As many past lottery winners have proven, taking home a million-dollar jackpot may not be the lifelong ticket to welfare it appears to be. Without careful planning and savvy business ideas, even the biggest jackpots will eventually run out and with them, so will all the perks of a high-class lifestyle.
In this article, we will tell you about the most important aspects that any lottery winner should be aware of. We will also include some of the top stories about lottery winners who have tried their hand at business.
The 3 Golden Rules of Managing Lottery Winnings
1. Keep the Splashing Out to a Minimum
After winning the lottery, you will undoubtedly be tempted to spend your money on supercars, luxury vacations, first-rate properties, and high-class parties. While this may appear to be the chance of a lifetime to splurge, you may want to take a step back and evaluate your future.
Countless winners have lost all of their millions in only a few years and they have found out in the harshest way possible that even the biggest jackpots eventually run out. Perpetual splurging implies a continuous investment, which simply cannot be sustained by lottery prizes alone.
2. Hire A Financial Advisor
If this is your first-time handling six-figure amounts, then seeking professional help is not only a recommendation but a strict requirement. A financial advisor has the experience and the entrepreneurial knowledge to provide you with a solid plan for your winnings.
Not only can professionals help you keep your money safe and pay all of your due taxes, but they can work with you to create a long-term plan for your newly-found fortune that is tailor-made for your objectives and that can assure that you remain financially stable for the foreseeable future.
3. Invest, Invest, Invest
While keeping your millions in the bank may seem to be a foolproof plan, it can easily crack and leave you significantly poorer or maybe even empty-handed. As such, it is ideal that you divide your money into several projects. While part of it remains in the bank, it is highly advisable that you invest the rest of it.
Whether you want to build your dream company, start a hedge fund, or invest in bonds, it is crucial that you put your money to work. As we have mentioned above, if business is not among your passions, seek professional guidance and find the right investment for your millions.
3 Stories About Lottery Winners Who Have Started Their Own Businesses
1. The Peter Lavery Story
Peter Lavery describes himself as a very lucky man. He says he has escaped bombs and even a bus hijack over the years. So, it didn’t come as a big surprise when he won the lottery. He spent the first few years indulging his every material dream. He bought cars, houses, and went on luxury cruises, all up to the point where he realised that this type of fun can wear out rather quickly for someone who is used to going to work five days a week.
As such, Peter decided to use his money to build something for the future because this would give him a much-needed purpose in life. He now has 33 properties in Northern Ireland and several housing sites which are in development, but what he is most proud of is his very own whiskey distillery, which he describes as “winning the lottery again. Peter’s work paid off handsomely, as he has managed to triple his fortune and build a solid future.
2. The Les Robins Story
Junior high school teacher Les Robins won a whopping $111 million in the Powerball lottery back in 1993 and his life changed forever. Predictably, he could not continue teaching, as news of his enormous win made him a local superstar.
After a few years away from teaching, Les created Camp Winnegator, a summer camp for children on Lake Winnebago. This enabled him to go back to working with children and pursue his passion further. While the camp may not be an extremely profitable business venture, it has reunited Les with his longstanding dream of reaching out to young minds.
3. The Jay Vargas Story
Jonathan “Jay” Vargas was only 19 years old when he won a staggering $35.5 million in the Powerball lottery. Initially, he said that he would keep track of the 3 golden rules, but the luxury lifestyle eventually got to him.
He decided to produce his dream TV show about female wrestlers and he invested all of his millions in “Wrestlicious”. The show features professional wrestlers in revealing stage-wear, which he believed would be a hit amongst male audiences everywhere. Unfortunately for Jay, the show did not have the impact he had hoped for and as such, he ended up losing all of his millions.
As you can see, having a long-term plan for a newly-found fortune can help you not only preserve it but use it to build something for the future. So, if you are lucky enough to win the lottery one day, remember the three golden rules because they will actually make a difference in the long run.