While you may never win the lottery, there are other opportunities for windfalls of money to enter your life, according to a Santa Clarita financial advisor.

The chances of receiving a bonus at work, a tax refund, a pay raise or an inheritance are more realistic than winning the lottery, said Arif Halaby, a Certified Estate Planner and president/CEO of Total Financial Solutions.

Show Host Arif M. Halaby

A question that may be more valuable than the lottery payout is, whether or not you will truly be better off afterwards.

Halaby’s son, Logan, who co-hosted the most recent “Total Financial Solutions Safer Money Hour” on KHTS AM-1220, noted that 70 percent of people who win the lottery or some other massive windfall often find themselves bankrupt within five years.

Related: Santa Clarita Financial Advisor: Avoid This Potentially Devastating Mistake During Holiday Shopping

How you spent, saved and budgeted before your win is most likely how you’ll continue to act afterward, regardless of whether you’re spending $100 or $1,000,000, according to Logan.

“I have seen a consistency … that people do not know how to handle the lotto if they have a history of not handling money properly,” said Arif Halaby.  

Arif Halaby recommends placing half of the payment into savings and/or an emergency fund and then immediately paying off debt.

“The ideal emergency fund is about six to eight months worth of how much you spend,” said Logan. “This fund should factor in food, shelter, clothing and insurance costs.”

He continued, “The smartest thing is to focus on the debt that you have; specifically, the debt that is the most expensive. (The) interest rate and the payment … combined along with how much you owe can turn into a formula, and you can figure out which debt actually costs you the most money.”

Forming good money habits today, regardless of your salary, is how you can get more use out of your money, Halaby added, noting that parents can play a huge role in teaching their children positive money management skills.

Arif Halaby encourages parents to “talk about money, talk about a rental property that you own, talk about the stock market, 401(k)s, the difference between annuities and mutual funds — have those conversations.”

He continued, “If you learn how to manage what you’re currently paid, you will be worth more money. When you learn how to manage what you are currently paid, you will be more valuable to those around you. When you learn how to manage what you are currently paid, you will make and keep more money.”

Total Financial Solutions offers assistance with preparing for retirement and financial planning in Santa Clarita and the surrounding valleys. Santa Clarita financial advisor Arif M. Halaby, a Certified Estate Planner, and Total Financial Solutions staff work with people of all ages, helping them protect, grow and preserve their assets through an individualized approach. Arif Halaby is also the host of “Total Financial Solutions Safer Money Hour” on KHTS AM-1220. Launched in 2004, the show offers listeners from Santa Clarita financial planning tips and guidance for dealing with today’s ever-changing financial needs.  

Total Financial Solutions, Inc.

24322 Main Street

Newhall, CA 91321

661-753-9683

800-990-7344