We all dream about our lottery numbers being drawn in the next big Powerball jackpot draw. At the very least, you’ve probably daydreamed about how you’d spend the lavish fortune.
What you probably haven’t considered is how easily things can go wrong when you do win. The good news is, we’ve put together a list of the 8 worst things you can do after winning to help dodge these pitfalls when you do get lucky.
- Forgetting to Sign Your Ticket
If you have a physical lottery ticket, you need to sign it, preferably as soon as you get it. Can you imagine losing your winning ticket? If you haven’t signed it, whoever finds it can snag your prize.
- Telling Everyone You’ve Ever Known
If you win a big jackpot, chances are you’ll want to shout it from the rooftops, we get that. The problem with telling everyone you know before you collect your prize is that it puts you in real danger. Everyone who has ever done anything for you might just crawl out of the woodwork with their hands out for a little something.
There’s even the chance of kidnapping and ransom insurance.
If you’re able to, rather remain anonymous – at least for as long as you can.
- Forgetting Your Roots
A good-hearted lottery winner is one that stays in touch with their friends, family and culture. A greedy winner burns their bridges and lands up lonely. Sure, making a big change is appealing when your coffers are brimming with cash, but when you try to reinvent yourself, you’re at risk of psychological damage and alienating a lifetime’s support of people who genuinely care about you.
- Being Quick to Take a Lump Sum
Believe it or not, the majority of lottery jackpot winners end up broke, many within a few short years. Yes, $170 million upfront might sound more enticing than a payout of $300 million divided up over the course of your life. But there are some serious decisions to be made, and for this, you need a financial advisor who can guide you towards the best decisions for you and your future.
- Thinking You Can Manage Your Finances Alone
If you live from one paycheck to the next, do you think you’ll suddenly understand taxes, asset protection and investment? It’s not likely. Your drinking buddies probably aren’t your best bet either. Creating a respectable and experienced team is the perfect way to protect your assets against all types of threats, as well as protecting your estate should you become incapacitated or pass away.
- Spending Way Too Much
It’s almost an integral part of a lottery winner’s lifestyle to splash the cash, and of course, it’s all yours to do with as you like. Stay in the best hotels, eat the finest meals, buy cool things – it’s normal. But even if you have millions in the bank, it’s still easy to spend your way into financial woes if you fail to budget. Spend, just don’t lose track.
- Giving Away the Entire Pot
While this isn’t necessarily the case for most lottery winners, some people might want to be generous enough to give away almost all their winnings to charities and other organisations dear to them. You can certainly be generous without emptying the pot, though. Just imagine how you’ll feel down the road when something serious happens in life and you no longer have the means to fix it. Go ahead and be charitable, but don’t give away the entire amount.
- Attracting the Wrong Attention
If your lottery win becomes public knowledge, be very careful about new people that pop into your life. Especially if they ever ask you for cash. One American lottery winner paid the ultimate price after his win when a con artist won over his trust and landed up murdering him. Be cautious of who you let into your circle after your win.
All that being said, there’s no reason not to enjoy your win – privately and responsibly!
Make sure you’re in it to win it. Check out this week’s Powerball numbers at Powerball.ca.