Winning the lottery is a blessing in itself, and being the sole winner could mean walking away with at least $6 to $9 million.
Case in point, a lucky man emerged was the only winner of $8 million in a recent Toto draw held on 16 May. The winner was pleasantly surprised as he had bought only a $1 Quickpick ticket to win this huge jackpot. In February, a luckier punter walked away with about $9.5 million in the 11 February Toto draw. This was the largest amount ever won by one person for a Toto draw in Singapore, and the biggest jackpot won by a single person to date.
What would you buy if you were to strike millions of dollars in the lottery? Would you invest in an apartment or get a new car?
The good news is that all lottery winnings are exempt from tax, so you get to keep every cent of your winnings unlike an Olympic medal which you will be taxed for. The headache, however is knowing where you can spend your sudden windfall. Don’t spend everything though, here are some tips to manage your jackpot.
Manage your finances carefully
With a sudden boost to your bank account, it is easy to splurge on luxury items. According to a history of lottery winners, there are many who end up in a far worse state than before winning the lottery as a result of overspending and gambling. Some end up getting into huge debts from accumulating expensive spending habits and an extravagant lifestyle.
Don’t fall into that trap, hire your own financial advisor or get advice from professionals on how to diversify your sudden wealth. You could use the additional resource for investments in property or the stock market, or even utilize the savings to earn some compound interest.
The Singapore Pools also has a Care for Winners programme which targets those who have won prize money of $100,000 and above, to provide financial advice on managing your sudden windfall.
Be low-key and reduce unwanted attention
It pays to be humble about your winnings rather than gain unwanted attention from others eyeing your sudden wealth. Else, be prepared for long lost classmates and relatives trying to get into your good books or borrowing from you if you brag about your sudden winnings.
Resist the temptation to upgrade your lifestyle too quickly and have a serious talk with your close family members to avoid disputes over money.
Don’t be in a hurry to quit your job
It might be tempting to throw in your resignation letter to enjoy a newfound freedom, but think twice even if you have dreamt about this situation countless times. Your lottery winnings will not last forever. Hence, do not be in a hurry to burn your bridges. If you want to start your own business with your winnings, make sure to research and plan before you make any rash decisions.
(Image credit: Landon Moss, 90s90s90s.com, Giphy, memegenerator)
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