Learn About Lotto From This Famous Boxer
Let's imagine you've won big this Saturday. (Congratulations if you did!)
Now what are you going to do?
Most people have it figured out this way:
- pay their bills
- replace their old car with a new one, and buy a dream car for their partner too
- upgrade to a new house
- take a long holiday overseas in a warm climate
- help out their family with houses, cars and pay off their loans
- put whatever's left in the bank. According to many articles about lottery winners, these actions seem to be typical.
But it's also a recipe for disaster, because there are many winners who strike problems along the way. They usually run out of money about two years later.
There are more winners with these problems than you realize.
Here's why...
Many lottery winners have never handled large amounts of money in their life. They've often worked for low wages most of the time, and just exist from payday to payday.
Many financial experts will tell you that it's very difficult to change a life of one extreme to another.
Going from poor to rich is sometimes a difficult change for many people. So much money, so much to spend it on!
Here's how to avoid that:
After a sizable win, invest most of your money in a rock solid income producing area--such as property.
It applies to anyone who gets a large sum.
Recently I read about a famous British champion boxer, Prince Naseem Hamed, who retired after 10 successful years in the ring. That's not long to make any decent lifetime earnings. But because he and his family had invested his win money in commercial property, he is now in a position where he can live comfortably off the proceeds for the rest of his life.
If he had squandered his money from the start as many "fast money" performing artists and performers--and lotto winners do--he would be forced to box for the rest of his life in order to maintain his lifestyle.
The same theory applies to lotto winners who get a large sum just once. If they spend all the money in the first year or two, it will be impossible to maintain a carefree lifestyle forever.
So your first priority must be to invest wisely.
There are many ways to do this, but first a caution...
You will often be approached by many people with "get rich quick" schemes. But it's very rare that any of these will help you.
You can also buy new or existing businesses, but these generally are complex to run, and could end up losing you a great deal of money instead of making it.
What's the answer?
The classic investment recommended by many advisers is property. The rent from your tenants provides a regular income that lasts for years.
So here's what your new wishlist should look like:
- Pay off all your bills.
- Keep 20% of what's left as play money.
- Invest the rest in good income producing investments, such as property.
Make sense?
Spend your win at the beginning, and it's gone for good.
But if you spend $10,000 on furniture one month, and the next month you get $10,000 from your property investments, you can replace the money you spent--and still have the same amount available the following month, and forever.
Investing wisely means that the money you have won will keep coming back to you for the rest of your life, without any effort on your part.
Isn't an endless stream more appealing than a once-only win?
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