You always hear those stories where a winner blows all of their earnings and ends up in a financial crisis. In the event that a sweepstakes or contest has a large cash prize it is important to know how to be a smart spender. Of course, sweepstakes winnings can be in the millions, sometimes hundreds of millions, if you are crowned the big winner you may not know how to handle yourself financially. So, RewardIt is here to help you get an idea of how you can be smarter with your winnings and not end up like these folks.
Find A Trusted Bank and Wait
One of the best things you can do with your new winnings is immediately put it into a secured savings account in a trusted bank. We know, you still can’t believe all those commas in your account, but it is important to let the hype and excitement of winning the lottery fade away before you make any major purchases. This may take a few months or maybe even a year, but when you’re overly excited about your winnings you may make some not so smart decisions with your spending. BE SMART!
Stay At Your Job!!
Most big cash winners that have lost it all make the mistake of quitting their job. This is something you should try and avoid. Don’t let your winnings take control of you; continue living your everyday life like you did before you hit it big. You can always decide to change careers or leave your job after the initial shock has disappeared.
Make Smart Investments
There are many ways to invest your winnings, but it is important to get involved with things that are low risk. If you want to invest in stocks, it may be a good idea to find a trustworthy and experienced financial advisor. Speak to several before choosing and to diversify your risk you should probably work with more than one advisor. You could also put some winnings in bonds and bank CD’s. Just make sure to minimize your risk by staying within the FDIC limits. You may need to open accounts at multiple banks. While we are not financial advisors ourselves, it is important to view your options very closely. Make sure you do your research and choose wisely!
If you win the a big prize at RewardIt, tell us what you would do with the winnings. Tweet me @ChrisRewardIt and let me know.