Winning big in the lottery is what most of us pinoys fancy. And despite the obvious odds, it still is a blockbuster hit, with queue almost the same during MRT rush hour. With a huge amount of pot money every week, the entire family up to the third degree of consanguinity could live comfortably for many years.
All these remain unseen until you place your bet. And while we remain hopeful, we at MoneySmart.ph do not recommend playing lotto as a way of life. However, since we are in the idea of attracting positivity, why don’t we run down some must -do’s should you get lucky in the lottery:
1. Do Not Quit Your Job
Not that you have all the money in the world, doesn’t give you any reason to say goodbye to your job. Not just yet.
You see, the worst thing a biglang yaman person can do is to give in to their impulsiveness and make stupid decisions that will haunt them for months had they been sane right from the start.
Keeping your job at least for a year helps you simmer down and let you truly contemplate what your newly acquired wealth is all about. Take one step back and figure out what it truly means to you, then decide on what to do next.
2. Keep it on a Low
Winning instant millions could also earn you instant relatives. In situations like this, it’s tough to know who’s genuinely helping you and who’s there to just use you.
While I don’t want to make you look madamot, consider not telling the whole family about your fortune. Keep it within your closest person like your spouse, or your parents if you’re single, to avoid unnecessary obligatory spending to people whom you just met, or has never been of any significance in your life.
There is also an issue of security and you don’t want to end up as the next kidnap victim. Remember, money is something you can earn if you work hard for it, and no amount can sum up to your dear life.
3. Avoid Change of Lifestyle
Of course, moments like this deserve a celebration. So setting aside a fixed amount for splurges won’t be a bad idea. But do not go overboard.
Save the big purchases on a later time. Big houses, fancy cars or a European tour for the entire family, all these can wait until you are already clear with what to do and where to put your instant money. What you should always put in mind are these magic words: Live within your means.
For example, instead of buying a house, you could rent an apartment in the neighborhood you were dreaming of living, before you make any commitments. That way, you are not depriving yourself with a little happiness, and at the same time provide buffer to carefully plan your next step. Alam niyo naman, we can easily turn out to be our own worst enemy by quickly squandering the fortune, which brings me to my next tip…
4. Create a Team of Legal and Financial Advisers
Having someone who could guide you and give proper financial advise can help keep you on track, so that your cash doesn’t run out before you do.
As you know, easy money can go off easily when you don’t have a concrete plan on how to deal with it. Thats why having trusted professionals around is important to help you figure out how to not only set aside sums for family and friends, but also manage charitable giving and other strategies to help you avoid making wrong decisions.
Instant money such as your lotto winnings can be an overwhelming experience and with the help of a lawyer and financial advisers, they can give you a third person perspective of the things that are most important to you.
Of course, this doesn’t mean letting your advisers control everything. You have to have a say, and be involved in all planning process so you won’t get spaced out as to where your money are going.
5. Pay All Your Debts
There is no better investment than paying off all your debts. Consider your “blessing in disguise” as a golden opportunity to jumpstart your road to financial freedom.
Whether it’s credit card debt, or loans you took up from banks or any government institution, settle everything once and for all so you can have a clean slate. When you finally get rid of those excess baggage tagged as utang, you can focus on the next important things you can provide to yourself and your family.
Winning the lotto, or just plain getting a raise/ bonus, the rule of thumb should always be: To give yourself some time to get used to your instant cash before you spend it. Only when you finally pictured out and plan how to properly manage your wealth can you proceed with purchases that truly matters.
Got other creative MoneySmart tips on how to spend your instant cash? Share us your thoughts by leaving a comment below.