We all have a dream where we win a lottery, or suddenly we get loads of money from winning on KBC and become a millionaire. Then we all think of things we would do if we had that kind of money.
What would you do? Would you burn cash like Pablo Escobar or invite Tom Holland & Zendaya to your party like Ambani?
From history and stats, we can see, on average, what happens when an individual becomes a millionaire overnight.
Estimated read time: 3 minutes and 29 seconds
Buckle up, here we go!
Winning a lottery is a dream that many of us share. The thought of becoming rich instantly without having to work for it is very appealing.
Now, getting rich is not only limited to winning the lottery. You might inherit some wealth from your parents or earn it through ESOPs. There are so many ways through which you can get rich instantly, but the chances are always low.
But let’s say luck favours you. You were in the right place at the right time and became a millionaire instantly.
What now? Statistics show that over 70% of lottery winners use all of their money in less than 5 years. This might happen to you as well.
Because earning money differs from managing wealth. And most people are not good at managing their wealth (that too sudden wealth). You might have also heard about how some KBC winner is broke now.
Because becoming rich, whether through a lottery win, inheritance, or some other windfall, can be overwhelming to know what to do with your newfound wealth. So, there are many lessons we can learn from people who have gone through this experience and prepare ourselves in case luck favours us.
Below are the lessons learned from past lottery winners or sudden millionaires.
Top 10 things to do if you win the lottery or get rich suddenly:
1. Keep quiet
It’s important to keep quiet about your sudden wealth until you have a plan in place. Or else your phone or doorbell won’t stop ringing. Many relatives and friends asking for help will visit you. You might get drained by these and make wrong decisions.
2. Take time to think
Don’t rush into any decisions. Take some time to think about what you want to do with the money and how it can best benefit you in the long term. Maybe continue your daily lifestyle as if nothing happened for 2-3 months.
3. Seek professional advice
Consult with a financial planner, an accountant, and a lawyer to get professional advice on how to handle your sudden wealth. Also, it’s better to educate yourself. If you are a beginner, you can start with this checklist.
4. Pay off debts
Use some of the money to pay off any debts you may have, such as home loans, student loans, or credit card debts.
5. Don’t quit your job yet
48% of lottery winners in the US continued with their day job. Most probably because the money gave them freedom, and they liked their job. You can change your job if you hate it, but don’t stop working until you have a plan.
6. Invest wisely
Invest the money wisely to ensure that it grows over time. Consider diversifying your investments and seeking professional advice. Think about your long-term goals, such as retirement or starting a business, and how your newfound wealth can help you achieve them.
7. Don’t splurge
We have read so many stories about people spending all their money in a span of a few months and then declaring bankruptcy. You don’t want to add yourself to that list, right? Set a budget for your expenses and stick to it. Don’t overspend or make impulsive purchases.
8. Give back to your community
Consider donating some of the money to charity or setting up a charitable foundation to give back to the community. Everyone has a different way of giving back to the community. You decide your path. After all, it’s your wealth.
9. Treat yourself
While it’s important to be responsible with your money, it’s also okay to treat yourself to something nice, such as a vacation. Don’t forget about your own happiness. It is easy to get caught up in the excitement of the win and forget about what really matters in life. It is important to take time to think about what will truly make you happy, whether it is travelling, spending time with loved ones, or pursuing a hobby.
10. Surround yourself with trustworthy people
Surround yourself with people you trust, such as close family members or friends, who can help you make wise decisions and avoid getting taken advantage of.
Getting rich suddenly can be a life-changing event, but it’s important to handle it responsibly. By following these top 10 tips, you can make the most of your newfound wealth and enjoy a comfortable and fulfilling life.
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