Things to Do if You Win a Lottery

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Have You Ever Won a Lottery?

If not then I am here to tell you guys about some Dos and Donts if you do end up winning a big sum of money one Day. Now you may be wondering how am I capable of commenting on something like this, and the reason is simple, my Dad won the Lottery a couple of times and he made a few mistakes that I am going to talk about. Now bear in my mind I am not talking about the Jackpot prize but all the other prizes that are available in Indian Lottery Scenes.

Protect Your Privacy

Even though our first instinct is to tell everyone that we won money in the Lottery that could do us more harm than good. Once people know that you have Money you may be greeted by a lot of people that you know asking for some Financial Assistance and even worse there might be people willing to do you harm as well. I know a couple of Districts in our State where people literally sell their Winning Lottery Ticket at a Discount and leave the State in fear for their lives. So yeah protecting your Privacy is an ABSOLUTE.

Think Rationally

If you are a normal human being with not a lot of money then chances are you have imagined how you are going to spend a Million Dollars if you get some. But if you end up getting that amount you should be very rational about what you do with it and calculate where you want to spend every penny that you have made. Don't just waste all of it on Parties and Booze.

Plan for Your Taxes

Now I am not sure how taxes work everywhere around the world but when you are winning say 1 Million Dollars a huge chunk of it will be going towards Taxes and if your Tax is not deducted at source then you should immediately park some amount aside for future purposes when you have to eventually pay your taxes as that is INEVITABLE.

Invest for Future

When you win a Lottery you are basically a long way ahead in the Financial Freedom Journey so now all you have to do is Invest in Low Volatility Stocks with nice Dividends and you are all set for your Future. Another safe bet would be to Invest in the Nifty 50 or S&P 500 which are the benchmark Indices for Indian and US Stock Markets. This way you will be set for a Financially Independent Retirement Life.

Don't Quit Your Job

This is something a lot of people do immediately when they win a large sum of money as they feel that they have made it in Life and there is no more need to work a single day in life, which is actually pretty wrong. For starters, you should always keep your Job as that keeps you Sane and the second reason is that you never know when that extra Cash you earned just poofs and disappears, and then you are left with a GAP in your Work Life Resume which could be a pain when you are on the lookout for Future Jobs.

Diversify Your Winnings

Once you get the Money of your Lottery Winnings it is very very Important to Diversify your Winnings into various Assets either Stocks, Bonds, Crypto, or Real Estate. It doesn't matter what ratio you put your Investments in but I would suggest focusing more on DEBT BONDS which can give you moderate returns and is pretty safe.

Pay off any Debts

If you have any Debt in your life whether it is a Home Loan or a Car Loan make sure to pay it in full. The Bank Officer will scare you by saying that if you pay in full then that will incur extra charges but rest assured the charges they will levy upon you will be less than the interest you would have to pay to the Banks. So yeah definitely pay off all Loans and Mortgages in your life.

Apart from all of the above things to do after you win the Lottery, there is something else as well. I would ask everyone who dabbles in Lotteries to keep a ledger of all the money you have made and all the money you have spent and make sure that the deficit you are having is not a whole lot so that you can recover. This is a Slippery Slope and once you get the taste of Winning it grips you tightly and then you are hooked to the Act of Lottery Business.