Financial Planning

Tips on how to Manage Money when you Win a Lottery Prize



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If you play the lottery, there is a chance that you are going to hit one of the big prizes. It could be a prize worth millions of dollars. It might seem like more money than you could ever spend. Be careful how you think of it though because it can be spent a lot faster than you think. In fact, some people that have won millions of dollars in prize money have found themselves in bankruptcy court. It pays to know how to manage money when you win a lottery prize.


Here are some of the ways in which you should manage your money when you win a lottery prize:


Financial Advisor


One of the first things you should do when you win a big lottery prize is to hire a financial advisor. Don't even get the ticket cashed in before you talk to someone. A financial advisor will give you the best advice on how to manage your lottery prize money. You can make huge mistakes when trying to handle such tremendous amounts of money without someone who is trained to handle it for you. It is worth the cost of hiring someone to look after your finances when you have that much at stake.


Gifts


Don't spend money like crazy to give other people gifts. Wait until you have talked to a financial planner and be careful how much you promise to someone else. This can be money that helps you live a good life for the rest of your life and leave your family without worries when you pass away. Giving it all away at every whim will strip you of your money faster than you can turn your head.


Invest


Make good investments with your money. This will keep the money growing instead of disappearing. You can make the money last through your life and continue to grow long after you die for your family. It can be passed down from generation to generation so that your children and all heirs after them will never have any money worries. What better legacy could you leave your family than peace of mind from generation to generation?


What Not To Do


Managing your money when you win a lottery prize is one of the most important things that you will consider when the time comes. There are several things that you should not do when you win a large lottery prize. One thing is not to give away everything you have. Don't buy super expensive homes without considering how much the taxes will cost each year, not to mention the upkeep of the home. Don't buy everyone you know cars and don't go on too many vacations without considering the cost of them. Although it's nice to go on a shopping spree, it isn't a good idea to constantly go on shopping sprees without making sure the money is growing.


If you manage your money well when you win a lottery prize, you can truly make a difference in your life and all of your heirs and their heirs. There is nothing like financial freedom. Don't let others talk you into loans when you probably will never see the money back again. People think that because you have a large amount of money now that you should be able to hand over large sums all the time. Don't fall in that trap. That is the mistake that many people make right before they go to bankruptcy court.


 

More about this author: Jane Demerica

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