Congratulations, you've just won the lottery – here's what you should do next
It's early in the morning, and your phone's ringtone starts to buzz. It's The Lott, and they've just informed you that you're the sole winner of the jackpot the night before.
Your heart rate spikes, you close your eyes and imagine everything you can possibly do with your bags of cash. Then reality sets in. Now what?
It's been more than two weeks since one lucky Powerball ticketholder nabbed the only division one prize of the $100m Powerball jackpot.
Weeks later, they are yet to claim their winnings, with The Lott revealing the mystery division one winner purchased their winning ticket from a newsagent in Bondi in Sydney.
So, if you were the lucky one to hold the wining ticket, what exactly would you do first?
Take a deep breath
It's natural to get overworked as the reality of winning the jackpot hits you, so experts recommend you stop, take a deep breath and give yourself time to think.
There's no need to reveal your identity, either, even to family or friends, RSM Financial Services Australia director Grace Bacon said.
'There will always be someone in your circle that feels they would like financial assistance, and you may feel pressured to assist them,' she told NewsWire.
'It's sad to say, but money can end very long-term family and friend relationships – I've seen it happen. You can get very caught up in what people need from you versus what you need for yourself.'
White Rabbit Advisory financial planner Nicola Beswick said winners in Australia had the 'legal right to stay anonymous' to protect their 'safety and decision-making'.
'As hard as it is, keep quiet!' she told NewsWire. 'You will find lots of new best friends if you don't. Stay calm, remain anonymous, and book a confidential meeting with a trusted financial adviser.'
Lock your winnings down
Before you begin splashing your cash on a new home, holiday or paying off your debts, Ms Beswick recommends parking the winnings in a bank while you work on your 'long-term strategy'.
However, she warns against relying on 'one account or bank' to reduce risk and allow 'time to plan properly before making any big decisions'.
'Spread the funds over multiple high-interest savings accounts or term deposits to stay within government deposit guarantees ($250,000 per institution),' she said.
Do winners have to pay any taxes?
Thankfully, the ATO does not classify a lottery win as an income, meaning the ticket holder will be awarded their full jackpot.
With that in mind, Ms Bacon said winners may need to fork out a bit of cash if they are a 'regular game show contestant' or make any investments with their winnings.
'Keep in mind that once you start investing, you may have to pay tax on your investment earnings,' she told NewsWire.
Avoid impulse spending
As tempting as it is to splurge as soon as your bank account becomes fatter, financial advisers urge winners to avoid making too many rash decisions.
Ms Bacon told NewsWire that winners should steer clear of impulse spending, no matter how alluring the idea could be.
'It may be very tempting to go on a shopping spree but ensure you set some smart financial goals so that you can use this new-found wealth to create something more sizeable for the longer term,' she said.
Don't quit your job (just yet)
Ms Beswick also advised winners to 'avoid making any decisions straight away'.
This includes calling your boss and handing in your letter of resignation.
'Don't quit your job on the spot,' she said. 'Take some leave so that you can think clearly.
'Protect your identity and your future by taking things slowly and getting professional advice.'
Make a list before you spend
With lashings of cash at your disposal, it's easy to list off all the things you could spend your money on – holidays, fancy cars or a cheeky shopping spree.
However, it's extremely common for people to lose their winnings almost as soon as they pocket it due to unregulated spending or failing to pay back debts.
Ms Beswick said you could avoid this by writing a list with two columns – one titled 'need' and the other 'want' – before spending anything.
'The 'need' column will include things like buying or paying off your home, helping out family and investing a certain amount,' she said.
'The 'want' column will have material things that are not a priority – a holiday in Rome, a new Lamborghini, a private jet with a personal chef and gold-plated seatbelt buckles.'
Have a 'bucket' strategy
At the end of the day, the best way to avoid lottery wins slipping through your fingers is by having a solid financial plan.
Ms Bacon recommends using a 'bucket' strategy to keep an ongoing pool of money to dip into whenever required.
'Money is not a bottomless pit no matter how big the win is,' she said.
'I suggest having a 'bucket' strategy so that you reward yourself and loved ones to celebrate the win (it might be that big holiday you've always dreamt of or that particular car), but having medium-term and long-term buckets for the bulk of the winnings will help fund your future.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
ABC News
an hour ago
- ABC News
Drought-affected Victorian town of Penshurst has 'one shot' to save its last pub
Surely there could be no worse fate than a country town losing its last pub in the middle of a drought. That's why a south-west Victorian community is banding together in the hope of raising $1 million to buy the town's last remaining watering hole. So far, the 670 residents of Penshurst, a rural town about 300 kilometres west of Melbourne, have raised $250,000 to bring the Penshurst Hotel into community hands. But the group still has hundreds of thousands of dollars left to raise, with little time left. At the turn of the century, there were six pubs in Penshurst, but now only the Penshurst Hotel remains. The pub went on the market in April 2025, and the community has tried to buy it out of fear it will be shut down or turned into something else by new owners. The group's offer for the property has been accepted by the owners, but sales contracts are yet to be signed. The ABC understands there have been four other offers on the property from potential buyers across the state, including from Melbourne and Ballarat. Ray Allan moved to Penshurst eight months ago and is spearheading the campaign to buy the historic bluestone pub. "Pubs are critical things in small towns," he said. The pub is open a few nights a week, but only for drinks after the bistro closed in January 2024. The closest pubs are a half-hour drive away. Mr Allan, who is also a member of the Penshurst Progress Association, said the pub was vital for locals' mental health. "This is not about saving the pub," he said. Across the state, a growing number of pubs have been taken over by community groups. Just this month, 83 community members pitched in to buy the Maroona Hotel near Ararat after the owner put it up for sale. Mr Allan said about 40 Penshurst residents met in April to discuss collective ownership of the Penshurst Hotel, with people invited to buy a unit share worth $5,000 each. In six weeks, Mr Allan said about 30 shareholders committed a total of $250,000. Once the sales contract is signed, the group has about six weeks to raise a further $200,000 to close the deal. Mr Allan said he was feeling confident the necessary funds would be raised, but there was "also a bit of a niggle" of doubt. If successful, the group hopes to raise yet another $650,000 for repairs to the 1850s-era building, including refurbishing the kitchen and dining areas to reopen the pub for meals. The Penshurst Hotel would initially be operated by the community, with the option of leasing it to a third-party operator down the line. Penshurst resident Kate Orchard said many of the people who had contributed were farmers who were battling the drought. "They are doing it so tough with feed costing what it does, but they realise how important this was and [found] that little bit of money," Ms Orchard said. "The front street looks like a smile with the front teeth gone. "This is a one-shot go … if this fails, we probably won't ever get it off the ground again." Eileen Copeland operates the local post office and is among those who contributed to the fund. She said she hoped a successful pub would bring more people to town. "The more people who stop in the town, the more likely they're going to wander in here and buy something from me," she said. Australian Hotels Association chief executive Paddy O'Sullivan said community-owned pubs that pitched themselves as a tourist destination, as well as being a local hotspot, were best placed to succeed. Mr O'Sullivan said communities needed to be prepared for the challenges involved in running a pub, such as staffing and the long hours, and ensuring it was financially viable. But he said he believed the trend of more establishments entering public ownership would continue. "It's great to see," he said.
News.com.au
3 hours ago
- News.com.au
Sydney investors flock to Melbourne as locals stall
Interstate investors are swooping on Melbourne's housing market as many local buyers remain cautious after years of rising taxes, tighter regulations and patchy price growth. New data shows Melbourne is hosting 943 auctions this week — up 6 per cent on the same time last year — with another 772 scheduled for next week, according to PropTrack. Suburbs with the most listings include Reservoir (19 auctions), Glen Waverley (18), Craigieburn (16), Mount Waverley (15), and Malvern East (14). But while local activity remains uneven, experts say a significant portion of investor momentum is now coming from interstate, particularly Sydney and Perth, where rising prices and falling yields are pushing buyers to seek better value elsewhere. Ray White Werribee agent John Camilleri said he had recently seen contracts signed before payments cleared. 'We've seen properties in far worse condition sell in the $570,000 to $580,000 range, including one that sold over the phone to an interstate buyer,' Mr Camilleri said. 'The investors inspecting this one came in with full-blown itineraries, some of the most detailed I've ever seen. 'Right now, they're swimming through fire to secure properties — they're not mucking around.' Mr Camilleri said many were chasing weekly rents above $600 and were making 'aggressive plays' in suburbs like Werribee. MR Advocacy director and buyers' agent Madeleine Roberts said out-of-towners were now doing the maths on Melbourne and finding it stacks up. 'They're less emotionally attached to the local market — and that's giving them an edge,' Ms Roberts said. She said strong rental yields and Melbourne's relative affordability compared to Sydney, Brisbane and Perth were major drivers of renewed interest. REBAA President Melinda Jennison said Melbourne was re-emerging as a prime opportunity. 'With stabilising rates, increased migration, and more stock hitting the market, the city is shaping up as a prime spot for savvy investors and first-time buyers alike,' Ms Jennison said. REBAA Victoria state representative Matt Scafidi said the 2024–25 financial year had marked a turning point. 'While it lacked the explosive growth seen in other states, Victoria has remained a market of opportunity, particularly for discerning buyers with long-term outlooks,' Mr Scafidi said. Belle Property Hockingstuart Victoria director Anthony Webb said confidence among local investors was still lagging. 'Victorian investors are still jaded,' Mr Webb said. 'But buyers from NSW and WA believe Melbourne has hit the bottom and are looking long term.' Mr Webb said many locals were still 'gun-shy' after a bruising few years of land tax hikes, regulatory change and rising holding costs — but that sentiment could shift quickly if rate cuts eventuate in the second half of 2025.
News.com.au
3 hours ago
- News.com.au
Congratulations, you've just won the lottery – here's what you should do next
It's early in the morning, and your phone's ringtone starts to buzz. It's The Lott, and they've just informed you that you're the sole winner of the jackpot the night before. Your heart rate spikes, you close your eyes and imagine everything you can possibly do with your bags of cash. Then reality sets in. Now what? It's been more than two weeks since one lucky Powerball ticketholder nabbed the only division one prize of the $100m Powerball jackpot. Weeks later, they are yet to claim their winnings, with The Lott revealing the mystery division one winner purchased their winning ticket from a newsagent in Bondi in Sydney. So, if you were the lucky one to hold the wining ticket, what exactly would you do first? Take a deep breath It's natural to get overworked as the reality of winning the jackpot hits you, so experts recommend you stop, take a deep breath and give yourself time to think. There's no need to reveal your identity, either, even to family or friends, RSM Financial Services Australia director Grace Bacon said. 'There will always be someone in your circle that feels they would like financial assistance, and you may feel pressured to assist them,' she told NewsWire. 'It's sad to say, but money can end very long-term family and friend relationships – I've seen it happen. You can get very caught up in what people need from you versus what you need for yourself.' White Rabbit Advisory financial planner Nicola Beswick said winners in Australia had the 'legal right to stay anonymous' to protect their 'safety and decision-making'. 'As hard as it is, keep quiet!' she told NewsWire. 'You will find lots of new best friends if you don't. Stay calm, remain anonymous, and book a confidential meeting with a trusted financial adviser.' Lock your winnings down Before you begin splashing your cash on a new home, holiday or paying off your debts, Ms Beswick recommends parking the winnings in a bank while you work on your 'long-term strategy'. However, she warns against relying on 'one account or bank' to reduce risk and allow 'time to plan properly before making any big decisions'. 'Spread the funds over multiple high-interest savings accounts or term deposits to stay within government deposit guarantees ($250,000 per institution),' she said. Do winners have to pay any taxes? Thankfully, the ATO does not classify a lottery win as an income, meaning the ticket holder will be awarded their full jackpot. With that in mind, Ms Bacon said winners may need to fork out a bit of cash if they are a 'regular game show contestant' or make any investments with their winnings. 'Keep in mind that once you start investing, you may have to pay tax on your investment earnings,' she told NewsWire. Avoid impulse spending As tempting as it is to splurge as soon as your bank account becomes fatter, financial advisers urge winners to avoid making too many rash decisions. Ms Bacon told NewsWire that winners should steer clear of impulse spending, no matter how alluring the idea could be. 'It may be very tempting to go on a shopping spree but ensure you set some smart financial goals so that you can use this new-found wealth to create something more sizeable for the longer term,' she said. Don't quit your job (just yet) Ms Beswick also advised winners to 'avoid making any decisions straight away'. This includes calling your boss and handing in your letter of resignation. 'Don't quit your job on the spot,' she said. 'Take some leave so that you can think clearly. 'Protect your identity and your future by taking things slowly and getting professional advice.' Make a list before you spend With lashings of cash at your disposal, it's easy to list off all the things you could spend your money on – holidays, fancy cars or a cheeky shopping spree. However, it's extremely common for people to lose their winnings almost as soon as they pocket it due to unregulated spending or failing to pay back debts. Ms Beswick said you could avoid this by writing a list with two columns – one titled 'need' and the other 'want' – before spending anything. 'The 'need' column will include things like buying or paying off your home, helping out family and investing a certain amount,' she said. 'The 'want' column will have material things that are not a priority – a holiday in Rome, a new Lamborghini, a private jet with a personal chef and gold-plated seatbelt buckles.' Have a 'bucket' strategy At the end of the day, the best way to avoid lottery wins slipping through your fingers is by having a solid financial plan. Ms Bacon recommends using a 'bucket' strategy to keep an ongoing pool of money to dip into whenever required. 'Money is not a bottomless pit no matter how big the win is,' she said. 'I suggest having a 'bucket' strategy so that you reward yourself and loved ones to celebrate the win (it might be that big holiday you've always dreamt of or that particular car), but having medium-term and long-term buckets for the bulk of the winnings will help fund your future.'
