Powerball Lottery Winner Takes Home $430 Million: 12 Things That Winner Must Not Do

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Published: May 8, 2016 10:08 am

Last Updated: January 13, 2020 9:43 am

Is it possible that the new American dream has become winning the lottery? For some lucky soul in New Jersey, it has. That person won the $430 million Powerball jackpot, which has grown several times when earlier draws did not produce a winner After all, if you can become filthy rich overnight just by picking random numbers for a buck or two, that has to beat a lifetime of hard work. In fact, this is multi-generational empire building money.

There is a more serious side to the lottery most winners and dreamers fail to ever think about: with extreme wealth comes extreme responsibility. It might seem impossible to blow $50 million, $100 million or more, but the reality is that it is now easier than ever to waste or lose that sum of money.

24/7 Wall St. has tracked many lottery winnings over the years, and we have come up with a self-help guide of 12 things not to do if you win the lottery. Again, it is just too easy to go broke, and it is important to remember an adage here: you should only have to become rich once!

Sadly, many lottery winners have gone broke in just a few years. There are many pitfalls here, above and beyond deciding whether you should take the lump-sum cash payment or take a payout over the rest of your life. Most people who win the lottery choose the lump-sum payment rather than getting annual checks. So what happens if you win the lottery?

Again, extreme wealth comes with extreme responsibility. You have to consider how this can impact your family and your relationships. Will you work, or will you just chill out for the rest of your days?
The first thing that lottery winners need to do is to sign the winning lottery ticket and report it to the state. Before going to brag to everyone you know, you might want to reconsider. You also better line up a solid financial advisor and get some serious tax advice. Life is about to change drastically, but there are always limits. Thinking that you can live without a budget is a major pitfall.