Guest Post

Loaded Lotteries

We all work hard to make a living. But every now and then you hear a feel good story about someone who walks into a newsagent, buys a ticket, scribbles some numbers down and wakes up a multimillionaire a week later. It’s not something most of us can count on but for those who stumble across the magic set of numbers and play the game for a bit of fun, an injection into the bank account is almost certainly a welcome bonus.

The biggest ever win in Australia belongs to four men who, over coffee in Melbourne, decided to buy a joint ticket for $32.70 each. They won $58 million dollars between them.

Everyone’s been asked ‘if you won the lotto, what would you spend your money on?’ Answers vary but one thing’s for sure – handling a big win like that is more of a challenge than people anticipate. If you do happen to pick those winning numbers heed these helpful tips:

  • Lie low: Don’t tell anyone until you have the money and it’s away in the bank.
  • Contact a lawyer and accountant: It may appear extreme but you need to weigh your legal options regarding keeping bank accounts and dividing the winnings. If you’re going to do anything, contact a trusted accountant or financial advisor to get advice before spending that magical cash injection.
  • Don’t jump the gun: You’ve won a large sum of money and have dollar signs in the eyes. Of course you want to celebrate and treat yourself. But if you’re savvy you’ll give yourself an initial spending spree and stash the rest away so (depending on the size of the prize) you can live on interest.
  • Keep working: You may be wealthier than you even imagined but work can keep you sane – even if it’s part time. If you didn’t love what you were doing, now’s the chance to study and change directions.
  • Gifting: It’s not an obvious thing to do, but to avoid gossip ask the recipients of those who receive gifts from you to sign confidentiality agreements that disclose the amount for five years.
  • Invest: Always diversify your investments – and buy smart. If you’re interested in property investment, look out for great options for home loans.  Even though you may have more cash than you ever dreamed of you may not have enough to buy that dream home outright and it can be helpful to use a mortgage calculator to consider just how many millions you can spend. At the same time, don’t go crazy. Remember to consider things like retirement plans and time deposits.
  • Donating: You’ve got a lot of extra cash in your back pocket so it’s worth considering a cause you feel strongly about and donating some funds.

Let’s face it. The chances of winning a large lottery prize are slim to none but if you do, you’ve got some tips that might hopefully help you along the way. The most important of all – in the interest of saving the best until last – is the age-old sage saying that money can’t buy you happiness.

This is a submitted guest post

 

Comments (3)

  • All good tips :) We knew of one couple who won big and the first thing they did was hire a psychologist because a lot of the goofs people make with a windfall are because of emotional spending. Having someone to help them sort out their reactions saved them from a lot of impulse spending and investments.

    Reply
  • First, you have to play in order to win! I play extremely infrequently. If I won, I would set up an educational foundation to award scholarships for a portion of the winnings. The rest I would invest to make sure I would have a very comfortable retirement.

    Reply
  • I think I’d keep working, but might be more of a freelance basis to allow more flexibility with traveling. I like the idea of donating and gifting as well. Thanks for sharing your tips.

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