Much of the discussion about lottery winners focuses on how they got away with their money. But some Powerball jackpot winners have made good financial decisions that have gotten them out of debt, set them up for future wealth, and benefited people in their communities.
At least a few of the lessons were learned the hard way, and we can take their experience and apply it to make better decisions for our own personal finances. Here are the six most important things Powerball winners can teach us.
Lesson 1: Pay off your debt
Not all lottery winners immediately spend their winnings on luxury cars and homes. Many use their earnings to pay off their mortgage or pay off credit card debt.
That’s what $2 million Powerball winner Megan Balmer did recently. She immediately made plans to pay off her house debt and erase her accumulated credit card debt. If you’re trying to eliminate your own debt, some helpful debt payment apps can help you get on the right track.
Lesson 2: Invest wisely
Jack Whittaker won the $314 million Powerball jackpot and received a one-time payout of $113 million. Unfortunately, Whittaker spent most of his money over the years gambling, giving away money, and making useless business investments.
The quick takeaway from Whittaker’s financial woes is that no matter how much money you have in the bank or what your annual income is, it’s always a good idea to find solid investments to grow your money. This can happen by buying or selling stocks in your brokerage account or by setting up a 401(k) through your employer. There are also many great websites and apps for beginner investors.
Lesson 3: Learn to say no
Sandra Hayes shared the $224 million Powerball jackpot with some co-workers and quickly realized that some people close to her were constantly asking for money. He had to learn how to say no; This was a good lesson for anyone trying to improve their personal financial situation.
Sometimes you need to say no to certain expenses to achieve larger goals you’re working toward (like paying off debt or saving to buy a home). Saying no can make you richer by helping you avoid the wrong opportunities and investments.
Lesson 4: Set a budget
Hayes didn’t just learn to say no; He also maintains a relatively frugal lifestyle to ensure his earnings last. While she bought a car and went to Hawaii, she set a limit on her spending and still shops at discount stores.
If you hate budgeting (and most people do), you might find it helpful to use a budgeting app that tracks your expenses. Setting a few budget goals, such as building an emergency fund, will help you focus on what you want to accomplish.
Lesson 5: Hire a financial professional
Buying things can be fun, but it can also lead to overspending, credit card debt, and even bankruptcy. But no matter how much money you have, it can be difficult to keep your spending under control; That’s why it helps to hire a financial advisor.
Powerball winner David Gehle took a similar step after he and some colleagues won the $365 million jackpot. Gehle was afraid he would spend all the money, so he invested cautiously, hired accountants and lawyers to help him manage his winnings, and even waited a few years after winning the jackpot before buying a house.
Lesson 6: Be charitable
Lerynne West won the $343.9 million Powerball jackpot in 2018 and donated $500,000 to the Travis Mills Foundation veterans charity; She also founded her own charity called the Callum Foundation, which focuses on education, animal welfare, veterans and fighting poverty. .
Of course, you don’t need a large amount of money to donate to your favorite charity. Doing this is a great way to help people in need, and being generous has many benefits, too.
Learn lessons the easy way
Even if you don’t have a lot of money, there are some practical steps you can take to put yourself in the best financial position possible. For example, if you’re not sure how to manage your money, consider downloading some financial literacy apps to educate yourself.
Apps can be an easy way to grasp financial ideas and concepts you don’t yet understand, and you’ll learn important financial lessons quickly; so you can be ready when your numbers come in for the next Powerball jackpot.
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