3 things you should do immediately after winning the lottery jackpot

If you win the lottery jackpot, it can be easy for you to spend it on unnecessary things or lose control of your money.. So, below, we are sharing three things that you must do if you win the jackpot.

These recommendations will help you manage your money effectively and make smart financial decisions to get the most out of your earnings.

1. Pay debtsYes

If you are lucky enough to win the lottery jackpot, it is best to use it to pay off your loans first.

Student loans and credit card debt often carry high interest rates, which means you can incur significant interest charges over time and end up paying thousands of dollars more.

According to a study by Annuity.org, the average American will have credit card debt of $5,525 in 2023.

If you have a credit card with a high interest rate, more than 19%, it is important that: If you receive a large amount of money, use it to pay off the debt on that card first. This is a good idea for people in the United States.

2. Save for emergencies

A survey conducted by the Federal Reserve in 2019 revealed that 40% of American adults could not afford a $400 windfall without having to borrow or sell something.

And for that, Savings are essential to cover unexpected expenses and achieve long-term financial goals.

The survey also found that 36% of adults who have not yet retired believe they do not have enough money saved for retirement.

3. Spend on experiences, not things

Various studies have shown that investing money in experiences generates more happiness than acquiring material goods.

A study in the Journal of Positive Psychology found that people who spent money on travel or events like concerts felt happier and more satisfied with their lives than those who spent money on material things like clothes or electronics.

So if you win a lottery prize, consider using a portion of it to spend on experiences that will bring you joy and happiness.

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