Imagine this: you are sitting on your couch with a giant bowl of popcorn that you popped with that popcorn machine you got for Christmas. You flip the TV on, while clutching a torn sheet with a series of numbers written on it. You start listening to the newscaster, hardly daring to breathe, as you hear your numbers called out one by one. Your eyes widen. You can’t believe it. You double check the numbers on the screen. Sure enough, the numbers are the same. You’ve won.
This is a scenario that many have imagined. This is a scenario that has only come true for a few.
In this post, I will talk about the 5 top things you should do if you win the lottery.
1–Pay Off All Your Debts
The first thing that you should do after getting a windfall of money is to pay off all of your debts. Pay off your student loans, your car loan, and your mortgage. Your credit score will go up but most importantly you will feel better. Having debt is equivalent to being shackled to a person or corporation. Having debt means that a percentage of your paycheck each week or month does not belong to you. Having debt means that you are not 100% free to do with your money the way you want. Having debt means having no freedom.
2–Buy A Rental Property or Two
Once your debt is paid off, then hire a real estate agent to help you to find a property that you can purchase. If you can purchase a rental property, then you can use that to generate more income. Furnish and decorate a rental property and then decide if you are going to do a short or long term rental. Both have their pros and cons. Whatever you decide, having a rental property means that you are practically guaranteed a set amount every week or month. That’s a $1000 to $3000 a month of passive revenue.
3–Invest In Some Stocks
Besides purchasing a rental property or two, you should also invest in some stocks. You could choose to purchase individual shares of stocks. Or, you could invest in index funds or mutual funds, which are a safer option and less risky. Investing in these stocks can also product dividends, which is more passive income for your pocket.
4–Put Away The Rest
And then, put the rest of the money into a high interest savings or money market account. You want to gain as much interest as possible, while still making it available in case you need it. Also, make sure that the interest is compounded. Compounded interest is the eighth wonder of the world. Compounded interest means that you are making that interest work for you.
5–Don’t Tell Anyone
And finally, if you win the lottery, then don’t tell anyone, aside from close family and the closest of friends. People can change when they are around people who suddenly have more money. Sometimes people may start to treat those people differently. So, to ease the pressure, just don’t tell anyone. The whole world doesn’t need to know that you won the lottery. Also, however money you have in your pockets or in your bank account is your business and not any else’s.
These are the 5 top things you should do if you win the lottery. Pay your debts, invest, save the rest, and most importantly, don’t tell anyone.
And you, my dear reader, what would you do if you suddenly won the lottery?