Earlier in July, the Mega Millions Lottery crossed over the $500 million mark. Now the Powerball lottery drawing for Wednesday, July 20, is up to $361 million. The cash value is currently $250.3 million, and the winner will become more wealthy than most people can ever fathom.
It has become increasingly evident that the new American Dream is winning the lottery. After all, isn’t getting handed millions upon millions of dollars more fun than a lifetime of hard work, saving and budgeting. Also, the media keeps telling you that it’s just too hard to get ahead through hard work and responsibility these days.
Whether lottery winners take the annuity or the cash option, this Powerball drawing, if won, will be generating multi-generational wealth. It also will create the need for extreme responsibility. This is why 24/7 Wall St. has created the 12 things not to do if you win the lottery guidelines.
As most people take the cash lump-sum option, and after they pay the highest taxes possible, they still will have more money than they can imagine. Sadly, many lottery winners have gone absolutely broke. The lure of endless wealth and endless desire just is too much for some people. Many lottery winners ignore all the classic warning signs and temptations.
It may seem hard to imagine that you could blow through hundreds of millions of dollars. It has become incredibly easy to squander $100 million or $200 million. You can go through even more than that in short order. Temptations bite most lottery winners, but the real damage comes from careless planning and refusing to accept that even this sort of money comes with limits.
Many pitfalls await lottery winners or those who unexpectedly come into instant wealth. Family relationships and friendships may come under pressure. Bragging about getting rich can be dangerous, and even deadly. Getting financial advice and tax advice up front is an absolute must. And accepting that you will need a budget is crucial. Thinking you are now the smartest person in the room just because you got lucky probably will help to ruin your fortune. If this sounds silly, please understand that you are a prime candidate to go broke after becoming filthy rich.
Again, temptations are many. And they are costly. Jets and yachts, mega-mansions, third and fourth homes, private islands, keeping an entourage — these all cost endless amounts of cash, and the cost is ongoing rather than just upfront. Other temptations might be multi-million dollar art auctions or the prettiest jewelry that money can buy. Who wouldn’t want a vintage car collection, or at least buying into a racing or sports team? You can even buy a ticket to go into space. What about renting out a cruise ship for all of your friends and family? Quite simply, you could commit to blowing hundreds of millions of dollars in a few days if you put your mind to it.
Has the reality check set in? Our entire effort behind the 12 Things Not to Do If You Win the Lottery is to keep anyone who becomes suddenly wealthy from going broke. This pertains to those who unexpectedly inherit millions or who receive a large judgment as well. 24/7 Wall St. does not want anyone who comes into instant wealth to go broke. You should only have to become rich once.
Here are the 12 things not to do if you win the lottery.