Dream Big: What Would You Do With A Huge Win?

How would you feel if you won a REALLY big sweepstakes prize?  Really big like $1,000,000, $3,000,000 or even $5,000,000!  Shocked? Excited? Disbelief?  How about the feeling of endless possibilities?  Think of all the things you could do with a life-changing amount of money.  There are so many ways to use the money for yourself and for others.  You’re going to want to manage your money properly so that it truly lasts a lifetime and you make the most of your big win.  

Once that initial disbelief and adrenaline rush wears off, common feelings of winning big include joy, nervousness, confusion and even possibly guilt.  It will be important to take a pause before making any big decisions about what to do with the money.  There’s no rush, so just slow down and plan before you make any crucial decisions.The big questions are: spend, save or splurge?  Well, you can do all three if you do it smartly.  This article explores the ways in which you can use your prize wisely as well as some cautions about what not to do.

Smart Financial Moves

The smartest thing you can do first is NOT start spending, but start planning.  You should seek the advice of a financial advisor or an accountant.  They are professionals who know how to manage money and can give excellent advice.  There are many things you’ll want to discuss.  First, how to pay off your debts which can include a mortgage, credit cards, student loans, car loans and any other types of money that you owe.  You’ll want to determine how much money to put aside for an emergency fund and savings planning.  Investing is also an important move.  This can include investments in mutual funds, index funds, bonds and creating a diversified stock portfolio.  Investing can include creating a retirement fund through an IRA (individual Retirement Account) in addition to any 401(K) or other company plans you have.  Even small investment decisions can stretch your winnings over the course of a lifetime

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Another important consideration is the tax implications of a sweepstakes win. With a very large win, you will owe federal taxes and possibly state taxes.  This will significantly reduce your net prize, so you’ll need to account for that.  Consult with a lawyer or accountant to help you navigate the tax landscape in your state.

Enjoy The Win Without Regret

You should enjoy part of your prize, guilt-free.  You should celebrate – you deserve it!  There are tons of things you can do!  A good idea is to set aside 10-15% of your winnings towards your “Fun fund” while keeping the rest for the future.  

1. Plan a dream vacation for you and possibly friends and family.  We’re not talking about a small trip.  Take a super long trip to Europe or Asia and fully explore the continents. Take a really long cruise to exotic locations.  Make it an EXPERIENCE not just a trip.
2. Upgrade your house or car. Trade in your old car and get a brand new one with all the latest features,  Maybe get an electric vehicle to keep environmentally friendly, Do some serious renovations on your house. Get that dream kitchen you’ve always wanted, add an extension, get a pool or do some maintenance you’ve been putting off. 
3. Buy a house or make an upgrade from your current home.  You could buy your dream home or just buy a house that you feel comfortable in. Your living space can be an important factor in your mental health, so go ahead and buy a house that meets all your needs.
4. Take some time off from work to recharge your batteries.  Use that vacation time and more if your company will let you.  Now you have the financial freedom to miss some work time.
5. Treat your friends and family to some gifts.  Indulge in some things that will bring joy to others in your life.  It will make you feel good too.
   

Make A Difference With Your Winnings

A generous thing you can do with part of your winnings is to donate to charities and good causes.  It not only helps the organization but can make you feel good as well.  There are a variety of causes you can help out including charities and community projects.  Find some national organizations that align with your values.  Look for local causes or community projects in your area and offer to help out. Helping friends and family is another type of charity.  It’s meaningful to provide support to loved ones, but it’s important to do it in a way that doesn’t create a dependency on you.  Make it clear that it’s a one-time gift and not ongoing support.

There are even small scale giving ideas.  For example, you could fund a scholarship at a local high school.  Or you could help out local small businesses that are having challenges. You could even just volunteer your own time to help out any of these causes.  

Charitable donations also have the added benefit of having tax advantages. They can typically be deducted from your income tax to reduce your tax burden.  This means donations are not only fulfilling and meaningful, but they also have a real impact on your finances.

Lifestyle Upgrades That Last

You can invest in yourself by enhancing your quality of life. Invest in yourself.  This can come from many sources and will improve your overall state of mind and well being.  They can be just as important as physical goods.  

1. Invest in education for your or your kids. Enhancing your own knowledge will help you grow as a person and may even enable you to get an upgraded job.  Paying for your kids' college will set them up for success without having the burden of student loans.
   
2. Always wanted to start your own business?  Have a passion project you’d love to pursue?  Now you have the funds to implement these plans.  You could also invest in an existing start-up business that you believe has strong potential for long-term success.  
3. Enhance your physical health and wellness.  Join a gym.  Start eating nutritionally healthy meals.  Get a subscription to a prepared meal service.  Make sure you visit doctors regularly for checkups and overall health maintenance.
4. With your financial freedom comes life’s freedom of choice, time and peace of mind.  You can make some small investments in lifestyle upgrades that improve your life without spending all your winnings.  As with everything, make sure you have a strong financial plan for how you will spend your money.

Avoid Common Pitfalls

There are plenty of horrible stories of big time sweepstakes and lottery winners that burned through their prize and were left with more financial burdens than before they won.  There are some common elements to all these stories and you can avoid the same mistakes by learning from them.  

The biggest potential problem is overspending on luxurious and unneeded large ticket items such as an exotic car or a house that is too big for your needs.  Some winners go overboard and spend all of their winnings in a relatively short period of time. Then they are stuck with big car loan payments or mortgages that they can’t afford anymore.  

Another source of problems is pressure from friends and family.  They may urge you to make big luxury purchases or even give them some money.  It may seem like everyone has an opinion, but stick to your plans and advice from professionals.  It’s important to set boundaries with those that are close to you.

Before you go public with your big win, keep it private and make plans.  Keep your perspective of who you are and stay grounded.  Don’t let your new found fortune “get to your head” and change your perspective on life.

Winning a huge sweepstakes prize could be the most exciting moment in your life.  There is so much you can do with so much money, but it's important to be smart about it and plan, plan, plan.  Get professional help from professionals.  Every time you enter, you have the chance to win and good planning for the big win will make it even better.  Winning isn’t just about the money.  It’s also about creating a life that is rich all around.