Back in 2016, we asked this same question. What five things would you do if you won the lottery? That is a big deal! If you had the winning lottery ticket and suddenly your money problems were no longer problems, how would that change your life? In 2016, your answers were not surprising. They were:
- Buy a house
- Book a holiday
- Pay off bills
- Buy a new car
- Save for the children
The commenters that answered the post seemed to agree with these choices, and history shows they fall in line with the top purchases most lottery winners buy, to some degree.
Some things change, some things remain.
It is human nature to buy extravagant things when they come into a sudden windfall of money. It is expected for people to buy the things they need like home, transportation, and things to make life easier. But the world is coming out of a unique time.
Millennials and Generation Z people do not see things the same way as the generations before them. While they will make some purchases, their priorities are different and this will influence those purchases.
The current generations are concerned about the condition of our planet. They want the purchases they make to be wise. They want to buy automobiles that are smarter and leave less of a carbon footprint. They do not want to buy houses that are way more than they need. When they buy clothing and furniture, they want natural fabrics that are biodegradable, last longer, and can be repaired and used longer. To sum it up. They are willing to pay for luxury, but they are not looking to be wasteful.
5 Things Today’s Lotto Winner May Do
Pay off all their debt.
In today’s financial climate, getting rid of all debt is a smart move for people of every income level. Some people think it is smarter to simply invest their extra money. In some cases, that works. But, every case is unique. If you pay a high-interest rate on a loan or credit card, will you make enough on your investment to offset it? It is smarter to pay off the debt and invest what you have left.
First, put away enough money to carry you for six months in an interest-paying account. This is the minimum.
Set up any education accounts needed for yourself or your children.
Set up retirement accounts.
Home (real estate)
- Pay for your home
- Will you remodel?
- Will you rebuild?
- Will you move?
- Will you buy a vacation home?
Generation X understands that things can change with little notice. So, when they come into something big, they move. The first thing they do is speak to some experts. There are many ways to invest money to make it grow when it comes to money. Of course, no investment is without risk. A financial advisor can advise on which are safe.
People also make purchases of expensive items, which are expected to go up in price. That may include fine art, real estate, certain pieces of jewelry, gold and other precious metals, antiques, and collector’s items. The rarer and the more documented an article is worth, the more valuable it is. These types of purchases need an expert to evaluate them. It requires extreme knowledge of the product to know if it has or will gain value. If you lack that knowledge, you will lose money.
Taking part of your assets to set up charitable trusts helps you avoid paying capital gains on real estate or stocks when they’re sold at a higher value. They also give you tax breaks and financial benefits because they reduce the value of your estate through charitable donations, which helps reduce estate taxes.
While lottery winners get a lot of attention for buying extravagant things like yachts, sports cars, and theme parks, they are just regular people who do good things too. One publication reported that of 3,000 lottery winners, 8,000 new homes were bought, and 3700 mortgages were paid off for friends and family members. Some have expressed that it just feels good to share the wealth.
When people come into unexpected money, it is natural to spend some of it. But today’s lottery winner is a little different than those of yesteryear. Who knows if trends will change again. Right now, people are unsure of what the future holds. We may be a little more careful with saving. We may be a little more willing to help each other. We might want to make sure we don’t buy things that hurt the planet. The truth is, we don’t know until we are faced with the choices.
There is one thing we have no doubt of. I’m sure everyone will agree, it is a good time to win the lottery!
Thank your for reading.