Anna Bay mum wins $33 million lotto
Anna Bay mum wins $33 million dollars
News has broken that one Anna Bay family is the lucky winner of $33m Lucky Lotteries Super Jackpot.
The Anna Bay mum has declared she won’t say goodbye to work just yet.
When asked how she expected to enjoy her newfound luck, the winner shared it would go towards a new family home.
“I’ve been renting for a long time, so I can’t wait to buy a home. I can say goodbye to renting and hello to a house in my name. I will keep working though. I don’t have plans to retire just yet. This is life changing.”
“In any moment of decision, the best thing you can do is the right thing,
the next best thing is the wrong thing, and the worst thing you can do is nothing.”
- Theodore Roosevelt
What would you do if you won the lotto?
One recent lotto winner, who claimed over $100m had a singular bit of advice for future winners…
“Run don’t walk to see a financial adviser”
What to do if you won the lotto?
The most common responses are:
Don’t tell anyone
This is probably easier said then done.
When you go from renting a home to purchasing a multi-million dollar home, before quitting work to focus on your purpose and what you love doing, where you start going on lavish holidays and trips overseas.
This generally starts to raise a few eyebrows around family and friends.
People will then start coming out of the woodworks with their hands out asking for help.
Our Newcastle Financial Planners have seen this occur with several young athletes & models, whom have come from nothing and now have to support extended families leaving them with little or nothing to support themselves or build their own personal financial security.
Take your time
Never make financial decisions when you are in a emotional state.
The high from winning this kind of money will provide you with all types of emotions that you may never have had experienced.
Money can trigger strong emotional reactions, which can lead to not-so-great decisions, like missing payments or overspending.
If we allow money to stir emotions of anger, greed, fear, or even joy, in that moment, we have allowed money to become bigger than ourselves.
Plan
Take your time to work out a plan.
Work out what you enjoy doing and map out a plan to do this more.
A plan may also include how and where your monies are invested, where your income is distributed and to whom and what happens to your capital should you pass.
Seek out professional advice
Speak with an expert financial planner and tax accountant, whom will be able to support you with investing, protecting and preserving your capital. Creating a legacy for future generations to come.
Let your money work for you
Rather then you working for an hourly wage in a job you do not enjoy, let your money work harder for you to produce you with income to live off.
Give
Many lotto winners may consider $30m+ more then they require. They may look to establish a charity or foundation that will be able to continue to donate to causes and organisations that are close to them, long after they pass.
Provide for your family and loved ones
Provide a legacy and financial security for future generations, whilst also protecting your assets against divorce/ death.
Enjoy yourself
Many large lotto winners feel a great sense of burden from their new found wealth.
Enjoy yourself. Write down your wish list and start ticking off the items.
I am not after money.
I am after the freedom that comes with having money.
Two very different goals.
How much wealth do you think you need to achieve financial freedom?
Most people have no idea how much money they will need to achieve financial security, independence and freedom.
The giant numbers in their head are so intimidating that they never even start a plan to get there.
What is financial freedom?
Financial freedom means you are in control of your finances and your life choices.
Financial burdens force us to make desperate choices.
So how do you define financial freedom?
For you it might mean that you don’t have to go to work anymore, or you can take a lower-paying or non-paying job to do something you love. It might mean knowing that you always have a roof over your head.
For some it means that you own your house and your cars outright. You don’t have debt. That might be what you need. Others might say they need to know that they have a certain amount of income coming in and are not reliant on others so that they can travel the world without worrying about paying bills.
Still others might want to fund charities, do mission work, or give money to help others. There are no wrong answers, but we do need a destination. Think about what it means to you to be financially free. Once you know what it means to you, it’s time to calculate how to accomplish it.
What is your number?
How much wealth do you think you need to achieve financial freedom?
It’s funny, when I go through this with clients - the number generally starts out enormous
“I NEED $100 MILLION TO BE FINANCIAL FREE”
When we break it down, some situations look like this:
A Home $2m
A Car $200k
Living expenses $200k p.a.
Holidays $100k p.a.
This would mean you require approximately $6.5m to become financially free.
To break it down further:
Initial Capital Required $6.5m
Less
Home $2m
Car $200k
Remainder = $4.3m
$4.3m multiplied by 7% investment earnings = $301,000 p.a.
Which will meet living expenses and holidays.
Significantly less then the $100m you initially thought.
What if money was not a problem?
Another way to look at financial freedom is to consider what your life is like and what you would be doing if money was not a problem.
How would you spend your time, how would you be contributing, how do you find self value and self worth.
Many people go through this when they retire, especially those with managerial/executive positions.
They go from being important and valued, to losing themselves and having to find what their purpose is.
*remember to gamble responsibly
Financial freedom to me means;
you are financially secure
with your home unencumbered
with your investments earnings meeting your lifestyle needs
you can wake up with no alarm
you plan your day out
you are not in a rush
you don’t need to sit in traffic jams
you work on your own terms
you can take a break whenever you want
you can go on holidays anywhere anytime
you can spend time with those you love
Why do you want to be financially free?
Vision
What do I really want?
Why do I really want this?
Many people live day to day, week to week, without thinking of the future.
As humans we are wired to choose today over tomorrow, but we also hate to feel like we are missing out on something.
A recent research study was conducted with monkeys.
5 monkeys were given a banana each – and high levels of excitement were measured.
5 other monkeys were given 2 bananas each – and high levels of excitement were measured.
However, when a change was made, and the monkeys with 2 bananas had one taken away, they still had 1 banana, but they became angry and irate.
Does this happen to us?
Do we forget what we already have?
If we feel like we are losing something, then we avoid it, we don't do it.
This is why so many people do not save & invest.
Saving sounds like you are giving something up or losing something today. But you’re not. It is giving yourself a gift today of peace of mind, certainty, of a secure financial future.
Therefore, those that choose today over tomorrow, often find themselves at the cusp of retirement realising that they will not be able to continue their current standard of living. This is not a fun place to be and can cause a lot of stress and uncertainty. By having a goal and a plan can help alleviate stress both now and in the future.
Choosing your goals or knowing where you want to end up is a crucial part of setting your vision.
They help lay the steppingstones to success.
When it comes to our financial lives, common financial freedom goals are often “repay your mortgage” & “replace your employment income”.
These are all fantastic goals.
In our experience, we have found when people attach their values or why this particular goal is important to them, it provides more meaning and increases the probability of achievement. Most of the time past experiences and individual filters will be placed on each goal. For example, if your parents are living off the age pension in retirement, I do not want this to be me and want to ensure I am financially free prior to retirement.
What is important to look at is what type of lifestyle aspirations you want to achieve.
Everyone has different goals and that is ok.
Money doesn’t buy happiness, but the unfortunate reality is that it does buy choices and choices are something that you want at all stages of life.
Values
What is important about it?
You need to know where you are going.
Different goals require different strategies.
It helps shape your career choices
It helps you stay focused.
Methods
how will I get it?
Now you have your goals outlined & why they are important to you, it is time to start building the plan around this to map out how you will get there.
Much like a GPS – you know where you are now, you understand your final destination & now you have to work out the best route to get there.
Many people will opt to do this alone, however if you have had these goals for a number of years & are yet to achieve them, it may be time to bring someone else in to support you & keep you accountable.
Generally most people seek advice & support from family members or spouses, however your finances and goals can be very personal, where you may not want to share your goals or financial situation with your family.
The alternative is to outsource this to a financial advisor who can provide expert advice, support & guidance. This is their job that they do day in and day out. They have the experience of hundreds of clients before you, they understand what works and what doesn't work. You can also lean on them to avoid mistakes as you only have one opportunity at life and you want to ensure you get it right.
However you look to build you plan, ensure it has the steps to get you to achieve your goals.
Obstacles
What is preventing me from having it?
Most people will understand what or who will prevent you from reaching your goals. So putting a plan in place to mitigate these obstacles will be critical to reaching your goals.
However, we need to be mindful that throughout life, markets, inflation, incomes, goals & your health changes. In short, life happens.
Your blueprint or financial plan needs to be fluid. A plan that sits on a shelf couldn’t possibly account for all that life throws at you, so we partner with you & adjust our strategies to accommodate as your life changes.
Measurements
how will I know I am successful?
It is fantastic to have a goal, but what gives them more power is to quantify them.
By making your goals quantifiable they are measurable.
Instead of “I want to be financially free” quantify it – “I want my home unencumbered”.
Instead of “I want to replace my employment income” quantify it – “I want to have $1,450,000 invested to produce $100,000 per annum to live off in retirement”.
Measurable goals also enable you to be able to break them down into smaller bite size pieces or steps.
When you make the effort to not only think through this exercise, but write it down, you are halfway to identifying the reason and motivation for seeking financial freedom.
Without this clarity, we are at the mercy of our whims. Achieving financial freedom is just as much about generating wealth, as it is figuring out what is most important to you.
Other things to consider when seeking financial freedom:
Understand your numbers
what you need for financial security
what you need for financial independence
what you need for financial freedom
What are your dreams
what’s the price of your dreams
what’s your plan
If you have recently won the lotto or come in to a large inheritance, contact our Newcastle Financial Planners who will be able to support you on this new journey.
Source:
https://newcastleweekly.com.au/shocked-anna-bay-mum-snares-33-million-lucky-lotteries-prize/