How to Avoid Going Bankrupt after Winning a Jackpot

Nowadays, there are lots of games doing rounds virtually everywhere, in the social platforms, on TVs you name it. From these games, some players get lucky enough to scoop huge lump sums of money as a jackpot. However, the devastating issue about these jackpot winners is that most of them tend to go broke after a certain period.

The big question remains how can you be in possession of millions, and the next thing people know you are dangling in bankruptcy? Here are the most common and mischievous mistakes that the majority of the jackpot winners make knowingly and unknowingly.

• Purchasing unnecessary things

The joy of having financial freedom kicks in when one is handed the token, making them feel like they can now acquire anything they have ever wished for. Many jackpot winners have been seen to purchase multiple houses, cars, cruises, etc. Such blunders will only render you broke in a few years, if not months. Avoid buying a fleet of cars to show your financial muscles. Some will even go for the latest Lamborghinis in the market to impress other people. Follow this route, and you are on your way to poverty.

• Performing cosmetic surgeries

This issue mostly affects female winners. After winning a jackpot majority of women think of undertaking cosmetic surgery such as breast implants and probably bleaching their skin to elevate their outward appearance. Such operations are way costly and involve so many complicated steps.

If not done correctly, you will have spent millions on the actual process and then more money on treatment for the resulting side effects. Corrective surgeries have to be performed, which will cost you more money.

• Not budgeting

It may sound crazy living within a budget while you possess millions of dollars at the bank. After all, you have money to get virtually anything you want there and then. It is an unfortunate trend, and in no time, you will be in severe financial crisis. Budgeting is always crucial, whether you have loads of money or little in your account.

You do not want to end up with expensive things that you do not use and add no value to your life. Experts recommend that jackpot winners ought to consult financial strategists who will guide them on how to manage their finances effortlessly. That is, of course, one of the major reasons several lottery winners are declared bankrupt despite winning millions.

• Generous high-roller

Most lottery winners tend to change their lifestyle immediately after winning the jackpot. They move from a simple, humble life to a life of spending thousands of dollars instantly. The chances are that you will be spending hundreds of dollars daily, and what do you expect?

The millions will be depleted in the blink of an eye. Probably you’ll start gambling and not get satisfied if you have not spent several thousand dollars. That will automatically be the start of a long, frustrating journey to bankruptcy. If you feel like taking the luxury cruises and itineraries around the globe, you make a call; then, you will be doomed in the next few months.

• Not settling debts

This is the worst mistake you can ever make after bagging a lottery. At any time you fail to clear your debts when you have the money, then you are digging your own grave. Imagine after securing the jackpot, and you squander all the cash without settling some vital issues like mortgages, student loans, car payments, personal bills, etc.

You are ultimately going to be the laughing stock in your community and a disgrace to your family and friends. Once you win a jackpot, it is crucial that you first clear with debtors such that in case of anything, at least you do not owe anyone anything and can start again.

Bottom Line

Winning a jackpot and retaining the money for a long time should not be a complex issue. Ensure you avoid such behaviors and talk to professionals in the field of finance on how you can manage your cash effectively.