You must have heard that somebody won lottery and got a lot of money at once. Did you ever think that how they spend this unexpected money. But I know somebody those who won lottery and spoiled all money immediately and become a debtor. This article tells you how you can manage money when you won a lottery or a windfall.
1. Wait for a short while: When you win lottery and get a big amount of money immediately you should wait for a short while, say two or three months to plan how you can effectively use this money. You can keep this money in any short-term fixed deposit or any debt funds to get enough time to make planning about the money.
2. Keep an emergency fund: You can create an emergency fund as per your financial background and your family needs. If you are not able to find all your financial commitments, you can get advice of a financial planner or financial adviser to plan your unexpected income.
3. Pay off your debts: When you get unexpected money you can pay off your debts and this will enhance your financial status. It you have a big amount of loan and the money you got is not enough to pay off all your loans; you can settle high interest loans first. Anyway paying off your loans is a good step to improve your financial condition.
4. Fix priorities of your financial goals: You may have certain financial goals such as your own retirement, buying a residential house, marriage of yourself or your children, higher education of your children etc. Fix priorities for all your financial needs and fulfill them or keep money for them.
5. Give for charity: Whenever you get an income, remember others those who do not have a chance to get any type of income andcould not fulfill their basic needs such as food, clothing and medical treatment. Spend a portion of money to fulfill their basic needs.
6. Spend money and live happy: Do not forget to live while you are hurry with keeping your unexpected money you got from a lottery or windfall. Spend a portion of money to satisfy your dreams and convenience such as buying a car or go for a trip with your family etc.
If you keep the abovementioned matters when you got a windfall or winning from lottery, you can enjoy the winning and can use your unexpected income effectively, if not your post winning financial condition may worse than before.