Despite the various Powerball jackpot and lesser prize amounts, becoming a millionaire is life-changing.
(And Here's What Powerball Winners Should Do to Prepare)
When you play Powerball, you hope to be a big winner. And you likely already have ideas in mind about what you’ll do with all those millions. You might even be mentally preparing for a bigger house, a new car, and paying off debts. But there is more to prepare for when you’re dreaming of becoming a millionaire. That kind of newfound wealth, whether it’s $1 million or $100 million, will change you and everyone around you. Here’s what you can expect and some nuggets of advice about how to prepare.
Word Will Get Out
The first significant change to impact your life after winning all those millions in Powerball is notoriety. Even if you live where claiming your prize anonymously is allowed, word will get out about your jackpot. And if you can’t claim anonymously, prepare to be thrust into the spotlight. There might be headlines in the local paper or on local television, making your name known as a millionaire. Be prepared to be recognized at the coffee shop and random acquaintances coming out of the woodwork eager for a handout.
Spending Comes Easy
For some, it’s hard to imagine having $1 million, let alone several millions of dollars, in the bank. And it’s that lack of perception that can lead to overspending. Prepare to wipe out your debts and overcome hardships in an instant. But also prepare for that money to eventually run out if you’re not careful. Roughly 70% of all winners either lose or wastefully spend all their winnings within the first five years. If you don’t want to become an overspending statistic, continue being frugal and knowledgeable about your spending. And get the professional financial advice you need to help you if you can’t quite wrap your head around your Powerball jackpot-infused bank account.
Friends and Family May Become Exploitative
When word gets out among your closest circles about your millionaire status, prepare for all the favors. And after a while, you’ll become frustrated about the constant asking for handouts. Those who’ve previously won and shared stories warn that they quickly became cynical with all the exploitative behavior. Prepare yourself by communicating with those closest to you about what you plan to do with your wealth and draw boundaries about gifting cash and offering loans.
Prepare for All the Money Questions
Past Powerball winners share frustration with all the money questions. You’ll be shocked at just how many people ask you about what you’re spending your millions on, where you save and invest, and how much of your prize you “have left.” These aren’t questions that any polite human would ask anyone else, but there seems to be blurred lines about it being ok to ask someone who’s recently taken home a jackpot prize. Don’t feel compelled to disclose anything you’re not comfortable sharing. And you can always deflect by referring them to your financial advisor for tips on how they can handle their money.
Your Social Circles Will Change
When you have the ability to afford cruises, vacations, concerts, and trips, you’ll be eager to experience it all. But because your friends won’t be able to keep up with those social excursions, they won’t be able to hang out as often. And while you’ll feel compelled to pay their way, you know it’s not a habit you want to make. As a result, at least for past Powerball winners, the friend circles begin to change as you make new acquaintances with those who can afford your newfound lifestyle with you.
When you play Powerball, you dream big about winning the jackpot and becoming a millionaire. Just remember to also prepare for a lot of things to change along with your bank balance. You’ll change, too, and these tips can help you know what to expect.