Many people want to win the lottery to fulfill all of their dreams. They think the mission is accomplished after hitting the jackpot. However, winning is only half of the battle even though it was very difficult to choose all of the right numbers. The last hurdle is to figure out how to stay rich after winning the lottery.There have been too many cases where big lottery jackpot winners have gone from having everything to nothing. It isnt that hard to spend all of the money. Celebrities do it all of the time as well. That is why it is important for new lottery jackpot winners to make sure that they stay rich.
A big mistake that many people make after they become rich is to upgrade to a very lavish lifestyle. It is perfectly acceptable to upgrade lifestyle significantly after winning the lottery. However, it is important to not partake in the lavish lifestyle excessively. If a quarter of the net proceeds of the jackpot is gone in one year, the lottery winner may be spending way too much money. Spending a quarter of the winnings means the lottery winner will be broke within four years. That is why it is still a good idea to keep a relatively modest lifestyle. There is no law that says lottery winners have to buy a mansion and a yacht.
Another issue that keeps lottery winners from getting rich is to get into bad investments. With so much money, the best course of action is to have a very conservative portfolio with only few bonds and stocks. Most of the money should be in cash. With a big balance in the brokerage account, there is no need to take any risks in the investment markets. At the same time, it is a good idea to avoid participating in new businesses and highly risky investment ventures. Of course, investing in businesses of family or friends can be a great way to give help. But the focus should be to keep most of the investments conservative and safe. There is no need to take more risks financially since the lottery winner is already rich.
Being rich isnt just a financial thing. The scoreboard of life is not dictated by the amount of money earned or the amount of money in the brokerage account. Life is about spending time with friends and family. With so much money, there is no need to work. Work is strictly optional for many lottery jackpot winners. The money from the lottery allows winners to pursue their dreams, which often involve endeavors that make no money. Since money is not a concern anymore, the winner should live a rich life that is about a lot more than money.
The key to staying rich is hiring a good financial planner as well as a tax accountant. Make sure it is a fee based planner who wont be driven by commissions to inappropriate investments. Those who get financial planning prior to turning in the lottery tickets do a lot better job at staying rich than those who dont get any financial help until it is too late.
Posted in: After Winning the Lottery, How to Win the Lottery and tagged with: after winning, how-to, keeping your money, lottery, lotto, spending