Won a Jackpot? Here’s How to Manage Your Money

Winning a lot of money is a dream for most people who buy lottery tickets or play jackpot games. 

When you run down the list of the biggest bingo jackpots of all time, you may take a moment to imagine what it feels like to achieve such success. In a matter of moments, a person’s life can change immediately and for the better.

At least, that is what most people would imagine of jackpot winners. They do not realize that many lottery or jackpot winners in the past have made mistakes with how they managed their money.

These people were in a solid situation where they were able to gain millions in a matter of days. Instead of spending that money responsibly, they wasted it all in a few years.

Below are a few tips to help you manage your money and cleverly spend your jackpot winnings.

Hire a Financial Advisor

The best step that you can take after you win a jackpot is to talk with a financial advisor. You may think that an advisor is only trying to get their cut of your money, but most advisors these days only charge you fees if they are making a profit on your initial investment.

Hiring an advisor is a great way to split your winnings into several categories. You can use one part of the money for immediate purchases or upgrades to your lifestyle, while you can save some of the money for a rainy day. The rest of the funds should go towards long-term investments to ensure you grow your nest egg for retirement.

Buy a House

Property is the number one investment that you can make in any year, no matter how the market is performing. If you live in an area that is growing in population, or you want to move to such a region, then you are in luck, having won the jackpot.

You can easily make a downpayment on a great house with access to so much cash. Significant savings and investments mean the bank will offer you a good interest rate on your mortgage, allowing you to own your home and avoid paying rent for the coming decades.https://unsplash.com/photos/VxquFxru58U

Take a Vacation

When people read about jackpot winners and how they lost most of the money within a few years, they begin to fear spending any of their winnings. That is a mistake. 

You won a massive jackpot and deserve to celebrate alone or with the people you love the most. Plan your dream vacation, take steps to ensure you are sticking to a budget for the trip, and then go, enjoy yourselves and get a much-deserved break from your daily routine.

You can visit many great places, even if you do not want to spend crazy money on your trip.

Pay off Debt

If you talk with a financial advisor about your situation after winning a jackpot, they will likely tell you to pay off some of your debt. Either you can go over your existing debt with an expert or do it on your own.

The goal is to assess what money you have borrowed at a high interest rate. Pay off those loans first, and try to refinance the others at a lower interest rate. Ideally, pay off as much of your debt as possible, as it ensures you are not paying excessive interest on the principal balances in the coming years.

Take Care of Yourself First

There is a temptation when you win a lot of money to take care of everyone in your circle. Perhaps you are thinking about friends who need financial help or a distant relative in a similar position.

While wanting to help everyone is a noble feeling, you need to take care of yourself and your immediate family first. Set aside some money for charitable donations or giving to friends or family, but ensure the vast majority of your money is being spent or invested using the steps outlined above.

Taking care of your jackpot winnings is so important, as you do not want to let such a chance go to waste. You may never earn such a vast sum of money in one go – ensure it lasts a lifetime.