Would winning the lottery simplify your personal finances?

by B Simple

in Mindset, Planning

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We all wish it would happen to us one day.  We dream what our lives would be like and all of the things we would buy and the vacations we could take.  But would winning the lottery really simplify your personal finances. It will help you paid off some debt and depending on the amount of money you win you may be able to quit your job. Will paying off debt and quitting your job solve your financial issues?  For some maybe.

However, winning the lottery is a dream many have.  Its the way some feel is the only way they will be able to solve their financial issues. But if you do not properly manage your finances now how would you be able to manage your finances if you won the lottery?  It will not matter if you win the lottery  your financial habits and issues you have now may only get worse.  Even if you won the lottery you would still need to manage your money properly.  Winning the lottery would still require you to:

Set financial goals and objectives – You must know where you want to go.  Do you know where you want to be in one year, two years, or five years from now.    The goals and objectives you establish will be the financial foundation you will build upon.  Without setting financial goals and objectives it is like going on a road trip without a road map.

Establish a budget – Yes you will still need a budget even if you win the lottery.  You can have a bigger budget but you will still need to have one.

Monitor your cashflow – By having a budget you can monitor your inflows and outflows.  You will need to monitor if you are spending more money than you are earning especially if the interest earned on your lottery winnings will be your only source of income.  If you spend more than you are earning regularly you will end up running out of money.

Hire financial advisors – You will definitely need to hire at least an accountant to prepare your taxes and a financial advisor to help you invest your winnings.  You will not want to do this on your own.  Let the experts help you.

Put a estate plan in place – Winning the lottery can have  significant consequences on your estate if you do not properly plan for it.   Your winnings can impact your children’s and grandchildren’s financial future so you want to plan properly if not uncle sam may end up with a significant portion of your winnings upon your death if you do not have a plan in place.

See managing your lottery winnings is no different than managing your current personal finances.  The only difference is the number of zeros on your account balance.    So why not begin to simplify your personal finances just in case you may win the lottery one day.

What are your thoughts would winning the lottery simplify your personal finances?

We all wish it would happen to us one day.  We dream what our lives would be like and all of the things we would buy and the vacations we could take.  But would winning the lottery really simplify your personal finances. It will help you paid off some debt and depending on the amount of money you will you may be able to quit your job. Will paying off debt and quitting your job solve your financial issues?  For some maybe.

However, winning the lottery is a dream many have and its the way some feel is the only way they will be able to solve their financial issues. But if you do not properly manage your finances now how would you be able to manage your finances if you won the lottery? Even if you did win the lottery you would still need to manage your money properly.  Winning the lottery would still require you to:

Set financial goals and objectives

Establish a budget

Monitor your cashflow

Hire financial advisors

Put a estate plan in place

These are things you should be doing now and you have not won the lottery yet.   So if you are not doing these things now how would winning the lottery help you simplify your personal finances.   You will probably say I will have more time to do these things since I will be able to quit my job, or I can hire someone to do those things, or my favorite I will never run out of money.  It does not matter how much money you have you must set financial goals and establish a budget if you want to simplify your personal finances.

What are your thoughts would winning the lottery simplify your personal finances?

{ 5 comments… read them below or add one }

Money Funk

Nice post. And you’re right, definitely need a plan/budget for when you win the lotto (my husband says he feels it in his bones that we are suppose to win big one of these days *cross fingers*

These guys are definitely going to need it! ;)
.-= Money Funk´s last blog ..Menu Plan Monday =-.

nick

It probably wont simplyfy our finances, but will make you more relaxed about things!

No need to worry about going to the shopping mall, and thinking i cant afford anymore!
.-= nick´s last blog ..Lottery Syndicate – Join & have a GREATER chance of winning the Jackpot! =-.

Euromillions Tips

Your personal finances need to be controlled no matter how much money you have in the bank.

Managed correctly a jackpot lottery win should enable you to be financially secure for the rest of your life.

Handled poorly without control even a large lottery win can be squandered away to nothing.

The first thing to do is use the financial advisors recommended by the lottery.

They can help you to decide whether to work or retire, how much support you can give to charities and family members.

By all means have a party to celebrate and book a holiday, but after the initial excitement you need to organise your money so that you can live happily ever after.

Of course if I win big on the lottery I’ll take a few financial advisors with me on my holiday.

There is no reason why you cannot take advice and relax on a beach at the same time!

Lottery Guy @ Lottery Tips

Fact is too many jackpot winners somehow manage to blow all their winnings and end up back where they were.

It just seems impossible. But people who don’t understand how to control small amounts of money make exactly the same mistakes with big sums.

So if you really want to plan for you big win – it will pay you to get your head firmly around your finances now rather than later!
.-= Lottery Guy @ Lottery Tips´s last blog ..What Happens To Lottery Winners (Stay Anonymous)! =-.

B Simple

Thanks for the great comment. Your comments are so on point and quickly summarize my blog post.

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