Winning a prize bond is a great experience and there is a huge list of to-do things we want to do with our prize money. However, taking certain actions can actually be counterproductive and end up resulting in huge losses.
Here are a few things you should NOT DO with your prize money. They include:
Making Your Prize Amount Public
It must be extremely tempting to tell your friends, family, colleagues, neighbors, neighbor’s dog and who not, about your recent riches! You must be enjoying being the center of attention everywhere you go. This is exactly what you need to avoid. Bragging about your cash prize puts you under every type of danger and threat. Therefore, it is best to avoid making your prize money public & stop telling every person you meet about it.
Stop Budgeting At All
Just because you won a prize shouldn’t be a reason to completely change your lifestyle. No matter how much you have won, it is still a finite sum and bound to end if you spend too extravagantly. Winning a prize bond, especially a huge amount, can significantly change your spending habits and will prove to be extremely disastrous if you do not exercise enough control.
Investing All the Money on Business Ideas
If you end up winning a prize bond, you will be immediately popular among your friends and family (regardless of your personality and looks). From business ideas to varying suggestions for investments, you will be dealing with all types of advices and recommendations. Some projects might seem promising and appealing, however, it is very important to practice restraint before wasting all of your money.
Use your prize amount wisely and avoid spending too much on one project. Never spend money on any project before you do proper ROI calculation.
Ignoring Your Debts
If you were in debt before earning the prize money, it is very important to pay everyone before you start spending on anything else. Accumulated debt can be detrimental to your budget. It will be very hard to properly carry financial management without complete repayment of debt.
Being Too Extravagant
It is totally understandable to go completely crazy after receiving all this money! You might want to spend on buying everything you have ever dreamt of. You should definitely avoid being too extravagant if you want your cash to last for longer duration. According to previous research, most lottery winners go broke within a few years due to overspending. Therefore, it is very important to carefully manage your money.