What to do if you Win the Lottery; the Sensible, Charitable and Fun (AD)
AD – Collaborative post
As well as talking about all the practical things you can do to improve your finances, one of my favourite questions to ask people is ‘what will you do if you win the lottery?’. It’s probably no surprise (I created a money blog), I love talking about money. I love sharing my money saving tips, and writing about new ways to increase your income.
Let’s say you come into a large sum of money, how would you spend it? Would you be sensible? Would you be charitable? What treats would you buy yourself? In this post I look at how to invest lottery winnings and what money moves I’d make if I was to ever win the lottery.
Being Sensible with Your Money
Before quitting your job, buying a fancy car and moving to paradise it’s worth staying grounded if you win the lottery and planning some sensible money moves.
The first thing that I would consider if I was to win the lottery is clearing my mortgage (or other debts). Paying off your mortgage can save you £1,000’s in interest meaning that you can hold on to your winnings for longer. With one mortgage paid off you could also consider buying additional homes and renting them out to boost your income further.
Next I’d look at where I’m storing my new found winnings. By keeping your money in a UK bank, building society or credit union, up to £75,000 of your money is protected by the FSCS if the bank fails or goes bust. You also get an annual tax free allowance of £20,000 in an ISA. Think about the most cost effective and secure places to hold you money.
Thinking about the future
Maybe you have something that you’re passionate about or have always wanted to pursue a career in a different field. Winning a large sum of money opens new doors and allows you to really look at your career or business options.
You could invest your money in yourself and start your own business. Whether your passion is baking, crafting, art, looking after animals or photography, find something you genuinely enjoy and make a profit of. If I won the lottery I would grow my blogging business and create more profitable blogs. I love my day job but it would be my dream to blog full-time.
Try your luck further
Premium Bonds allow you to win between £25 and £1 million tax free. They are an investment product issued by National Savings and Investment (NS&I), but unlike other investments, where you earn interest overtime, you are entered into a monthly prize draw.
If I was to come into a large sum of money premium bonds would definitely be a consideration. While winning money from premium bonds isn’t a given it is a smart way to invest in a further chance to win more money.
Anything invested in premium bonds is backed by HM Treasury and it’s 100% secure – so while you may not win a penny, you also won’t lose anything either.
Be Charitable
Okay so I know that I’m a money blogger and I write about how to boost your income and keep your money in your bank account… but I’m also a big supporter of charitable endeavours.
Winning big money allows you to support the charities and causes you care about. You could donate a lump sum of money and even volunteer to help a charity you care about.
Over the past year I’ve been trying to increase my charitable donations and I’d love to donate a portion of my winning if I had the chance. It’s always been an ambition of mine to set up my own hardship charity too.
Treat Yourself
While being sensible and thinking about the future would be the first things that I’d do if I was to win the lottery, I’m sure everyone would have at least a small shopping list or holiday that they’d like to treat themselves to.
Many people regard travel as an investment. Whether you take small city breaks or longer cultural holidays, you will always be developing yourself with the experience of travelling. I’ve been interrailing around Europe, visited East Africa and worked in America – each time I’ve made new connections, learned new things and gained valuable perspective. I’d love to visit Asia and Australia if I was to win a significant amount of money.
I’m not too materialistic but I’m sure that a shopping spree would be inevitable with a big financial win. I’d love to create a home gym, expand my home, and buy a new laptop. I’d aim to treat myself to sensible purchases, those that will result in a later return on investment or help me boost my business or health.
Well there’s what I’d do if I was to win the lottery. What will you do if you win the lottery or similar large sum of money?