Money Saving Tips for Lottery Winners
You have just won the lottery… First of all, congratulations! This is an exciting time. After you received your winnings, you may start to wonder what the best thing is to do with it. Well, a lot of winners like to spend their lottery winnings and we do not blame them.
However, there is another demographic who is looking to get the most out of their money and have it last them a long time. Investing your winnings is a great option, but it can take a lot of work. So, in this article, we are going to look at money saving tips for lottery winners, to help make those winnings last longer.
Quick Money Saving Tips:
- Explore Savings Accounts
- Pay Off Your Debts
- Start a Business
Having money set aside is one thing, but there are a lot of ways you can turn what you have into more money, by simply leaving it in a specific account.
ISA stands for individual savings account. This is a great option for anyone as it allows you to earn tax-free interest. There are a variety of options available from different providers, so it is worth taking your time to find which rates and methods are available to you.
For example, lifetime ISAs are designed to help you with money to use later in life and would not be an option for someone who wants to access their money whenever they choose with no penalties.
Bonds are another fantastic way to create more money by leaving what you have in an account. Historically, bonds tend to be less volatile and can offer a steady stream of income. Gilts, which are government bonds, are seen as extremely reliable however they often come with significantly lower interest rates.
When it comes to opening a savings account, be sure to talk to a financial advisor and explore all the options available to you.
Paying Off Your Debts
Now, you may be thinking, isn’t that spending money? Well, technically yes. However, paying off your debts today will save you money in the future.
Credit card debt has a habit of racking up quickly and getting rid of those pesky payments and interest rates can be a big relief.
Student loans often follow you for many years. Getting that weight off of your chest can leave room for future financial success.
If you have a mortgage from buying a house, you will be spending a lot of your money on interest. However, the interest rates are traditionally lower than other loans. You will have to speak to an advisor for more information on which debt makes the most sense to pay off for your unique situation.
Start A Business to Save Money
If you have been looking for a sign to start a new business, winning the lottery may be exactly what you needed!
Small businesses are a great way to spend time doing what you love and there are tax benefits that come with it. Each situation is completely unique and depends on what products or services you will be providing, where your initial investment is coming from and so much more.
We recommend speaking with a qualified accountant before embarking on this journey.
The Health Lottery
Winning the lottery is an exciting thing and making the most out of your money can be just as rewarding. If you are looking for more ways to win – explore our online scratch games or join us for our next draw. You never know who might win!