Let’s say the hypothetical has genuinely happened and you’ve won the lottery. Amazing news! There’s a cool million sitting in your bank account and you’re staring at it in awe. What’s your first instinct? A shopping spree, a new car, a private jet? Winning the lottery is a dream come true, and you’ll be richer than you could ever have imagined. But, get this, a million isn’t a lot of money. You could end up blowing through it quickly if you’re not careful. So, here’s a sensible list of the best way to spend your hypothetical millions.
Buy your house in cash – As you grow older, the biggest drain on your finances is your mortgage payments. They will stifle your paycheck and create a financial strain on your life. Paying off the full mortgage on your house will give you a lot of room to breathe. You’ll free up your income (yes, you should carry on working!) and send more of it to your savings.
Invest it. – Did you know that sensible investing yields much higher interest than your average savings account? You ought to take your winnings to a financial advisor and get some advice on investing. Put some of your money in good, strong stocks that pay dividends. There are plenty of risk-free investments that could return 5% interest. If you’re clever, you could turn that million into two million.
Charity – You’re in the enviable position of never having to worry about money again. Most aren’t that lucky in their entire lifetime. Others still don’t have access to essential water, food, or housing. You could use your new found lottery winnings to help out those less fortunate than yourself. Give something back to the community and you’ll also feel a lot better about yourself.
Help your family – Many people buy lottery tickets online with their friends or family. A syndicate can actually improve your chances of winning as more numbers are covered. It’s a great way to help your entire family and you can all benefit from the winnings. If you won the money by yourself, you could help your family out with a share of the money too.
Put it in a savings account – Some lottery winners opt to keep the money locked up in a high interest savings account. If you’ve got enough money stored, you can theoretically live off the interest payments. You’ll never have to touch the initial winnings! It might be a dull way to entertain your money, but it will give you a wonderful retirement pot. You could then pass it on to your children or grandchildren.
Enjoy it – We’ve given you plenty of sensible advice here. But, don’t forget to enjoy it too! You’re in the unique position of having millions in your account. Set aside a small amount to do all the things you’ve wanted to do. Travel the world, buy a new car, and treat yourself. Don’t waste this amazing gift.
Okay, so this might all be a flight of fantasy, but someone’s got to win, right? And it doesn’t hurt to have a plan in place. Just in case!