This South Carolina woman won $250,000 off $5 scratch-off ticket from local gas station — and her celebration was caught on video. Do these 3 things ASAP when you get a big windfall

Draft a financial plan with help from an expert

Before spending a cent, you need to come up with a solid financial plan. A good rule of thumb after coming into a significant windfall is to reevaluate your spending habits and outline a sustainable budget.

While $250,000 may seem like a lot of money, if you’re not intentional about how you allocate it, it could disappear pretty quickly. Depending on how much money you’ve come into and where you currently stand financially, consider bringing in a financial adviser. A professional can provide guidance on the best strategies that align with your financial goals — which may also change now that you’ve come into money.

For example, if you have outstanding debt, an adviser can determine the best approach to using your windfall earnings to eliminate said debts — especially if it’s high-interest. You’ll want to go into your meeting with a handy list of any debts and current account balances.

Discover how a simple decision today could lead to an extra $1.3 million in retirement

Learn how you can set yourself up for a more prosperous future by exploring why so many people who work with financial advisors retire with more wealth.

Discover the full story and see how you could be on the path to an extra $1.3 million in retirement.

Read More

Prepare to have to share

Another consideration is the tax implications of your lottery winnings. You don’t want to be hit with a surprise tax bill after you’ve already spent all your prize money.

Many people assume that winning the lottery is straightforward — and that the advertised jackpot would get paid out to the winner in that exact amount. However, lottery winnings are considered taxable income that is subject to federal and (sometimes) state income taxes, depending on where you live.

For taxpayers with lottery winnings over $5,000, the IRS requires lottery agencies to withhold 24% of all earnings for federal taxes. If your windfall puts you in a higher tax bracket, you may owe additional federal tax when you file your tax return.

In South Carolina, the state withholds income tax for lottery winnings over $500. But many states — including South Carolina — impose an additional tax on lottery winnings. The Palmetto State tacks on an extra 7% tax on lottery winnings, something the winner from the gas station will have to take into consideration.

A financial adviser or tax planner can help you plan accordingly so you set aside enough to meet any tax liabilities.

Set up an emergency fund

While you'll likely want to spend and invest most, if not all, of your windfall, setting aside a portion for an emergency fund maybe a wise decision.

Having extra cash that is easily accessible can help you weather any sudden situations that may arise, from helping pay unexpected medical bills to repairing a leaky roof or broken furnace.

How much you’d set aside depends on your financial situation and lifestyle. Many experts suggest having at least three to six months' worth of savings to cover your regular living expenses in the event of a job loss or major home repair. If you’ve come into a sizable windfall, you may even want to set aside enough money to cover bills for an entire year. J

Keeping your emergency fund in a bank account that earns a bit of interest is a great strategy. This way, you’ll earn more money while your cash is parked in the bank. Many of the best high-yield savings accounts offer competitive interest rates, allowing you to further maximize your winnings.