Winning the lottery is a dream common to many. If you’ve ever fantasized about it, you’ve probably considered how you would spend the prize money as well. Interestingly enough, a large portion of lottery winners have been known to spend their newfound funds on virtually the same things. Here are some of their copycat purchases.
A study of over 3,000 lottery winners concluded the following, “The most popular use of lottery money was property investments. The second most popular use of the money was making investments to provide future income, while the third most popular use was to ensure financial security for children. Further down on the list were gifts to family and friends, cars, holidays, and paying off debts and mortgages.” Given this information, we can narrow down purchases into three major categories.
It should come as no surprise that one of the first thing lotto winners do is invest in property. When you have a massive influx of cash, it makes sense to purchase big ticket items first. This may come in the form of a new, larger home or a home in a nicer part of town. The right house can be a huge financial asset. It seems as though winning the lottery is the perfect excuse for people to move on up.
It’s a known fact that many people are broke within three years of their big lotto win. Those smart enough to invest in income producing projects are more likely to maintain their wealth for years to come. Successful investments come in many different forms. Fast food chains, golf courses, construction projects, sheet metal businesses, and rental properties are just a few of the places lottery winners have put their cash. There are many reports of people getting bored after they win big. They find that going back to work adds to their wealth while also making them happy.
The first thing you should do upon winning the lottery is secure a financial advisor. You will need help navigating the enormous sum in order to make sure you are setting aside enough for taxes, fees and other expenses. Your advisor can also assist you in making quality investments with your newfound cash surplus. You’ll want to put some money into a retirement account, but you’ll probably want to put some into mutual funds and/or Roth IRA’s as well. If you invest correctly, your money can continue to grow without you having to do anything. Talk about living the dream!
If you happen to win the lottery, hit the jackpot in Vegas, or come into a large inheritance, make sure to do your due diligence. Be an example of someone who responsibly handles the experience. Play it smart and hire professionals to help make sure you’re getting the most out of your money. In doing so, you can set yourself and your posterity up for financial success.