What Not To Do If You Win The Lottery

You would be forgiven for thinking that if you won the lottery, your financial worries would be a thing of the past, but it is becoming increasingly common to hear about lottery winners who simply squander all their winnings away. In fact, according to research, 70% of lottery winners lose all their winnings within a few years. So how can you avoid this happening to you? We’ve listed our top tips of what not to do if you win the lottery!

  1. Spend money like water

It’s normal to have a bit of a blow out when you win the lottery, but you can’t live your life like a superstar every day. If you start habitually drinking expensive champagne, eating out at Michelin star restaurants and only taking private jets abroad the money will soon run out.

  1. Let people take advantage

Winning the lottery can often reveal who your true friends are. Those who are happy for you and don’t expect a penny should be cherished, whilst those who see your win as a direct positive for themselves should be treated with caution. It’s great to be able to treat your friends and family but don’t be taken for a mug. Decide how you’re going to treat your friends but set a line- do you really want to be paying for their summer holiday every year for the next 50 years?

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  1. Ignore the experts

When you win the lottery, Camelot will give you access to financial experts who can advise you on how to invest and budget your money to ensure you don’t run out. These financial experts are impartial, and whilst it’s important to do your own research too, these people are trustworthy. If they advise against buying your local football team, it’s important to think with your head rather than your heart or risk squandering it all away!

  1. Help every Tom, Dick and Harry

All sorts of people come out the woodwork when you win the lottery: a neighbour who’s never paid you much attention before, an old school friend you’ve not seen in years and even distant relatives. You can’t possibly help everyone, so you need to prioritise. A good tip is to decide who you’re helping before the news gets out and people start contacting you first. You don’t want to be caught off guard and end up agreeing to something you regret!

  1. Forget about budgeting

Seeing millions of pounds in your bank account can easily give you a false sense of security into thinking the money will never run out. Once you start making large purchases however, such as luxury houses and cars, your monthly outgoings of bills, maintenance and upkeep can easily see you plough through that money in no time. Make sure you stick to a budget to ensure you can afford your purchases and lifestyle in the long run.