A customer buys lottery tickets in New York City (New York State, USA)
Experts often advise that winning the lottery can change your life in a positive way if you spend your money wisely. However, many people wonder how to win the lottery and how to spend it wisely.
What to do to win the lottery?
From 1993 to 2010, Mr. Richard Lustig became famous for winning 7 big lottery prizes in US states, with a total value of more than 1 million USD, according to The Jerusalem Post .
In 2010, about eight years before he died, he wrote a book on how to increase your chances of winning the lottery, and here are some of his tips, although no one can be completely sure whether they are true or not.
First and foremost, pursue stability. While it is true that buying more tickets can increase your odds of winning, it is important to strike a balance between investment and potential return. In a local lottery trial in Australia, buying more tickets did not fully cover the costs.
Another solution is to join other enthusiasts, pooling your resources so you can collectively buy more tickets and increase the number of players.
Mr. Richard Lustig won the lottery 7 times.
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Also, picking random numbers can be lucky and you should avoid predictable or consecutive numbers. Lottery results also tend to fall into a fixed range if you add up all the numbers. For example, if the prize has 5 winning numbers up to 55, aim for a total in the range of 104-176.
Diversification also increases your chances of winning, so avoid picking numbers that are in a group or end in the same number too often. Sometimes choosing less popular lottery games also increases your chances of winning.
Choosing numbers based on your birthday or other important dates can be tempting, and it’s a route many people take. Typically, these numbers range from 1 to 31, which inadvertently reduces your chances of winning.
Each number has an equal chance of appearing. While no software can predict the outcome, choosing less common numbers can increase your chances of winning, as well as avoid having to split the prize with many people who picked the same number.
What to do if you win the lottery?
According to financial planner James Wrigley at financial management consultancy First Financial (Australia) shared with Yahoo! Finance , lottery winners are not "immune" to the risk of quickly spending their "windfall" and falling into poverty.
Therefore, his general advice to clients is to maximize their wealth and avoid the traps that many lottery winners fall into.
The first thing is to buy a house and put it in your name. This expert believes that lottery winners can increase their living expenses by up to 20 times.
However, things get more complicated after that. According to Mr. Wrigley, many people want to share with relatives, but you should avoid just giving a sum of money, but record it as a loan with a receipt because this will help both parties.
Specifically, in case the recipient has financial problems, you can "recall the loan". This will give them a legal basis to avoid losing the above amount, while you can wait for them to resolve it and "lend" it back.
Also, maximize the amount you put into your retirement account because depending on your country's policies, you may be taxed less for the amount you put into this account.
Mr. Wrigley also offers other ways to manage and spend money, such as sharing it with charity and putting it into a family trust fund.
“The income you earn from that trust is your spending money. You can spend the income from those investments year after year. And this will go on forever,” he said.
Notably, Mr. Wrigley advises against spending your initial lottery winnings gradually, but instead invests money in passive income-generating areas such as stocks, real estate, and other areas.
"What attracts a lot of lottery winners, elite sports players and all the rest, is that they spend money. You don't want to fall into the trap of spending money on cars, luxury goods," he warns.
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