Thanks to a journaling prompt from Tanya Taylor, while walking Daisy tonight I started thinking about what I would do if I won the lottery.
Nevermind that I never play the lottery…
My first thought? Would I take the lump sum or the annuity?
In the past I have always chosen the annuity, but the current state of New York’s finances has me thinking I might be better off taking the lump sum. Is an annuity from the lottery guaranteed? Now I need to research how “safe” an annuity from the State is!
After that, the decisions were easy. Since I have my allocation method, every dollar- or million- has a place to go. I do not have to think about it.
What was exciting was thinking of how I would use those funds.
What would I invest in?
What/Who would I give to?
What educational opportunities would I take advantage of?
Where would I travel to (this would be a shorter list until the world leaders give up on these unnecessary COVID vaccination requirements)?
Then I got to savings. A savings account would definitely not be the best option for this amount.
Here is the thing:
The way you approach your finances when you are surviving is different from how you approach your finances when you are comfortable, which is different still from when you have financial freedom.
If you want to reach the next level you have to change your approach and your mindset. Like everything else in life, what got you here will not get you to the next level.
This is why so many people who win the lottery find themselves worse off in two years and wish they had never won.
If you want to improve your life make financial education a priority. And, if you want to improve the lives of your children, make financial education a priority for them. The dividends are priceless.
What would you do if you won the lottery?