12 Things Lottery Winners Should Never Do After Hitting the Jackpot

Winning a billion-dollar lottery jackpot sounds like the ultimate dream. But once the excitement fades, one big question remains: How do you keep the money?

The latest $1.04 billion Powerball jackpot, won by a single Illinois ticket, is a reminder that sudden wealth can change everything. Many lottery winners have lost their fortunes because of poor decisions, overspending, bad investments, or giving away too much.

Here are 12 major mistakes to avoid if you ever hit the jackpot:

1. Don’t Forget to Sign or Claim Your Ticket

It sounds basic, but failing to protect or claim a winning ticket can cost you millions.

Lottery tickets have expiration deadlines that vary by state. Sign your ticket immediately, store it somewhere secure, and contact the lottery authority when appropriate.

2. Don’t Tell Everyone

Winning millions can instantly attract attention from relatives, strangers, scammers and even criminals.

Modern scams can involve stolen personal information, AI-generated voices and deepfake videos. If your state allows winners to remain anonymous, keep your identity private for as long as possible.

3. Don’t Automatically Choose the Lump Sum

Getting a huge cash payment upfront is tempting, but it isn't always the best choice.

Compare the lump sum with the annuity option and talk to qualified tax and financial professionals before making a decision.

4. Don’t Assume You’re a Money Expert

A massive bank balance doesn't automatically make someone good at managing wealth.

Build a professional team that can help with taxes, investments, estate planning, privacy and asset protection. Taking a few months to slow down before making major financial decisions can also prevent costly mistakes.

And remember: lottery winnings can be subject to federal, state and local taxes.

5. Don’t Ignore Your Debts

A jackpot is a chance to get your finances under control—not an excuse to keep piling up debt.

Paying off mortgages, credit cards, loans and other major balances can give you a much stronger financial foundation.

6. Don’t Become a High Roller

Luxury vacations, expensive cars, casinos and extravagant parties can burn through millions surprisingly fast.

Once an expensive lifestyle becomes normal, cutting back can be extremely difficult.

7. Don’t Buy Everything for Everyone

Friends and relatives may suddenly have plenty of reasons why you should help them financially.

Giving is fine, but unlimited generosity can become a financial disaster. Set clear limits instead of becoming everyone's personal bank.

8. Don’t Throw Away Your Budget

Even a billion dollars is a finite amount of money.

A realistic budget helps control lifestyle inflation and keeps major purchases from slowly eating away at your fortune.

9. Don’t Fund Every Friend’s Business Idea

Winning the lottery can turn you into an instant target for business pitches.

Friends may ask you to invest in restaurants, startups, cryptocurrency or other risky ventures. Before investing, look at the person's experience, business plan and track record—not just your relationship with them.

10. Don’t Give Away Your Entire Fortune

Charitable giving can be incredibly meaningful, but giving away nearly everything can leave you financially exposed later.

Be generous with a plan. Estate and charitable planning can help your money support causes you care about without putting your own future at risk.

11. Don’t Try to Live Like a Celebrity

Private jets, giant yachts, luxury estates and other trophy purchases come with enormous ongoing expenses—not just huge price tags.

Maintenance, insurance, staffing and taxes can turn expensive possessions into long-term financial burdens.

12. Don’t Think Money Puts You Above the Law

A huge bank account doesn't change the rules.

You still have to pay taxes, follow the law and treat people responsibly. Legal problems, lawsuits and reckless behavior can destroy wealth just as quickly as overspending.

One More Thing: The Lottery System Matters

There is another risk winners rarely consider: the financial condition of the state operating the lottery.

Illinois experienced a budget crisis in 2015 that temporarily delayed lottery payments above certain amounts. Winners received IOUs while lawmakers worked to authorize the funds needed for payouts.

The lesson is simple: winning the lottery is only the beginning. Protecting the money may be the harder part.

The smartest jackpot winners aren't necessarily the ones who spend the most. They're the ones who slow down, protect their privacy, control their spending and get professional help before making life-changing decisions.