How to be a Savvy Lottery Winner

How to be a Savvy Lottery Winner

How to be a Savvy Lottery Winner

For some, the lottery is simply a fun way to participate in one of South Africa’s favorite hobbies. For others, luck is easier to come by. A few of the world’s players even strike it rich more than once in their lifetimes. A jackpot win has given many locals their financial independence, but most victors spend their funds on their dream home, the car they have always hoped for, and the holiday they never thought they would be able to afford. Most optimists fantasize about quitting their jobs and living lives of leisure.

A few million rands goes far, but not always far enough to support a lifetime of wealth, so the most ambitious winners use their prizes to earn yet more money. When playing with Euromillions tickets, the weak exchange rate works on your behalf, turning a million euros into 10 million rands. Thinking about how you would handle your win before you win it could change your life: it is far easier to spend money smartly when it is not in your bank account begging to be spent.

Putting Money to Work

Money never needs to be passive. When put in the right hands, it works for you, potentially bringing in returns and interest rates that could support you while your jackpot remains safely invested. For a more risk-free option, a high-interest savings account would suffice but, by spreading risk across a number of portfolios, safety and earnings can be enjoyed. When the Western Cape lottery winner, Thembi Tulwana, became a member of the millionaires club, he chose to use his jackpot to open a small business.

Paying it Forward

The luckiest South African lottery player, a two-time winner who won his second jackpot in 2009, chose to put his new-found wealth into an investment fund that would take care of his children. The winner was said to have been extremely calm when he collected his winnings. This level-headedness with winnings is an enormous asset, and Moneyweb suggests that winners spend a full three months considering how they will spend their cash before touching a cent. When the temptation to splurge is resisted, winners tend to keep their current lifestyles or invest in new careers, which often help them in sharing their good fortunes with others. Charity donations give back in more ways than one: tax deductions can be gained in good conscience, too.

Spending Sprees

There are savvy ways to handle a spending spree: buying a luxury property in an upwardly mobile area is both an investment, a safety net, and an indulgence. Nonetheless, making a few non-refundable purchases would not be out of hand, as long as you do not spend it all on an unsustainably lavish lifestyle.

Other points you may consider
Having a safety net put aside for emergencies is something that middle and lower income groups can often only dream about. Lottery winnings make financial security possible if managed correctly.

Another thing that can sometimes confuse people playing international lotteries online, for example, is tax laws. It is important to be aware of the laws and considerations in place for your country. More examples of tax laws and a quick-fire checklist of some key steps to take when you win the lottery can be found within the following article:

 

Jose Hyndman