While playing the lottery is a lot of fun, it should never be used as a means of getting through life. However, if you do happen to gain a tremendous amount of lottery winnings, you will most likely want some sort of budget planning. Here are some money management tips to help you make the most of your lottery winnings.
If you do win the lotto, do not shout to the world that you won. Rather, start by securing your lottery ticket. Photocopy the front and back side of the ticket numerous times, so you can show your lawyer, financial advisor, and accountant. It is a good idea to lock up the original ticket in a secured box. Do not do anything with the ticket or make any plans until you have a financial team of experts hired. It is also advised that you do not even sign the ticket until you have your attorney or another member of your advisor team look at the rules first.
For money management purposes, it is wise to not tell a soul that you have won. If you do, you will take the chance of having everyone asking to borrow money, or stating that they are a relative once removed.
It is also a great idea to write down any plans you have for your lottery winnings. Think about your personal goals, what your lifestyle is or how you want it to be, if you have any charities you would like to donate to, and what your family goals are. This is a good way to work on your money management skills while also doing some budget planning.
Speaking of money management, at some point, you will need to determine if you want a lump sum or annuities. A large sum of money will generally be approximately 60% of what your lottery winnings are. Or you could have it paid out over a set amount of years. Here you will want to speak with your financial advisor to determine if you want to grow your money even more, if it would be to your advantage to do annual payments or to take a lump sum.
Once you start to either receive your annual payments or the lump sum, it is best to get that money in the bank! It could be in your best interest to have several different banks or accounts, as the government will only insure up to $250,000 in one account.
You should also talk to your lawyer about the future. Estate planning is a good idea , as is forming a will. This will provide for your family once you are no longer there for them.
Many individuals will insist upon quitting their job if they win a large amount of money. However, keeping your job can keep you humble and provide a sense of self. Even if you do not want to work, you can still find a job with part time hours. Or you may desire to finally chase your dreams and do a hobby that could bring you some income.
By having budget planning in place with a money management team, you can be certain your lottery winnings can last some time. However, if you need assistance due to not sticking with a plan once your lotto winnings were claimed, contact Super Credit Repair in Clearwater, FL. They can assist you in maintaining a good credit score while providing you with some money saving tips.
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