overall expenses will look like moving forward.
5. Shop for quality, not flashiness
Another typical mistake lotto-winners make is to immediately buy flashy products such as sports cars or top-end clothing. This is another way of turning yourself into a target. Also, a lot of flashy products don’t last long. Spending your money on high-quality, long-lasting goods is smarter.
6. Invest, don’t spend
Sure, you will want to buy yourself a few “toys.” But you really should try to invest as much money as possible. Put the money into safe, reliable investments such as government bonds. This way, it’ll grow into even more money over time and be there when you’re ready to retire.
7. Don’t gamble
Your odds of winning the lottery are a million-to-one (or more!). Smart money planning with the help of budgeting software will help you spend your money wisely. Lotto tickets are a waste. Use the money to invest in yourself instead to develop talents and skills to improve your overall abilities and potential for increased income.
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Even though you may not win the lottery, now you know how important it is to budget and save. So, click here to try a free trial of CalendarBudget!