In Spain, the day is approaching when thousands of people wait with bated breath for the results of the Christmas lottery. El Gordo is more than just a chance to win big—it’s also a test for those lucky enough to strike it rich. Dreams of a carefree life can quickly give way to stress and unexpected challenges if winnings aren’t managed wisely.
The first emotions after winning are euphoria and the urge to share the joy with loved ones. However, financial experts advise against announcing your good fortune too soon. The fewer people know about your win, the easier it is to avoid pressure from relatives, friends, and even banks that may try to influence your decisions.
Paying off debts
One of the first steps experts recommend is to take care of any debts. Closing overdue loans and liabilities is especially important to avoid paying extra interest and running into unpleasant consequences. It’s also wise to carefully review the terms for early repayment of a mortgage or other loans: sometimes there is a fee for this, and it’s not always the most advantageous option.
If you have no debts, it’s best not to rush into major purchases. Financial consultants recommend avoiding impulsive decisions and not giving in to the temptation to invest all your funds in a single project or product that promises quick profits. The market is full of attractive offers, but often they hide risks that aren’t mentioned in advertising.
Investments and risks
Many lottery winners dream of living off the interest from their invested capital. In reality, even a large prize shrinks considerably after taxes. For example, from a winning El Gordo ticket, about 328,000 euros remain after taxes. If you invest this in conservative instruments with an annual yield of 2–4%, you’d receive between 6,000 and 13,000 euros a year. That’s a nice supplement to your salary, but not enough to quit your job entirely.
Moreover, inflation gradually erodes the real value of your savings. When choosing investment products, it’s important to consider not only potential returns but also liquidity—the ability to quickly access your money if needed. Some instruments only allow you to withdraw profits under certain conditions, and the actual tax burden may be higher than expected.
Diversification and financial literacy
Experienced financial advisors recommend not putting all your money into a single asset. It’s better to spread your capital across different areas: keep some in deposits for unexpected expenses, invest part in real estate or retirement plans, and put the rest into higher-risk but potentially higher-return assets. This approach lowers the chance of losing all your capital due to an unsuccessful investment.
Before making any decisions, it’s worth improving your financial literacy. If your knowledge is lacking, it’s better to consult a professional advisor who can help you choose the best options based on your individual goals and risk tolerance. Don’t trust promises of high, risk-free returns — such offers are usually traps.
Maintain balance
Psychologists and economists agree: a sudden change in lifestyle after a win can lead to disappointment. It’s not wise to quit your job or change your habits right away. Remember, a windfall is not a guarantee of a carefree future, but rather an opportunity to improve your finances with the right approach.
It’s recommended to keep part of the funds readily available in case of unexpected expenses. Life is full of surprises, and even a large sum can disappear quickly if spending isn’t controlled. Winners are advised not to fall for the illusion that they can now afford everything, and to stay focused on long-term goals.
In the end, winning El Gordo is not just a joy, but a responsibility. Only careful decisions and caution will help preserve and grow your winnings.
