R120 million Powerball jackpot: Here’s what to do when you win the lottery

If you are the lucky winner, these are the things you should avoid to do.

In our ‘Daily hacks’ series, we bring you the latest beauty and home tips, trends and tricks to transform your life and save you money. Picture: iStock

One lucky South African could change the course of their life today, and it may just be you. Remember to buy your ticket today and the R120 million Powerball jackpot could be yours.

If you have any tingles, luck might just be on your side and you do become today’s lucky winner.

If that happens, here are six things you could do to avoid a wild spending spree.

What to do if you win?

1. Avoid sudden lifestyle changes

For the first six months, avoid doing anything drastic. For instance do not upright quit your job, buy a luxury house or a car.

If you feel like you need a car, always opt for a budget model. It’s only natural to want to celebrate your windfall but set aside a fixed amount for that.

2. Pay off all your debts

There is no better investment than paying off debts, whether it’s credit or mortgage. Remember that when you pay off your debts, you avoid added interests and you are free from owing anything.

3. Invest prudently

Putting money in a safe within the first six months and not even touching it, it is recommended as a short term investment.

Then ask your advisors to put together an investment plan. Avoid investments that you do not comprehend and sound too good to be true.

4. Live within a budget

If you are not accustomed to having a lot of money, it can be very hard to discipline yourself which may lead to a wild spending spree.

If you already have an income, you could restrain yourself and only spend the income.

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5. Assemble a team of legal, financial advisors

This may also prove to be difficult as you wouldn’t know who is trying to help or exploit you.

The first step at this is to conduct thorough research on each advisor, check for broker records, and check with the authorities if any lawyer has any complaint filed against them.

If you live in a small community, visit the nearest town or city to get professional advice. Once you are able to, it is recommended to get your lawyer, accountant and investment advisor to work together.

6. Take steps to protect assets

When you are worth a lot of money, you need to guard against losing all your assets to creditors. This includes prodigal spouses and ex-spouses who win lawsuits against you.

You will be a target to people who will try to sue you for whatever reason. Use relevant asset protection strategies that will make it difficult for creditors to access your money.