There are so many games, like the lottery, that we play with the hope of becoming millionaires. But are you prepared in case that happens? What would you do with the money? Knowing what to do if you win the lottery is essential to not end up bankrupt. Interested in learning more? Keep reading below.
Whether you have a lot of money or a little, it’s essential that you know how to manage your finances well. If you don’t manage your finances wisely, you can end up losing everything, even if you’ve made millions.
Statistics show that 70% of lucky lottery winners end up spending it all within five years. What’s more, many of them end up in debt. For example, if they bought a very expensive house with the prize money and don’t have enough money to maintain it.
We’ll look at what to do if you win the lottery so that your dream prize doesn’t lead to a nightmare situation.
From Pauper to Millionaire in the Blink of an Eye
How Do I Get the Prize Back?
In the case of a lottery win, for example, prizes can be collected on the afternoon of the draw day. In case you are going to collect less than two thousand euros, this can be done in a lottery administration. However, for larger amounts, the tenth winner must be presented to a banking entity.
How Much Is Left?
The State Treasury will retain 20% of your total prize amount before you collect it. You won’t have to manage anything. In addition, you will have to enter your winnings on your annual tax return, in the appropriate box for capital gains and losses.
How to Make Most of Your Winnings?
Here are some tips to help you better manage the money you’ve received. The goal is for you to make the most of it while ensuring that you always have a cheap mattress to support you.
Be Discreet
Every year we see hundreds of people on television celebrating their lottery win. While it’s normal to be very excited when you win a prize, it’s best to be discreet and tell as few people as possible.
If you share your good fortune publicly, it won’t be long before your friends and family come knocking on your door for financial help, telling them it can’t cost you much. It’s not about being selfish, but it’s also not about spreading your money around to people who may not deserve it.
Avoid Excess
When you have a lot of money in the bank and have had no trouble earning it, the temptation to splurge is great. For example, average Grandpa dreams of buying a high-end car if he ever wins the lottery, but he knows that may not be the best option.
It’s good to indulge yourself, but don’t go too far. If you end up buying a fancy car, a house and all sorts of luxury items, you’ll find that the money starts to slip through your fingers and your wealth level drops dramatically.
You need to control your spending and use money wisely. Live better, but don’t adopt a standard of living that you can’t sustain over time.
Invest the Money
Without a doubt, the best thing to do when you have money is to work to keep it growing, and for this investment appears to be the best alternative. The key is to diversify your money between different investments, combining riskier products with others that are less risky. If you don’t have a lot of knowledge in this area, the help of specialists will allow you to make your money grow without worrying about anything.
Knowing what to do if you win the lottery is important, but you already know that the chances of winning a prize are very slim. You can’t make your financial freedom depend on a hypothetical prize, so it’s best to work on your finances every day. Even with an average salary, you can save for your future. The key is to have a good financial education that allows you to make the best decisions.