7 Things You Should Never Do After Winning the Lottery, According to a Wealth Manager
Congratulations — you’ve just won the lottery. No, you’re not dreaming. That ticket really did have the winning numbers, and now a significant sum of money is coming your way. Once you stop pinching yourself (seriously, you’re awake), you have a lot of decisions to make.
Wrong choices can send your sudden windfall scattering into the breeze of impulse spending, misguided generosity to friends and family, and poorly timed or ill-informed investments. Knowing what not to do with your lottery winnings can be just as important as knowing what to do.
MoneyLion chatted with Cindy Kumar, a CPA and fractional CFO at Elevated Accounting, to get her take on the most common — and costly — mistakes lottery winners should avoid.
1. Quit Your Day Job
While your winning lotto ticket may feel like a get-out-of-work-free card, you may want to pause those fantasies of telling your boss what you really think. For starters, taxes may take a far bigger bite out of your winnings than you expect. You might also miss the structure and routine work provides.
Kumar likens winning the lottery to being an athlete or celebrity who suddenly strikes it big. Those who struggle most often make sweeping lifestyle changes before their financial systems can fully catch up.
“I usually recommend keeping life intentionally boring at first,” she said.
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2. Tell Everyone You Know
Wanting to share your good fortune with friends, family and even social media followers is natural. But Kumar doesn’t think it’s wise. She’s seen how quickly things can spiral for high earners.
“Privacy is a form of protection,” she said. “Once people know, expectations change immediately.”
Long-lost relatives suddenly flood your DMs. Your friend has an idea for a business that makes beanies for goats, and they need a loan. Scammers lick their chops, trying to get to you.
Instead of focusing on how that money can serve you best, you may find yourself overwhelmed by everyone else’s needs and requests.
“Fewer voices early on lead to better long-term decisions,” Kumar said.
3. Confuse Access to Money With Understanding Money
That ticket you bought with your morning coffee may connect you to a lot of money, but it doesn’t instantly transfer the skills to manage it wisely.
“I see the same pattern with lottery winners that we’ve seen with athletes and entertainers,” Kumar said. “Income arrives before structure. The urgency to act shows up before there is a plan.”
If you were already prone to overspending, making rash investment decisions or neglecting long-term planning, winning the lottery isn't going to change that. Often, it will only exacerbate existing problems.
“More money does not fix things,” Kumar said. “It exposes money habits.”
4. Make Big Decisions Right Away
Ideally, your winnings will support your goals — whether that means traveling more, retiring comfortably or starting your own business — for decades, not just the next few years. That requires a clear vision, thoughtful planning and the right team of advisors.
Kumar recommends taking six to 12 months to think and plan before making any major financial or lifestyle decisions.
“Time creates clarity,” she said. “Speed creates mistakes.”
5. Neglect Planning for Taxes
Lottery winnings may seem eye-popping at first glance, but Kumar advises against planning your life around the gross amount. Taxes are unavoidable, and they come due quickly.
She calls it “the after-tax reality,” and that's the world you’re living in. So don’t drive that full-price Lamborghini off the lot just yet.
“Taxes reduce a large win faster than people expect,” she said. “Many high earners get into trouble not because they lack money, but because they spend against income they do not actually get to keep.”
6. Forgo Advice
It takes a carefully curated village to support a lottery winner. Kumar says that village should include trusted financial experts, such as a CPA, a fiduciary wealth advisor and an estate planning attorney — each serving a distinct purpose.
“No one person should be both the decision-maker and the cheerleader,” she said.
Trying to do it all yourself or relying on advice from well-meaning friends can leave gaps in tax planning, investing and asset protection that will come back to bite you later.
7. Focus on Complex Investments and Financial Products
After coming into a large sum of money, you may feel pressured — internally or externally — to pursue sophisticated investments or niche financial products. You may even reason that if something is hard to understand, it must be smart or elite.
Kumar insists you avoid anything that feels rushed, overly complex or positioned as exclusive.
“Early on, simplicity, liquidity and flexibility matter more than sophistication,” she said.
The Bottom Line
Winning the lottery feels like a dream come true, but there are financial realities every winner must face. Avoiding common mistakes such as rushing decisions, publicizing your good luck too widely or skipping expert advice can help transform today’s windfall into tomorrow’s long-lasting financial security.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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