Hardly a month goes by without one newspaper or another telling us about a jackpot lottery winner who has squandered their fortune and declared themselves bankrupt. That might sound like quite a difficult thing to do, but unfortunately it’s a lot easier than you might think. So how can a lottery jackpot winner avoid going broke? Read on and you’ll discover our top tips for managing lottery millions successfully…
Tip 1 – Don’t Splurge
Our first tip is to avoid the urge to splurge in a big way until you have had time to adjust to your lottery jackpot win. Lots of jackpot winners immediately spend a great deal of money on things that really aren’t good investments. By all means feel free to get yourself a new car and maybe a few treats to celebrate the win, but it might be a very good idea to limit yourself to spending no more than 5% of your jackpot in this way. That will leave you with a minimum of 95% to spend when you have had time to think things through properly.
Tip 2 – Take Advice
Unless you’re a financial expert it is generally sensible to take professional advice about what to do with your money to make it work for you but also keep it safe. Managing lottery millions is a lot more demanding than managing the average household income, so don’t assume that you can afford to ignore the advice that lottery-appointed financial advisors are more than willing to give you.
Tip 3 – Learn About Money Management
Although you should take advice from financial professionals (as we have just mentioned) you shouldn’t rely 100% on an advisor or let them make your decisions for you. Instead, learn about money management yourself. Buy a few books or audio programmes, or attend a few seminars that teach you how to make wise financial decisions that can help you to achieve long term security as well as capital growth. It’s your money so take responsibility for it.
Tip 4 – Be Protective
Winning a lottery jackpot will allow you to share some of your wealth with friends, family and any good causes that you like to support, but don’t fall into the trap of giving money to everyone who asks you for a hand-out. You will need to be protective of your fortune to a certain extent, because if you aren’t then you could well find yourself being taken advantage of by people who are just out to get whatever they can.
Tip 5 – Spend Wisely
Spending some of your lottery fortune on an item or commodity that is likely to increase in value or at least hold its value over the long term (such as property, gold and certain works of art) is a lot wiser than spending a lot of cash on items that are likely or certain to depreciate in value (such as cars, holidays and endless parties). That doesn’t mean you can’t invest in a few trivial luxuries now and again, but don’t make it a weekly habit or your lottery fortune could dwindle rapidly.
Tip 6 – Set a Budget
You might associate setting a budget with being frugal, but really it’s just being sensible. If you sit down and decide that you can afford to give yourself an annual allowance of £500,000 without your fortune dwindling rapidly, you can do so and enjoy that amount to the full. However, if such a spending pattern would make you go broke in ten years time then you should budget to live on a smaller annual allowance so that your fortune remains intact for the long haul.
None of the tips presented here are 100% foolproof, but they can certainly help you to reduce your chances of going broke and start managing your lottery millions effectively. Now all you have to do, if you haven’t already, is win yourself a jackpot!
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