How to make the most of your lottery winnings
When you win the jackpot in the lottery, it becomes a huge temptation to start buying all those new toys and start looking for that new mansion with the indoor swimming pool. But before you do any of that, you need to prioritize your lottery winnings to make sure that you take care of what is pending before you do anything else.
Clear Your Debts
We all know that debts hound us and follow us around. Debts are always pending and need to be paid off. So the very first thing you need to do is pay off all your debts. Don’t spend any of your money until you are 100% debt free. That includes auto loans, mortgages, current or outstanding payday loans, credit cards, student loans, a second mortgage, and any other debt you have. When you become debt free, you have a more clearer head to work on the next few items of lottery win prioritizing.
Make sure your bank or chosen financial institution is aware of the win and your intentions to place it into their hands. The manager and a financial adviser should inform you of all your options, and ultimately you can deposit the whole cheque into your chequing account, but spreading it around will help to break it up and protect it more thoroughly. Using your own bank means they have a vested interest in keeping you as a customer and will ensure they provide you with the proper advice to maximized your win’s income potential and protection.
Be Careful of Big Changes
Don’t change your lifestyle at all. Once you do that, you will be on a spending spree. Keep up the appearances of getting regular paycheques from a regular job until you can leave it. Remember that big purchases need to be thought over very carefully so don’t go out and buy that new house or car just yet. Impulse purchases can turn out to be a bad thing. Remain the same old person you are and deal with your windfall in a calm and focused fashion
Have your bank set up an actual budget for you that releases to you only income-generated funds, not any of the principal win. This way, you can control your spending with the money the jackpot is creating for you. For budgeting purposes the bank can put limits on credit cards, debit cards, bank accounts, deposits, etc. Letting the financial adviser at the bnak have control over the money may seem counterproductive, but it create a great cushion for your future and help you decide what is important right now.
Setting up these priorities will ensure that your winnings are protected, you have access to your money while being restricted from any frivolous spending, and everyone you own money to, the bank, the car loan company, payday loan companies, Uncle Fred, and your best friend from high school who still teases about the five dollars he lent you, will be off your back and out of your hair for good.