What would you do if you won the jackpot?

Although the chances of winning the jackpot are less than being struck by lightning, we continue to dream about what we will do when it happens.

What if it suits you (as a well-known advertisement said)? Then what would you do?

Would you go around the world? Would you party until the final fall? Would you buy a new house — a car? Would you invest or give money to family and friends?

Are you prepared for what might come next? Read below how to prepare so that you do not find yourself regretting the moment you won.

Even if it is not done, it is worth reading as it will help you manage any kind of financial success.

The first moments-Secure the ticket and arrange how to redeem it

You have checked and re-checked the winning numbers with your card. Yes! You have won the grand prize! After the first justified reactions of joy and surprise, try to calm down and make sure that the winning ticket is and will remain intact until you redeem it. It’s the only way to prove that you have won. Do not forget, the winnings are barred after three (3) months from the date of the draw.

Usually, redemptions of tickets up to € 100,000 are made at the agencies or offices of the lottery authority. For over 100,000 € are made exclusively at the offices of authority. You should contact them to redeem and find out how to pay them (in your personal bank account).

Profits are taxed as follows(in my country):

Profit up to € 100: tax free

Profit from € 100.01 to € 500: profit tax 15% (on the amount exceeding € 100)

Profit from € 500.01 and above: profit tax 20% (on the amount that exceeds € 500)

Keep your anonymity and do not make abrupt changes in your life

Before you start sharing your success with relatives and friends (from the first moment until months later) take your time to think about how your life can change and how to manage the money earned. Do not do anything drastic, such as stopping your work, buying an expensive house or a luxury car. In the meantime, spend some money on expenses — it’s natural to want to celebrate success.

Keeping your anonymity, at least for a while, will give you and your family the time and space to think about your next steps. Your details can not be published anyway if you wish. Think about how this success of yours can help you create a richer life that will last.

Besides, if you keep your earnings secret you will not have people “bombarding” you with demands for money or advice on what to do with your money. You need to think about your next steps in detail, make a plan and not react spasmodically.

Secure your future and that of your family — Repay your debt

If you have debts, loans, credits, or anything else now that you have won the jackpot you have no relief from not repaying them. Start with this with the highest interest rate and stop the interest that slowly eats away at your property.

Put some money aside for an emergency

Even millionaires face financial problems. Creating a healthy emergency fund is one of the first things you need to do with your profits. A good rule of thumb is to have enough for six months’ expenses. Keep in mind that your expenses will probably be increased. Choose a safe place for this money, e.g. a time deposit account.

Secure your retirement and the future of your children

The next step will be to start a private retirement plan so that in addition to the immediate future you can secure the farthest. This way you will be sure that you will have some income later in life with all the benefits that private retirement can give you (taxation, pension transfer, etc.)

You should move on the same wavelength for your children. You can make a savings plan to have it when they grow up and start their studies.

Start enjoying your winnings — Improve your life but live within a budget

Especially if you are not used to having a lot of money, it may take some discipline to maintain your profits and not squander them. One way to support yourself is to spend only your income — not your capital.

This does not mean that you will not be happy with the money you earn, but that your moves will be measured so that you do not find yourself in front of surprises. For example, you can buy a house, but before you do, consider what kind of house you need and can maintain.

Generate income

As mentioned above, one way to maintain your profits or even increase your wealth is to generate income from your profits. You can invest your money or start a business.

Whatever you do, it’s good to get the advice of an expert. It is very easy to make choices without much thought just because your earnings allow it. But this can have devastating consequences for your property.

Share the winnings with the less fortunate

Whether it is a charity or just a family member facing difficult times, share some of your good fortunes. When you donate to a charity, your donations could also have tax benefits.

Learn to say “NO”

When he learns that you have won the jackpot, you will receive many requests for financial help. Some will be honest and interesting — others, not so much. Unfortunately, until you take care of all of the above, you will have to dispose of them all except the most urgent ones. Otherwise, your profits could evaporate before you realize what happened.

It will not be easy. It is almost guaranteed that some people will do what they can to get some of your profits: manipulation, pressure, and even threats. Prepare to avoid problems in the future.

Instead of an epilogue

As we mentioned, the chances of winning the jackpot or the lottery may be less than being struck by lightning. This does not mean that many of us will stop dreaming.

What would you do with your profits?