How often do you play the lottery? When was the last time you won a substantial amount? If you play the lottery on a regular basis, or even if you’ve only played once or twice in your lifetime, you might have considered what you’d do with the money if you were to win big. So many winners take their prize money and ruin their lives, without investing, just splurging cash until it’s gone. How can you wisely invest £1 million if you were to win the lottery? Let’s take a look at some ideas!
Who Do You Tell That You Won The Lottery?
How to invest if you win the lottery is a tricky thing and also rather personal. With a big lottery win comes a whole bunch of pressure. If you decide to announce to the world that you’ve won, suddenly people start crawling out the woodwork from your past looking for their slice of your winnings. I’m not saying not to help people our, loved ones who you know could use a hand. Support charitable causes that mean something to you but be aware that money can attract the wrong kind of people and it’s easy to get carried away with your new found wealth. You need to make a plan.
The Here And Now
One of the things to concentrate on is the here and now. Can you get rid of your debt? That’s a huge start because you’re investing in yourself, getting yourself out of a situation of debt which will stop you paying interest. Are you able to pay off the mortgage on your house? Maybe you have been wanting to move house? Or buy your first house! Maybe your parents have always worked double jobs and lived in rented houses, moving every few months without putting roots down. Give them a place to call home. Investments might be with the lottery winnings but they don’t all have to be about money. Be careful not to start buying loads of flash cars and taking lavish holidays. You may have won a lot of money but it will quickly run out if you change your lifestyle too much.
Your Financial Future
What does your future look like? Start planning for your retirement now with this lottery win. Don’t forget that interest rates have plummeted recently and you’re lucky to get 1% back on your money right now. If you’ve won a lot, consider locking it away for a number of years so it will grow. Be aware though, that the FSCS will only cover the first £85k in most accounts. So you might need to open more than one and max out a few different accounts to ensure your cash is safe. Perhaps property investment is a better idea as it will grow in value. Many people start businesses but lots of businesses fail! It is a great idea to get some expert and professional advice. This is your life and your future that we’re talking about. As well as the future of your future generations. Think about your children, your grandchildren and their future kids too. You need to sort out your will as well. Where will this money go when you die?
Wisdom, patience and planning are just a few words to use when you consider what to do with an unexpected windfall. Don’t see pound signs and blow it all within a year. Use it as a way to make your current living situation better, without potentially losing it all and ending up in a worse situation than you are now.
Passive income
Although winning the lottery means you wouldn’t have to work again, you probably want to still have a passive income.
There are plenty of passive income UK ideas, including buying rental properties or investing in stocks and shares.
