Winning a lottery is a lucky thing but hardly anyone knows the right way to spend a huge amount. So, we have the best suggestions to invest your lottery winning money.
Many people wonder what to do with the lottery winning money. Some plan to leave the job and go travelling, some dream of buying a huge house. Well, it’s a very personal decision but investing the money smartly is equally important. Let’s, have a look at what you can do with your lottery winning amount.
Smart Ways to Spend Your Lottery Winnings
Lottery winning is a two-faced situation. It can remove all your financial problems or can leave you in huge trouble. An example of Janite Lee is a lesson for all who won the lottery but ended with filing for bankruptcy and picking debit and credit cards along with gambling habits.
Although, everyone plans to spend their money wisely but as seen in records, there are huge chances to fall victim to social and financial pressure. It’s better to consult financial advisers to make 100% out of your lottery winnings.
Be patient, Do not spread the Good news fast
It is human nature to share the Good news with friends and family and if it is the lottery winning, the happiness goes to another level. But, be careful; don’t spread the news very fast. Many of your friends and family members can ask you for loans or gifts and you will feel guilty while saying No to them. So, better to plan first and then tell others.
Take your time before claiming the winnings
It’s better to plan how you want to spend your winnings and then claim your lottery. There is always an end date for claiming your winnings on the lottery ticket. Start planning and find the different ways to spend your lottery winnings and once you have decided then claim your lottery winnings at the last few days of your claim deadline.
When you own such a huge amount of money, everyone wants to follow you especially the organizations and institutions who want you to invest your money in their organizations. Also, the interviewers and many other channels follow you to make your happiness a liability. Better to plan beforehand how to deal with these people and stay safe. You can change your social media accounts and phone number or just stop using them for few months.
Divide your money into different accounts
Getting wealthy overnight is a matter of huge happiness for you and a matter of concern as well. Depositing the amount in a single bank account can raise many questions and also there is always a maximum limit for every bank’s account.
The solution is to divide your money into different bank accounts to avoid unnecessary inquiry and the unwanted attention of others on your amount.
Don’t leave the job
It’s great that you have a huge amount but remember it won’t last forever. It is not a smart choice to leave a job once you win a lottery. Better to Plan a new business or keep a small portion of winnings for hobbies. Extra earnings will help you to manage your finances lifetime. It will also keep you busy.
You can give charity
Such a huge amount of money can change your life completely and sometimes can leave you restless. Charity is a good source to attain peace in your life. Fix a yearly amount for poor people and you will be more humble and polite in return.
Hire financial consultant
Another best thing you can do is to hire a financial consultant who can help you with the most effective ways to spend your amount. They can introduce you to certain tax thresholds and assist you to decide accordingly.
The certified planners will help you to spend your winnings to upgrade your lifestyle along with investing for the future. It’s better to include an attorney in your team in case anyone tries to claim against you.
Clear your debts
Key to happy and stress-free life “No debt life”. It’s better to pay off your debts first. Start paying off with your high-interest debts first and then pay your resting debts. These debts include car payments, school loans, and mortgages.
Start an Emergency fund
When people have lots of money, they hardly think of saving the emergency funds but it is really important. No matter how careful you are but you can foresee what is going to happen next. By fixing an emergency fund aside can give you mental peace and it will be a great support in any unfortunate situation. It is advised to at least keep aside 6 months’ worth of living costs as emergency funds.
Go for low-risk investments
Now, you have fixed your amount for an emergency, paid off your debts, did charity, now it’s time to think about investment. This is the best option to multiply your money with a low-risk investment. Don’t go for volatile stocks. They are risky and can drain all your money if you make wrong choices. You can find options for safe investments like portfolios that represent a mixture of stocks and bonds. Also, real estate is a great low-risk investment option.
Spending smartly can help you to meet many purposes with play the Indian lottery winning and make the winning successful. Many people spend the lottery winnings only on fun and upgrading their lifestyle but the smart ones divide their lottery winnings smartly and spend them accordingly. They also have fun but without compromising on their other needs. Along with the above-listed ways of spending the lottery winnings, there are many other ways like saving for retirement or saving it in the name of your children to make their lives happy too. There are endless smart options that you can choose from while spending your lottery winnings, you must choose wisely.