The Top 5 Mistakes Lottery Winners Make After Winning Jackpot

The Top 5 Mistakes Lottery Winners Make After Winning Jackpot

We all want to win the jackpot. I think that I want to win it most of all lottery players. Then again, you might be having the same opinion about yourself. There are people who win the all desired jackpot and they start to panic. This panic afterwards can cause a series of unfortunate situations. Spiderman said that with great power comes great responsibility. In the case of a lottery jackpot winner, with great jackpots come a lot of problems, that’s only if you don’t know what to do.

The pressure that comes with the jackpot lasts for a brief moment. However, it’s very intense. Once the dust settles you become a regular, rich person. I bet it feels good.

Spend It All on Luxurious Parties and Expensive Gifts

I must admit, if I win the jackpot I will throw a huge party. Everyone will be invited. However, that’s it. No more hardcore partying. After all, I’m just a regular guy who won the lottery. The reality is that a big percentage of lottery winners tend to overspend as soon as they cash in the winning lottery ticket. Parties become a regular thing that occurs on a daily basis. Furthermore, there are some lottery winners that like to show their generosity by handing out gifts. They don’t realize that this is their prize. The moment of a lifetime. Most likely there won’t be any other prizes of this magnitude. Cash is limited. The jackpot is limited. Once the dust settles, they realize they’ve spent a big share of the prize pointlessly, the money is simply gone. The saddest thing is that these parties and these gifts will be forgotten in a rather short time period.

Trying To Be an Investor – Let the Experts Do the Investing

Investing money takes a lot of experience, skill, knowledge, character and contacts. You can have all the money in the world and you can still lose it on the stock exchange. Now, imagine a person who won millions over one single day. This person now takes the cash and tries to become a successful investor. This person has no education in business, no previous experience, nothing, zero. 3 years after the jackpot this person is broke because he/she had no idea what was going on.

Now, lottery winner number two. This lottery winner is aware that it can’t do anything on the stock market, instead, this lottery winner puts the money in an investment fund, a trust fund as it’s commonly referred. In 3 years time, this lottery winner has increased its net worth by a large margin. Why? Because this lottery winner is smart. He/she approached big money appropriately.  There are people whose job is to invest

Some Lottery Winners Try to Avoid Taxes

Let me try to illustrate the situation. So you just won the lottery. You won millions and the authorities are aware of this. Instead of settling your account with the IRS you try to hide, thinking that they won’t get you. Believe me when I say they will get you, eventually. Maybe you can get away for a year, or two, but the IRS won’t forgive the millions of unpaid taxes. The first thing you should do is to pay the taxes. If you don’t want to end up in jail, or have the IRS confiscate your property, you better pay it as soon as possible. Once this is settled, throw all the parties you want, spend the money on whatever you want. You might as well ask for a professional advice from a CPA on how you can reduce the taxes. There are mechanisms which can make this possible, but buying luxurious cars is not one of them.

First thing’s first, taxes.

Being Too Generous to Friends and Family Members

I know that everybody likes to look good in the eyes of the closest people in their lives. However, even if you’re a lottery winner, handing out big amounts of cash even to the dearest people in your life is not always the best idea. Giving money to someone if they’re in need is a totally different thing. If you treat your friends with big amounts of cash and they spend it on stupid things, that’s like throwing your money in a well. You could’ve done the same. When people don’t earn the money, they rarely appreciate it and treat it appropriately. Hard earned money is what I’m trying to say.

Lottery winners usually appreciate the jackpots, but there are some who win the first prize right off the bat. These lottery winners are potential disaster. Experienced lottery players anticipate the win and know exactly what to do. A little generosity goes a long way, but a lot of it can end in disaster.

Going Public then Not Being Able to Take the Pressure

My advice to all future lottery winners, don’t go public. Try to keep calm and stay anonymous. The pressure can be severe. The media is ruthless if they sense that you can become a sensation. Being a celebrity is good on paper, but once you enter the shoes of one, you’ll be disappointed. Each and every move will be followed by the watchful eyes of paparazzi, random blogs, and if you do something way too stupid, you might end up on the news highlight. Don’t make a fool out of yourself.

You were a regular joe two days ago, why would you want to become something that you can’t get used. Certain lottery winners have passed away because they couldn’t cope with the pressure caused by too much media attention. Keep quiet, stay down to earth, pay your taxes as promptly as possible.