What to Know Before You Win a Large Sum of Money

10.7.24
Do’s and Don’ts to Know if You Come Into a Large Sum of Money

Even though you may have little control over whether you will have a large win, you do have control over whether you are prepared, if you ever have a life-changing win. Whether you win the lottery, get a stimulus check, a bonus from work, insurance money or inheritance money, you can change your life, if you prepare for large sums of unexpected money. Be prepared by setting rules to automatically follow, whether you receive an extra check or an unprecedented amount of money. Prepare for the money you want. If you don’t budget and manage the money you have now, you won’t be able to manage a large sum of money. However, if you budget your money consistently now, you will prepare yourself for a windfall.

Don’t plan to spend your money on things that greedy businessmen would like you to buy, purchasing unnecessary high-priced items and senseless experiences. Instead, prepare to hold onto your money, so you spend it in ways that benefit you, allowing you to fulfill your dreams, not giving it to the greedy rich, who always act like they are entitled to other people’s your money! Everyone, from family members to businesses and celebrities, target winners for their money. Simply make a rule for yourself that you will not give away money or spend money, without waiting and determining whether it is sensible, not foolish or destructive for you. You are responsible for money that you pay taxes on, so don’t let others persuade you to spend it in unwisely.

When you acquire extra money, do not spend your money senselessly or fall for money schemes. Keep the same sensible spending rules you have currently. Don’t go for risky investments that you know nothing about. Plan out extra money—pay off debt, improve the quality and comfort of your everyday living, pay for schooling to advance your career aspirations, create a foundation to help humanity—and save as much as possible for future opportunities that benefit you, to improve society.

Plan your money, expenses and purchases. If you don’t already have a budgeting system to keep your finances in order, get one in place that allows you to have control over your money, to see how your money is moving. You can’t handle a large sum of money, if you can’t budget and manage your current income. My Home Organizer, helps you to organize your money, to see all you have now that you may not realize. The planner helps you to organize your income, expenses, purchases, and savings now, to have a system for handling money efficiently, regardless of the amount.

A large sum of money earned or received today is for you to live off of indefinitely in the future, so save money you receive now, as if you will need it to live off of for the rest of your life. Think of a windfall as a one-time opportunity to improve the rest of your life. Save and spend only as needed for necessary items. Figure out the best way to utilize the money to be most beneficial. Make a difference in the world and maximize your money.

When you come into a large sum of money--

DO NOT:

Do not spend any of the money, immediately. Plan before spending any of it, but save a substantial amount and plan how to protect it in a high-interest savings account, CD’s, real estate, etc.
Don’t follow the advice of people with fancy financial titles; follow your instincts. Don’t spend money in investments you have no interests in and know nothing about. Do not let a financial adviser have authority to handle your checks or have access to your bank accounts. Sign your own checks, so you know where your money is going.
Don’t tell people, other than immediate family, about your windfall. Continue to live modest.
Do not help others by giving them money—Don’t feel obligated to give to your church; don’t fall for the notion that you are giving to God, when you give to the church. And don’t be pressured to give to any charity, if they lack transparency in their operation. Help people in need by helping them directly, not necessarily giving money, but giving food, supplies, resources, time and advice they need to move forward.
Don’t run out to look for the most expensive house to buy. If looking for a house, only look for space you need, otherwise you will become overwhelmed with maintenance and upkeep expenses to keep up an image of a house you will have a hard time enjoying.
Do not forget to cover the taxes. Don’t spend your money, without making a thorough plan, to make sure you cover all expenses, especially all taxes. You don’t want to have to sell your house to pay mounting property taxes or income taxes.
Do not spend money on excessive celebrations and entertainment! Don’t throw away thousands of dollars on front row concert seats. Figure out how many needy kids you can help with that money (Celebrities will not starve, if you don’t spend outrageous money to see them). Don’t spend thousands of dollars on birthdays, showers, weddings, etc. Do not spend money on fashions, especially fleeting fads. Do not spend money to eat out daily; remember, this is your money for the future, possibly for life. People, who have money, often have money because they don’t spend money on daily disposables—only on special occasions.
This is no time to buy stuff you don’t need. This is a time you don’t want to spend, unless you have it written down on a list, after carefully considering your needs. This is an opportunity to improve your life, maybe a once in a lifetime opportunity—so, don’t blow it!
Do not spend on excessive items, like a top-of-the-line item, when it’s not necessary.
Never buy when you have brain fog—and can’t think. Just because you can buy, don’t buy anything in a rush, especially large ticket items. Sleep on a decision, when deciding whether or not to purchase, before you buy; ignore fear tactics that an item will be sold, if you don’t buy immediately.

DO:

Continue to think modest. Spend as little as possible, to live comfortable and sensible for a duration of time.
Plan before you spend. Take time to plan before buying anything, especially large ticket items. Make sure you are buying what you need, not buying excessive and unnecessary items. Don’t become a hoarder.
Save your money! The principal rule of saving is that money earned today is for you to save for tomorrow. Why win or receive a lump sum of money, if you are not going to make your life better for as long as possible. Saving money, instead of buying the most expensive cars and a house, allows you to live comfortable for a longer period of time. When you buy reasonably priced cars and a house, you will more likely be able to maintain it far longer than buying the top-of-the-line car and a mansion that will have exorbitant maintenance costs and upkeep, not to mention heating expense, yard upkeep, property taxes and insurance. Refrain from buying until you have thoroughly assessed your needs, desires and costs.
Only spend for essentials to advance your life, such as renovating your home, going to college, buying a laptop, and turning a hobby into a business or a passive income stream. Spend money to improve your life!
Make sure you use a portion of the money to start a small business or set up passive streams of income, so that your money makes money continuously. Do nothing major with your initial lump sum until you can think of, and set up, at least one sure business venture or passive stream of income. When you come into a large sum of money, consider yourself a business, and smart businesses use their money to generate additional money by offering useful products or services that benefit society. Athletes and high profile people waste millions of dollars because they don’t think about saving their money and creating a business, when they are earning money large sums of money.
Create a humanitarian cause. An astronomical sum of money should be used for a humanitarian mission. You increase your chances of winning by creating a humanitarian cause that helps a lot of people, and that needs a large amount in order for the mission to be put in full force. Sometimes, being prepared and focused for good things, brings the money needed.
Plan a humanitarian cause. Who will you help, if you come into a large windfall. What difference can you make for others, if you come into an astronomical amount of money. It’s important to determine who you would help now, before you receive a windfall, because you will forget your desired passions when you are bombarded with manipulating high-pressured greedy businessmen who want you to use your money to buy their useless expensive items.
Start now to manage your money! My Home Organizer is a financial organizer that helps you manage your income, your savings and your expenses, in order to make wise money moves. Planning now, before you get a large sum of money, is the ideal move to make! You don’t have to wait until you come into a large sum of money to plan your finances and be in control of your income. Start making smart money moves today by organizing your finances with My Home Organizer!