Forever rich: How to start the cashflow game after you win the lottery in 5 easy steps
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So you won a big lottery prize. Now what?
Having a lump sum from a big lottery prize is a great feeling at first. But when the money runs out in a year or two - it is not.
This "spending until it's gone" is the biggest problem for lottery winners, and many lose it all in a few short years.
Here's how to avoid this problem, and become richer!
The answer is to turn your winnings into cash flow.
Cashflow is one of the most important words in life. It means just that... cash flowing into your world so you can spend it.
Call it income if you prefer. For most people it comes from working a job, trading time for a weekly wage.
That’s the E quadrant in the cash flow illustration above. Stands for Employee.
But you don’t want to work ever again.
So how do you get extra cash flowing from a lottery win?
It is remarkably simple...
Robert Kiyosaki, author of ‘Rich Dad, Poor Dad,’ has outlined the ways you can achieve cash flow, and this is the answer for lottery winners too.
Here’s how it works.
With a win, you now have capital.
Your win is your capital. You then put that capital - your winnings - into an investment, and then live off the interest it produces.
Say you got a $10 million win like Trang D with her 6/49 lottery win.
Invest that and it will give you up to $800,000 a year at around 7-8% in interest. That’s around $15,800 a week, less tax.
And this amount will keep coming into your bank account, week after week, forever.
This amount is easily enough to pay a big mortgage, make payments on cars, boats... and have enough left over to travel and live a fine lifestyle.
Worried about living your life with repayments like this? Don't be.
When you have this large amount of capital in the bank, secured, banks will fall over themselves to lend to you.
You don't even have to have a job or regular income like most other loans, because the interest is your security.*
And when you've paid it all off while enjoying life in the meantime, you still own everything you've bought... PLUS your original capital.
And the cashflow interest money keeps on rolling in. It's like having the goose that lays the golden eggs. You'll never run out.
It's a win-win situation! Here are the steps to take after your win:
1. When you're asked whether you want the win as a lump sum or an annuity (payments spread out over a 20 or 30-year period), always ask for the lump amount.
2. Keep some of the winnings aside for making deposits on your large purchases. You may need $10% on a house deposit for example.
3. Ask your financial adviser to get you the safest and highest return on your capital.
4. Start buying your goods with payment amounts based on your cash flow.
5. Relax and enjoy your abundant life!
How easy is that! You are now set for life. Enjoy!
*As always you should check this out first with your financial advisor.
