We all want that windfall; instant riches from big wins! What would happen to your family if they suddenly got a lot of money?
Buying a “dream house” is listed as the number one purchase. If you win, will you share your good fortune and victory with your family members? Do you already know exactly what you will do with your cash, if you become the next instant millionaire?
Experience shows that those who have won millions of lotteries or huge windfalls, land into three main categories:
1. Those who never had enough money before winning;
2. Ordinary people who manage to maintain a normal normal life; and,
3. Those with plans.
Those in the first group, who never had enough money in their life, winning millions was the answer to their prayers, in the first place. Many have not learned or practiced good money management. Most believe that having lots of money will solve most, if not all, of their problems. These million dollar winners are now faced with managing large sums of money. Research shows that nearly a third of million dollar lottery winners actually go bankrupt just a few years after winning big.
The winners in the first group have done a number of things with their money. Some have invested in “schemes” and lost large sums of money. Some have staked their winnings. Of this group of winners, some became so generous giving money to their family and friends that they had to file for bankruptcy. A large number of these groups continued serious spending until their victory was exhausted. Most don’t realize that, after taxes, their winnings leave them with hundreds of thousands of dollars instead of millions. Most don’t know that winners also have to pay cash prize taxes of $10,000 or more for each prize recipient.
The second group of lottery winners usually keep most of their winnings. They invest and save their winnings and continue to live their lives as normally as possible. The group is currently enjoying their winnings and is only buying a minimal amount of new items with their newfound wealth. They are usually very low profile people. Judging by their lifestyle, you wouldn’t know that they are even millionaires.
The third group of winners are planners. Before their windfall, they may or may not have a lot of money. One thing they have in common is the knowledge that if they win, they need a plan. They understand that once they receive a lottery winning check, they have a huge responsibility on them. This third group, has taken the time, usually after they know they have won, and has met with consultants and financial planners to map out the best path to safeguarding, retaining and growing their newly acquired wealth.
Winning multi million is what many people imagine constantly. If everything is planned properly, winning large sums of money can and should be one of the most fun and freedom driving times of your life.
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Ann C. Wilson, Author
Ann C. Wilson writes articles and has authored a number of books. Read similar topics.