How would you spend your money?
If you were to win the lottery, have you ever taken the time to stop and consider what you would choose to do with your winnings? Most people have a list of the things that they would like to do with their money, however things can get a little bit difficult when you start to get to the end of your winnings and you start to realise that there is no way that you are still able to keep up the type of lifestyle that you are used to. This article will help for you to think about the things that you can do to try and maximise your income from your savings, which should help to keep your lifestyle within your grasp.
- Get an ISA. You can put a small amount of money each year into an ISA, from which you are able to earn cash free interest. In 2011/2012, this amount is £5,340, and this rises with inflation every year. When you have a bit win, you should make sure that you put these small amounts away, as they will be earning much more interest for you than it would be if you were to just place the money into any old savings account.
- Premium bonds. If you have premium bonds, you have the chance to win cash prizes every month. If you have these, you are able to cash them in for the same amount that you bought them for at any time, which means that you will never lose money from them. The maximum amount of money that you can get in premium bonds currently stands at £30,000. With prizes at a maximum of £1,000,000 it stands to reason that it makes sense that you should buy as many as you possibly can.
- Property. With whatever money you have left from your ISA and your premium bonds, you should invest in property. It makes sense to buy properties which are worth less than £250,000 as this means that you will not have to pay stamp duty on them. If you do this, you are able to rent them out for a fair amount of money each month, which means that you will have a stable monthy income, and you will also still be able to cash in on your investment by selling your property whenever you feel as though you would like to do so.
These investment opportunities are risk free. With the housing market at rock bottom, there is not much chance that you will be losing money on your investment. Winning the lottery might make you think that you have endless amounts of money to do anything that you like with, however unless you turn it into regular income you will find that your money will not last forever, and could mean that you get into trouble when you have spent all of your money.