So the Lotto jackpot now stands at TTD $14m. People have been lining up all week to buy their “lucky ticket”, which for them represents hope for a new life, no more stress and money to throw away.
Before you get ahead of yourself though you may want to take a look at these SCORCH Lotto Winner Survival tips. It’s a statistical fact that the majority of Lottery winners end up broke after a few years, not just in T&T but across the world. I’m sure someone you know can give a story of a lottery winner who went from rags to riches and right back to rags. You really don’t want to be the guy or gal to add to those stories. Following these simple tips would go a long way to ensuring you and your family will be set for life, if done really well, for generations to come as well.
1. Slow down and Lay Low
So you check your ticket and realize you won. Your first thought is you need to celebrate, slap your boss, quit your job and perhaps run naked in the streets. HOLD UP! Take some time to yourself and plan exactly how you’re going to go about things. If your current situation will allow it, sit with your immediate family who you trust and plan out your next move. By no means tell people who you think will talk your business, because before you know it you’re being bum-rushed for hand outs.
Also change nothing about your lifestyle within the first 6 months. Don’t quit your job, look for a new house in Westmoorings or buy a brand spanking new fully loaded Range Rover. Take a week off from work to process things. Set aside a fixed amount of money to celebrate with because it is only natural you will want to, but don’t go over board. Save all the big purchases for later on.
2. Get Professional Assistance
Chances are you’re not a financial adviser or have a financial back ground so you’re going to need some professional help. If you already have one great, if not, you’re going to need to go through the process of picking one or two or three as the case may be. While some people think they can manage their own finances and budget for themselves, if you really want to maximize your earnings and your family’s future it’s advisable you get professional assistance.
Just make sure and do back ground checks and hold your cards close to your chest, you will want to interview a few candidates before you settle on one.
3. Splurge on Yourself – Within Reason
Let’s say you’re 22-30 years old and you win $14 million. The last thing you should do is fall into a partying, no holds barred lifestyle, because that’s a slippery slope. Just think about how you lived before, and enhance it bit by bit, no need to make a big jump. Your fist step should be to pay off all your debts, if you have non, pay off your parents’ debts at least. Don’t make it an every weekend ritual to be in the club or partying , be it in Trinidad, Miami or wherever, that’s a sure fire way to blow your money fast. You can spend your money but look at your immediate needs first.
Once you have established fixed income flows from your winnings you can begin to budget with guidance from your adviser. Your wealth is now secure so you can address your wants. You will have a fair idea how much your investments will be bringing in on a monthly basis so you can put a ceiling on your spending
Due poor planning and overzealous spending, 70% of lottery winners live to see themselves lose all of their money [source].
The reality is that 70 percent of all lottery winners will squander away their winnings in a few years,” the Connecticut financial advisers said in a news release. “In the process, they will see family and friendships destroyed and the financial security they hoped for disappear.
I’m pretty sure the figures are similar for Lotto winners here in T&T. Don’t be the guy who went from washing his car with Moet to driving a taxi, all within a few years.
4. Be careful of being too Charitable.
There is the story of Janite Lee, who won over USD $18 million in the Missouri Lottery, after just eight years, she was down to a mere $700! What made her story different and kind of sad is that it wasn’t excessive spending and splurging that led to her being broke, rather it was her excessive giving. Now we’re not saying that winning the lottery means a good person must become a miser and hang onto his or her money, but give within reason. If you were always a philanthropist at heart this may be the opportunity for you to set up your own charity.
Setting up a charity will streamline requests and narrow your focus immediately. If there is a cause you’re passionate about go for it, but go about it the smart way.
5. Lump sum or Annual Payments?
This decision will be up to the individual winner. Which ever you choose, the main thing is to have a plan. If you’re confident in your ability to manage your lump sum well and grow it over time by all means do it.
Good Luck to everyone who will be playing the Lotto later on this evening. Just remember SCORCH Magazine is a NGO and we take donations! 
-PEACE!
