Secrets to winning the lottery jackpot and advice for the lucky ones.

A customer buys a lottery ticket in New York City (New York State, USA).

Experts often advise that winning the lottery can be life-changing if the lucky winner knows how to spend the money wisely. However, many people wonder how to win the lottery and what constitutes a sensible way to spend the money.

What do I need to do to win the lottery?

From 1993 to 2010, Richard Lustig became famous for winning seven major state lotteries in the US, totaling over $1 million, according to The Jerusalem Post .

In 2010, about eight years before his death, he wrote a book about 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 right or wrong.

First and foremost is the pursuit of stability. While it's true that buying more tickets can increase your chances of winning, it's essential to strike a balance between investment and potential profit. In a local lottery experiment in Australia, buying more tickets didn't fully offset the cost.

Another approach is to team up with other enthusiasts, pooling your resources to collectively purchase more tickets and increase the number of players.

Richard Lustig has won the lottery seven times.

SCREENSHOT FROM BOREDPANDA

Additionally, choosing random numbers can also bring luck, and you should avoid predictable or consecutive number sequences. Lottery results also often fall within a fixed range if you add up all the numbers. For example, if the winning number in the 5-number draw is 55, aim for a sum within the range of 104-176.

Diversification also increases your chances of winning, so avoid consistently choosing numbers within the same group or ending in the same number. Sometimes, choosing less popular lottery games also increases your chances of winning.

Choosing numbers based on birth dates or other significant dates can be very appealing, and it's a path many people follow. However, these numbers are often in the range of 1 to 31, inadvertently reducing the chances of winning.

Each number has an equal probability 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 share a prize with many other people who chose the same numbers as you.

What should you do if you win the lottery?

According to financial planner James Wrigley at the financial management consulting firm First Financial (Australia), as shared with Yahoo!Finance , lottery winners are not "immune" to the risk of quickly spending their windfall and falling into financial hardship.

Therefore, his general advice to clients is to maximize their wealth and avoid the pitfalls that many lottery winners fall into.

The first thing to do is buy a house and put it in your name. This expert suggests that lottery winners can increase their living expenses by up to 20 times.

However, the situation becomes more complicated. According to Mr. Wrigley, many people want to share with relatives, but you should avoid simply giving a sum of money and instead record it as a loan with supporting documents, as this will benefit both parties.

Specifically, if the recipient encounters financial difficulties, you can "recover the loan." This will give them a legal basis to avoid losing the money, while you can wait for them to resolve their issues and "lend" again.

Additionally, you should maximize the amount you put into your retirement account because, depending on each country's policy, you may be subject to lower tax deductions on the money deposited into this account.

Mr. Wrigley also suggested other ways to manage and spend the money, such as donating to charity or placing it in a family trust.

"The income you earn from that trust is your spending money. You can spend the income from these investments year after year. And this will continue indefinitely," he said.

Notably, Mr. Wrigley advises against spending the initial lottery winnings outright, suggesting instead ways to generate passive income such as investing in stocks, real estate, and other ventures.

"What attracts a lot of lottery winners, elite athletes , and everyone else is that they spend the money. You shouldn't fall into the trap of spending it on cars and luxury goods," he advised.

Source link: https://thanhnien.vn/bi-kip-trung-so-doc-dac-va-loi-khuyen-cho-nguoi-may-man-185240204191800971.htm