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Best advice from people who have won the lottery: the do’s and dont’s

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Many people dabble in the lottery or play online games, like on Slothino.com, just for the fun of it. Some keep on getting into it in the off-chance that they actually win. Many have won millions and lost everything in a blink of an eye.  

For people who have kept their heads when they actually won, here are some pieces of advice. 

Don’t announce it to the world; Do stay anonymous 

We all know how many have crashed and burned because of the sudden fame and fortune from winning the lottery, not to mention getting swarmed by people – family, friends, relatives, acquaintances, asking for some dole out or something. Depending on the state policies, check if you can keep your anonymity after winning to save you from all the brouhaha it can bring. Many relationships have been severed because of money issues. Don’t let it happen to you. Not only that, some people intentionally attack lottery winners to get money off of them. Some go the accident insurance route, some may take the legal action against you (former business partners, ex-lovers, disgruntled colleagues / employees, etc.). 

Do seek the advice of professional financial consultants 

Look for a tax professional, who can give you advice on all the different taxes you have to pay for your winnings. He/She can advise you whether to get the lump sum (all your winnings in 1 big pay-out) or annual pay-out (whether short-term or long-term). Then, talk with financial advisors who can help you determine the best ways to invest your money. And mind you, it is always best not to put your eggs in one basket. Diversify your investments. Your financial advisor can provide information on the wide variety of options available so you can make informed decisions. Do your own research as well. 

Do set aside funds

Think emergency fund, retirement fund, college fund, etc. You know your winnings won’t last long but, if you are smart about it, you can stretch it out for as long as possible. Let it work for you. This is where professionals can give you the best advice on how to save and where to save these funds so you can also get the best possible interest rates so they don’t lie dormant and not earn anything for you. By setting this aside, you ensure that everything is set for your family and loved ones in the future. 

Don’t change your lifestyle 

This is one of the main reasons why many jackpot winners have lost everything in just a short amount of time. Many just go crazy and buy things left and right without thinking. While it is OK to treat yourself and your loved ones from your winnings, always think of spending off of the income from your winnings, and not the principal. Many winners went ahead and quit their jobs only to go bankrupt in a year or two. By sticking to your lifestyle, albeit a little more comfortably, you keep things on an even keel and maintain a life of normalcy. 

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