Winning any kind of prize is something that many people never have the chance to do. If you have recently discovered that you have won one of your state's lottery prizes, you are in rare company. However, roughly 70% of winners end up spending their money or losing it within five years. Here are some actions to take so that you avoid that fate.
Avoid Telling Many People
When you realize that you have a winning ticket, you may be tempted to tell everyone you know. However, sudden accumulation of money can lead to calls and visits from all kinds of people, especially distant relatives and old friends that may ask you for money. You may discover you are being sued in a frivolous lawsuit or your creditors want to discuss things with you. Not only that, but reporters may show up on your doorstep to broadcast both your name and your address to large numbers of people on television or radio.
To avoid requests for money, make sure that you only tell immediate family members about your winnings until you have had time to retain a lawyer and a wealth manager. You may even decide to stay with a relative or leave town for a while so that you can avoid those who show up at your door. Depending on the state you are in, you may be able to keep your name completely private so that the media and others don't find out; talk to your state's lottery office to determine if that is the case.
Give Yourself a Budget and Allowance
There may be a strong temptation to run out and make big purchases when you have won a large sum of money. It is difficult to stop spending once you start, so you need to get serious about giving yourself a budget to work with.
Sit down and think about your monthly bills and what your expenses would be if you bought the house, car and other items you want to buy. Consider enlisting the help of your wealth manager to give you a strict monthly allowance so that you don't end up squandering your entire prize too early.
Use the information in this thread to help you after winning a state lottery prize. Work closely with your private wealth management adviser who can help you protect your winnings and build even more wealth over time, instead of losing it all.