How To Win the Lottery

Everybody wants a million dollars. But most of us don't know how we would react if we had that kind of money. We dream about winning the lottery, but most people buying a lottery ticket assume it could never happen to them.

Of course, people win the lottery all the time. So it's a good idea to have a game plan, just in case you happen to be that person.

Ask yourself, why do I want to win a million dollars?

I think most people want to be able to enjoy the benefits of the "good life", free from living paycheck to paycheck, all the while sweating it out for the man in the corner office. You want it for your children and your loved ones. Basically, you want security and financial independence.

Sure, we all have some dream purchase we would make, if we had a million dollars. That dream item might get pretty pricey. But remember that millionaires can live beyond their means.

There are hidden benefits to having money, things you won't think about when you first become a lottery millionaire. To reap those benefits, you'll need to know how to hold onto the bulk of your winnings.

So if you win the lottery, maintain your financial sobriety. Don't lose perspective and a large portion of the windfall along with it. There's a good way and a bad way to do everything. Be smart; because, in the end, knowing the smart way to win the lottery will make you a happier millionaire.

Steps to Winning the Lottery and Beyond

1. Budget Your Lottery Money

Don't dip into your savings hoping to win the lottery. If it's going to happen, it's going to happen. Pouring money into the lottery doesn't much help your chances of winning it.

When you buy one lottery ticket, your odds of winning go from zero to one-in-eighteen million or so. When you buy two lottery tickets, your odds of winning go from one-in-eighteen million to two-in-eighteen million

Too many people spend too much on the lottery. People seem to buy tickets as if each successive ticket doubles their chances of winning. That just isn't the case. Each new ticket gives you one more shot at one-in-eighteen million. So buying multiple tickets isn't much of a bargain.

By all means, get in the game. But remember that buying a hundred tickets per week doesn't increase your odds of winning that much. You're going to have to get very, very lucky to win, so don't pour money down a rat hole. That first ticket is where the best pot odds are at.

2. Sign the Dotted Line

When you guy a lottery ticket, sign the thing immediately. It doesn't matter who bought the lottery ticket; whoever's name is on the winning ticket is the one who wins the lottery.

Just imagine if you bought the winning ticket and lost it, only to have the Joneses across the street pick up the ticket and cash it in. So make certain there is no question as to who owns your winning lottery ticket.

If you win, make copies of your signed ticket. Then have the ticket notarized. Do everything in your power to make sure you'll get credit for the most important document you'll likely ever have in your hands.

By the way, make certain to cash the ticket in before the expiration date. The last thing you want is to lose out on millions of dollars, because you forgot to check your ticket until it was too late.

3. Prepare for the Spotlight

When you win the lottery, a lot of attention will be focused on you. So live crime free and make sure you are ready for the attention.

When I mention this, I'm not necessarily thinking about the local paper. I'm talking mainly about the newfound interest the many arms of the government will take in you.

The police runs checks on people who win the lottery. Warrants for your arrest and outstanding traffic tickets will be cross-referenced. The I.R.S. certainly will sit up and take notice of you.

So make sure you are ready for the spotlight that will shine on your pre-lottery life.

And while I'm on the subject, try to do your best to stay out of the spotlight. If the local papers or television want to interview you, don't make a spectacle of yourself.

Give boring quotes and hope the story gets buried. The last thing you want is to have people far and wide know you just won a million dollars. Trust me on this.

4. Join a Lottery Group, if you want to, but sign an agreement.

Document, document, document. If you join a lottery sharing group and don't have a formal written agreement, then you're crazy.

Friends fall out over a little bit of money all the time. A few hundred dollars is enough to end lifelong relationships. So imagine the kind of havoc created when millions of dollars are on the line.

Don't take any chances. There is nothing wrong with signing a contract when something so important is on the line. This is a money transaction, after all.

5. Show me the money.

If you have the option, always take your payout in a lump sum amount. You usually have the option to take more over a twenty year payout. But even though it sounds like the better deal, it isn't.

When you win a lump sum amount, that money should go directly into a bank, where it can be earning interest for you. Assuming that the interest will be somewhere close to ten percent, you'll be doubling your money every seven or eight years. That means you will double that initial sum three times in twenty years. Unless the payment option is more than eight times the amount of the lump sum, take the lump sum amount.

6. Get away and clear your head - make no commitments.

Winning the lottery is heady stuff. For a time, you'll be living in a surreal environment. So it would be good to get away from the craziness around you.

I would suggest taking a leave of absence from work. If at all possible, don't let on like you've won the lottery. If most others don't know you're a millionaire, then your life will be a lot easier.

Take a little time to clear your head. When you're back in the right state of mind, you'll be better able to make rational and sober decisions about your future and the future of your family.

If you can't or don't get away, then remember the most important thing is to make no commitments. You'll be giddy when you first win the lottery. So will a lot of other people around you. Lots will be said, and you'll be likely to make promises you'll regret later on.

So make no promises to anybody. Once you are better suited to take advice in a calm-headed fashion, you can then begin to make your life decisions.

7. Change your mailing address and phone number.

When you win the lottery, people are going to try to contact you. Make it as difficult for them to do so as possible.

The United States Postal Service sells people's address information. This means that dozens of services will have access to their files. So if you have a physical address listed by the U.S. Postal Service, all the world will know where you live.

People will want to sell you stuff. People will want you to invest in their business schemes. And few people may want to rob you of your money. Make yourself as scarce as you possibly can.

8. Invest in a security system.

To that end, invest in a security system for your home. Most people who win the lottery move from their modest home to one more suited to their new lifestyle. Take this as an opportunity to have a home with a full security system.

I would suggest a home in a gated community or that is otherwise set off from the road. You don't want the rotten eggs out there to think you are an easy target. Try to give them some pause. Once again, make their "job" difficult.

9. Hire a team of financial advisors.

Do not leave your finances in the hands of amateurs. Don't place your trust in friends and family who don't have the expertise necessary to handle a million dollars. You may trust them, but that only means they are qualified to be your friend, not your stock broker.

Hire professionals. Hire an investment advisor and a portfolio manager. Put a tax accountant and an estate attorney on the payroll. Then do the smart thing and hire a certified public planner to oversee what everyone else is doing.

Redundancy is the key. Do not trust any one person with your future. Make sure you have a team of experts who are coordinated to make you money and to handle your estate in case something happens. And make sure these team members keep one another honest.

10. Understand your limits.

A million dollars isn't as much as it sounds like. That's because the government gets their share of the action. You'll be paying nearly 30% of every dollar to the government in taxes. So if you win a million dollars, you're actually winning 700,000.

11. Have fun, but not too much fun.

Let your hair down and live a little.

Everyone would like to know what it's like to have money to burn. Everyone wants to be a high roller. So when you win the lottery, live a little and spend on a few things you never thought you would have.

But make sure to make it a shopping spree, not a lifestyle change. No matter how much money you have, you can always spend it all. Nothing would be worse than to win the lottery and have the regret of knowing you blew it all.

After your initial excitement, moderate your impulses. Savor your good fortune.

Winning's Hidden Benefit

Money is freedom. That's why they call it the American dream. They say that money can't buy happiness. What it does buy is freedom. I mean that in at least two different ways.

One, it frees your schedule. You don't have to plan your day around work. You have free time, time to do whatever you need and want to do. For some people, that kind of free time might drive them crazy. But winning the lottery takes you out of the realm of necessity and puts you into the realm of desire. Figure out what you've always desired, what you always wanted to do with your life, and do it.

Two, it frees you from financial restraints. This can be another stumbling block from people. Freed from the normal everyday kind of prudence, they simply throw money at everything. They're like a kid in a candy store. That isn't the way for a new millionaire to go about life.

Don't be a child. Be an adult with an sober plan for life. If you always wanted to see the Parthenon, then fly off to Greece. If you want to see the Louvre, then do that.

Or if you wanted to buy your mother a house for all the times she put up with your nonsense, then do it. But don't go off and buy your own personal theme park.

Remember, a lottery winner is truly free. But don't abuse your freedom or you'll end up miserable. In the end, winning the lottery is about enjoying the benefits of financial security.

Further reading

Here's a website which will pick lottery numbers for you. Just click a button, and it will give you the numbers to play.

You can also find an overview of lottery games (like Power Ball) in general on this website. You can even find some observations about free online lottery games. Definitely worth visiting.