5 Mistakes People Make After They Win the Lottery
A 50-year-old woman in Michigan just hit the Powerball jackpot for $310 million, and immediately quit her job. So, she's sure to be smart with her money, right? Well not really.
According to Business Insider, most lottery winners aren't. Here are 5 big mistakes people make after they come into a lot of money.
- They don't pay their taxes right away. Whether you win the lottery or inherit a bunch of money, it's the first thing you should do.
- They pay off their house. Which might feel good, but interest rates are so low, you're better off with a 30 year mortgage. That way you can invest your money.
- Bragging about it too much. A lot of lottery winners end up having to move, because all their friends and neighbors eventually want something from them.
- Going on a spending spree. With something like $310 million, you can spend all you want. If you inherit 50 grand and start acting like you're rich, you'll blow through it.
- Trying to use the money to make even more money overnight. It's a major reason a lot of lottery winners end up losing all their money. If someone says they can double your money in a few months or even a few years, be very suspicious. And maybe think twice before you give your cousin half your savings to start that line of cat scarves she's so passionate about.
Source: Business Insider