Tips For Managing Money You Won
If you are lucky enough to win money you will need to know how to manage that money. Don’t fall into the trap of winning money and squandering it away on frivolous purchases. Here are some tips for how to manage money you have won.
Consult A Financial Advisor
In the event that you have won greater than $10,000 you would be wise to consult a financial advisor to determine what to do with the money. They can inform you of how your taxes will be impacted by the money you have won. If you want to donate some or all of the money to charity, your financial advisor can tell you how that will affect your taxes as well.
Come Up With A Budget
The best thing to do when you win money is come up with a budget that will keep you from spending all the money before even realizing what you’ve done. Figure out your financial goals because this will help you decide how to divide up the money you have won. For example, if you are saving up for a house or a car, create a budget that will allow you to put that money towards those expenses in the future.
Pay Off All Your Debts
Now that you have the money to do it, pay off any debts that you have. Paying off your debt, or at least partially paying it off, can help you retain more money from each paycheck so that you can afford to pay your debts and still have the money you need to have fun and enjoy life. The faster you can pay off your debts the sooner you will have more money in your pocket.
While you may be depressed or disappointed over the idea of using your winnings to pay off your debts, you should look at it as a good thing. It can be very rewarding and uplifting to be able to free yourself of all debt. This will likely cut down on your stress levels and make you happier and healthier in the long run, which can even prolong your life.
Everyone dreams of winning money someday and no longer having to worry about how your bills will get paid. You will know you can continue to afford the roof over your head and the food in your refrigerator if you have won money. Regardless of how much money you win it is important that you not let that go to your head. There have been stories about people who won the lottery and ended up suffering because of it. Using the money you won wisely is the best way to have it enhances your life rather than destroy it.
Be sure to protect the money you have won because you will likely have greedy family members, friends or even acquaintances that ask you for money because they know you have won big. Never let winning money change who you are or how you treat people.
Amanda Spencer is the mastermind behind this article. She recommends http://www.cambist.co.za/ for high returns.
Category: Financial Planning
