Understanding the mistakes to avoid keeps you from losing the money
You have probably come across people who won a charity lottery, only to find them in the same financial situation they were before. It happens, but does not have to be the case with you.
It results from the unwise handling of the money.
A charity game is a form of incentivized giving, where people purchase tickets with the hope of earning a gift. Gifts can take the form of autos, cash prizes, vacations, and electronics, among others.
For this reason, money won is never expected. Most people play the charity lottery intending to help the charity organizations these lotteries support.
Here are three mistakes you should avoid if you need your winnings to change your life for the better.
Failing to Plan for the Money
A significant mistake you can make with your earnings is failing to budget. You probably did not expect to win. But the money is here anyway. As you would budget for your salary, budget for your charity game earnings. Plan before you have your cash at hand.
A budget will keep you from spending without limits or being too generous with your money. It is okay to buy a few gifts for friends and family, but do not be too charitable. An amount of $25,000 may seem a lot. But once you start spending aimlessly, you will be broke in no time.
Forgetting Your Debts
If there is one thing you should place on high priority when you receive your winnings, it is debt. Whether it’s student loans or mortgage balance, you should clear yourself of any financial obligations. You wouldn’t want to have debt still after spending all the money.
With your debts cleared, you can focus on channeling the rest of the money into worthy investments. Do not assume that you can make it on your own. Consult investment advisors on the best ways to grow your cash.
Announcing Your Charity Game Winnings to the Whole World
While it’s understandable to be excited, sometimes it’s better to keep the good news to yourself. Don’t go announcing it to anyone willing to listen. Although it’s not a common occurrence, someone could steal your ticket, fake your identity, and take your winnings.
If it’s possible to remain anonymous, do so for as long as you can. Besides the security reasons, it will protect you from people who plan on turning you into their welfare department. Only inform those who need to know, such as immediate family members. Let everyone else wonder how you came to have so much money.
In a nutshell, winning a charity game is not easy. But when you happen to get lucky and make several grand, you need to know how to act so that you don’t end up broke.
Create a budget for the money before it gets to your hands, and give your debts top priority. You do not have to tell every Dick and Tom about your luck. Collect your money, quietly build your life, and you will benefit.