What happens to lottery winners

Won the lottery - what now?

Predicting the right lottery numbers to hit the jackpot is not that easy. Nevertheless, tipsters all over the world manage to clear away the lottery millions week after week. But what happens when you actually win the lottery? Countless players cherish the dream of winning the lottery. But if this really comes true, most of them have no idea what to do next. After all, years of dreaming do not prepare for reality. Don't worry, we provide all the answers to the questions that arise when you've finally won the lottery. Here you can find ten winning tips to prepare you for a millionaire!

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Winner tip # 1: stay calm and think

It is a unique moment in your life and as with all extraordinary events, it sometimes takes a while to become aware of the situation and to be able to process it. Therefore, it is better to proceed cautiously instead of rushing everything and hurry to pick up your winnings - because as soon as you come out as a winner, everything changes ...

First comes the disbelief, then the joy breaks out and champagne corks crack without end - the usual pomp with which one celebrates lottery millionaires. The highlight is the official handover of the winnings, often with an oversized check. And suddenly the exciting novelty is over and reality begins.

It may feel like a fairy tale, but it isn't. You have to realize that - preferably as soon as possible. Also, understand that winning the lottery does not automatically mean that you will live happily ever after. This still takes a lot of preparation.

Sure, you are incredibly rich now, but the first thing you should be clear about is this: Although your winnings are a huge chunk of money and the amount may seem staggering, it is not unlimited. So think deeply about what exactly you want to do with your winnings and plan your next steps carefully. Of our ten lottery winner tips, this one is possibly the most important of them all.

Winner tip # 2: stay anonymous

We are completely serious. Don't tell anyone about your lottery luck, at least not yet. You surely don't want to see your face in every newspaper, on the internet and on TV so that everyone can recognize you and beg for money. So if you are not sure how to deal with your newly acquired wealth, we recommend that you remain anonymous.

Even the most sociable celebrities will tell you that there is a downside to being famous. Lack of privacy, seething jealousy, threats, mean comments and malicious provocations on the Internet - all of this is the order of the day. You don't need that in your life, believe us. Nobody needs that.

Now you might be thinking, "But I can tell my family and best friends, right?" Our advice would be to wait until you are prepared for the consequences and have made the necessary legal and financial arrangements. The same goes for social Media - avoid the urge to update your Facebook status, you may regret it later.

First and foremost, as I said, it is a matter of exercising caution. Those who genuinely care about you and your well-being will appreciate your need for secrecy.

Winner tip # 3: Don't quit headlong

Beware of this faux pas at this early stage. Quitting head over heels is one of the most common mistakes made by lottery winners who can't wait to break all bridges behind them and thoroughly speak to their boss.

Even if you hate your work, it will help you keep your feet on the ground first and not go crazy. Your job brings you down from cloud nine and enables you to really appreciate your lottery luck. Nothing works better for understanding the real value of money than a gentle reminder of the drudgery it can be to bring food to the table at times.

Many lottery players, whose winnings are in the single-digit million range, overestimate how long their money can last. A house, a new car, an investment fund for the children, expensive vacation trips - it all adds up. In this situation, the only thing missing is probably a regular monthly income. So don't break these bridges yet.

Also, never underestimate the social aspect. Many winners who take early retirement suffer from loneliness and aimlessness. Take Jane Park, for example, who won £ 1 million in the UK Lotto when she was just 17 years old. She bought a house, but she was overcome by loneliness, which is why she rented out her first home and moved back in with her mother. She later even decided to take a part-time job at the local chip shop because she missed interacting with other people.

Winner tip # 4: Don't go shopping

For some lottery winners, the euphoria is so high that this is theirs Reason completely short-circuits, which leads them to go on epic shopping trips. Countless winners, young or old, are unable to get rid of their initial recklessness and plunge headlong into the champagne lifestyle without ever looking at their dwindling bank balance - until it's too late.

Evelyn Adams, for example, is a woman from New Jersey who managed the feat of winning the lottery twice (1985 and 1986), only to gamble away the entire winnings in the casino and ultimately have to live in a trailer park. But also on this side of the Atlantic there are numerous stories that have a lot to offer. Most notorious of all is the story of Michael "King of the Chavs" Carroll, who squandered his entire £ 9.7 million profit on expensive clunkers, fast cars and flamboyant women and is now lucky to have a job in a biscuit factory .

The tabloid press loves this kind of story, so gossip reporters eagerly pounce on all lottery winners, especially when they ultimately become losers. Before you do it but Monty Brewster from the US comedy To hell with the coals (1985), it might not be wrong to consciously turn away from your winnings for a certain period of time. At least until you are aware of how much money you actually own and understand how you can use your wealth profitably.

Winner tip # 5: make a priority list

Take your time and do some self-analysis. You now have the resources to do pretty much anything you want to do in your life - but have you ever really paused and wondered what exactly that is? Everyone has different dreams - now you can find your own.

The obvious purchases after winning the lottery include a big house, a fancy car - but do you think these things will really make you happy? Would you be satisfied if you lived in a large villa, isolated from the outside world? (Jane Park wasn't.) Do you really want to drive a luxury car that has nowhere to park for fear of someone damaging it? Perhaps you'd be a lot happier if you bought a motorhome to take on a road trip in the US like you've always dreamed of?

Remember, you don't have to impress anyone: just do what makes you happy. Although we live in a consumer-oriented society and are programmed from childhood to think that buying new, bigger, and more eye-catching things will make us happier, this is not always the case. Listen to your inner voice. What dream have you had since you can remember? What has always been at the top of your wish list? Which adventure attracts you? Once you have the answer to these questions, the next one is, what are you waiting for?

Winner tip # 6: Get legal advice

Dreams are wonderful, but now it's time for a reality check. Note that now that you have won the lottery, you are in a delicate position. Your profit makes you vulnerable to those who are only out for their own gain. There are countless films and TV series in which lottery winners are set up with lousy tricks or in some other form do not benefit from their luck as one might assume.

In order to avoid being exploited, you should look for a competent lawyer who can advise you sensibly on all aspects of winning the lottery.

Listen to your gut feeling. Find someone you feel a personal connection with. Someone who puts professionalism first and who will act in your best interests. You will eventually entrust him with your millions. Take your time until you find this person.

Winner tip # 7: get your accounts in order

No matter how many zeros there are in your account, there is one thing that no one can escape: the hated taxes. So you have to prepare for it as best you can. You are wealthy now and have a considerable fortune. Therefore, you should seek advice from a financial professional to learn how best to manage your wealth.

First and foremost, you will want to discuss how you can handle and ultimately eliminate your financial obligations, such as your mortgage. Your financial freedom depends on how well you manage your wealth. And you surely want to make sure that the future of your loved ones is taken care of as well.

When it comes to taxes, there are a few things to consider. A lottery win itself is exempt from tax. However, the use of the profit is taxable again. Every subsequent income that you generate with your lottery winnings (including interest income and any return on investment) must be taxed as usual. If you win, we therefore recommend consulting a tax expert you trust.

So make a list and prepare to discuss all of these things with your financial advisor: taxes, inheritances, mutual funds for your children, etc. In other words, it's time to think like a rich man!

Winner tip # 8: create a nest egg

When it comes to planning your future, your age doesn't matter. Even if you have just turned 21, you should still be thinking about tomorrow and how you can live your new life happily and comfortably without prematurely spending your wealth.

So it's time to start thinking like a rich person again. Rich people don't spend money - not when they can invest it instead. This should be the focus of your financial thinking from now on. And if you don't know where to start, you should start your research.

This doesn't mean you have to become a financial guru, but you should at least familiarize yourself with the technical jargon. That way you know what your advisor is talking about and can make your decisions accordingly. Don't forget that now you are able to invest in your future and the future of your loved ones. This freedom is a rare gift that shouldn't be wasted!

Winner tip # 9: take some time out

Getting here has been pretty tough, and by now you've probably spoken to so many accountants, bankers, and lawyers that your head is on the verge of exploding. Good - you've done your homework, now the fun can begin!

Take a break. Travel to a place you've always wanted to go but haven't been able to afford. Make yourself comfortable on a beautiful beach. Think, reflect, meditate and, most importantly, relax. This is what your life is about from now on. As soon as you have taken care of all the small organizational details, you can enjoy the rest of your life in a relaxed manner.

Winner tip # 10: give something back

Always remember that the source of your wealth is your luck in drawing the lottery. Share this happiness with others, especially those who are dying to change their happiness. Of course, just randomly distributing money is not the answer. As with everything in life, there is a right and a wrong way.

Therefore, always make sure that your generosity is on your own terms - it is your money, after all.

Having a financial advisor to help you manage your wealth is an additional defense mechanism for you. This barrier will keep others from asking you for money directly. You have to be tough and insist that gifts and donations go through your advisor and are accurately recorded. Otherwise this topic can become very stressful and strain relationships with family and friends.

Accountants and lawyers do not feel guilty about turning down requests for money. They must therefore be the first point of contact for you and decide whether you should give away or donate amounts of money. They will also be able to show you how to get tax breaks through charitable donations. They can also help you set up and manage your own investment fund, trust or foundation.

To be a true winner, act like one

Socializing with other millionaires can be an extraordinary learning experience as they already have a thorough understanding of finance and investment principles. For millionaires, the high standard of living is simply part of everyday life.

Suddenly going from being a mere mortal to a millionaire is, as we can all imagine, a particularly exciting experience. Therefore, always see it as a learning process (you never stop learning!) That can also help you to become a better person.

A basic tip if you've won the lottery is always to be in control of your money instead of letting your wealth control you. Don't let your profit change you. Instead, allow your wealth to change your life and the lives of others for the better.

And remember that you are still the same person that you were. The only difference is that you are much wealthier now.