Winning a lottery jackpot is many people’s dream, and if it’s yours, chances are that you’ve already imagined how you’re going to spend the money. Now, the magic day is here. You’ve double-checked your numbers and you are a lottery jackpot winner. You’re filled with excitement, and your adrenaline is pumping. Your newfound wealth brings with it financial freedom but also responsibility. So, how do you remain grounded and manage your fortune wisely? Here are some tips to help you stay calm while enjoying your victory.
Take a step back and breathe
If you haven’t already prepared yourself for what’s going to happen when you make a big win, now’s the time to take a step back and seriously consider all the implications of your new-found wealth. While you might be ready to book a world cruise or buy a dream mansion, it will pay, in the long term, to wait before you make any of these decisions. Many of the jackpot winners who are still enjoying their wealth many years after their win took several months to think and plan ahead before they even touched their winnings.
It's a good idea to give yourself some space. Book yourself a hotel and spend some time alone or with your closest loved ones. You can avoid telling anyone else about your win until you’re perfectly ready. Give yourself time to process your newly acquired wealth and how it’s going to change your life. Do your research. Looking online to see how other successful lottery winners have managed their funds may inspire you.
Know when to stop partying
During the initial rush of emotions, it’s only natural to want to celebrate your win. Whether you break out the bubbly at home or paint the town, celebrate responsibly. The last thing you want to do is squander away your winnings before you've even had time to prepare for your financial future. Give yourself enough time to enjoy your win and let off some steam before you get down to the real business of financial planning for your present and, more importantly, for your future. This may sound boring, but it’s key if you want your winnings to last for the rest of your life.
Talk to the professionals
Don’t expect to handle the responsibility of a lottery jackpot win all by yourself. You’re going to have to deal with taxes, trusts, future planning, investments, and donations. Talk to professionals who can help you, such as:
A financial advisor
A financial advisor, such as a fiduciary, is qualified to advise their clients on how to invest their money in ways that are beneficial only to the client. This means they cannot advise you to make specific investments that they will profit from. A fiduciary can recommend low-risk options for investment so that your money will be as safe as possible over the long term.
An attorney
One of the first things an attorney will advise you on is whether to use a corporation, LLC, or trust to protect your lottery winnings and minimize your taxes. A legal advisor can also help you plan what will happen to your assets in the event of your death.
A personal accountant
An accountant can help you manage your day-to-day funds, so you know exactly where your money is going. They can also help you with your ongoing taxes. It’s best to hire an accountant who has experience with large windfalls.
Get your finances in order
If you want to ensure that your winnings develop into lasting wealth, you must develop a financial plan. Your fiduciary will help you with this. Once you have paid off any debts such as your mortgage, car loan, and credit cards, it’s time to think about long-term goals. You may want to consider:
- Low-risk investments
- Trust funds
- An estate plan
- An emergency fund
Even if you have had a big win, you still need to live on a budget, particularly if you have opted for the lump sum payout. A good way to do this practically is to talk to your accountant about setting yourself up a monthly ‘salary’ so you can be sure you’re not going to exceed your savings.
Focus on your personal growth
Along with the excitement, you’re bound to have moments when you feel completely overwhelmed. At this time, it's important to focus on your personal growth so you don’t get so swept away that your mental and physical health is negatively affected. You can maintain your sense of direction by:
- Engaging in pleasant activities
- Meditating
- Take a spa day
- Listen to music that helps to calm you
- Exercise regularly
Staying grounded will help you reduce stress levels and maintain a balanced sleep schedule so that you don’t experience any negative impact on your immune system. It will also help you keep a clear head when it comes to making financial decisions.
Get together with your clan
Maintaining your social network is very important. Your closest family and friends can help to support you through the changes ahead. It’s important to devote time and attention to strengthening your close personal relationships. You can improve your connectedness by participating in group activities or taking trips together. You may also want to consider talking to other lottery winners so that you can learn from their experiences.
Give to a good cause
Many lottery winners believe that one of the most rewarding things about winning the lottery is the opportunity to make a difference in someone else's life by making a donation to a charitable cause. There are many different ways you can do this, including:
- Donate to an existing charity
- Set up a trust fund
- Found a charity of your own
There are many more benefits to making charitable donations other than reducing your tax payments. For example, when you donate to a local charity you are benefitting your local community, making more people aware of the cause, and encouraging others to donate their money or time. You can know that you are making a positive difference in other people's lives.
Set realistic goals
Personal goal setting is important when you’ve won the lottery if you want to stay on top of everything. Whether you’re thinking about goals for personal finances, making a difference, or improving your personal situation, how you go about setting your goals is crucial to their attainment. Whatever you want to achieve, your goal should have four important aspects. Think SMART:
- Specific: Keep your goal narrow and specific. The more fine-tuned it is, the easier it will be to develop the steps to accomplishment.
- Measurable: You need to be able to clearly see how close you are getting to achieving success.
- Attainable: There’s no point in setting a goal if it’s unrealistic, and there’s no way you can arrive at your destination in the designated time frame.
- Relevant: Make sure that each of your specific goals fits in with your long-term life plan.
- Time-bound: Give yourself an appropriate time to reach your desired outcome.
Setting goals the SMART way is a powerful tool for envisioning your ideal future and maximizing your motivation to make it a reality. Knowing exactly what you want to achieve and the steps that will get you there will indicate which areas you need to focus on and how to avoid any distractions along the way.
Take a breath of fresh air
One of the best ways to clear your head and put things back into perspective is to enjoy a dose of nature. Spending time outdoors can not only ease your stress and anxiety, but it can also improve your attention and lift your mood. Here are some things you can do outdoors:
- Walk a forest trail
- Go fishing
- Visit the beach
- Sail on a lake
Whether it’s a stroll through your local park or a hike in a nature preserve, numerous studies have shown that being outside improves cortisol levels, helps maintain healthy blood pressure, relieves muscle tension, and lowers your heart rate, all of which contribute to reducing your risk of cardiovascular disease.
Take some time out for yourself
Sometimes, the best way to stay grounded is to enjoy a little alone time. Solitude can help you to relax and forget about the pressures in your life. It also has more benefits:
- Stimulating creativity
- Building mental strength
- Giving you an opportunity to set goals
- Improving sleep
- Boosting productivity
Although it’s enjoyable to spend time with other people, spending time alone, without distractions, can also give you a chance to get to know yourself better. You can feel free to be yourself without any judgment or expectations. This doesn’t mean you have to become a hermit, but it’s good to keep a balance between your social life and your personal time.
Winning a lottery jackpot can be a dream come true, but it’s crucial to approach it with a level head and a clear mind. By celebrating responsibly, getting the best professional advice, and drawing up a sound financial plan, you can ensure that your new-found wealth not only brings financial stability but also fulfillment.
