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?