Posts made in April 2017

 (All posts may contain affiliate links. Please see my disclosure policy) 

Frugality is essential for any household outside of a few select multi-billionaires that are dotted around the world. And that includes people who have even won big on the lottery. In fact, did you know that 70 percent of all lottery winners end up bankrupt eventually? That’s an incredible statistic, and there are a few reasons why it happens. We’re going to take a look at some of those reasons today and find out why every family – lottery winners or not – should approach their finances with a careful eye.

(photo credit)

The giveaways

The vast majority of lottery winners are incredibly generous with their winnings. After all, who wouldn’t be when you have just lucked out and now have the wealth to help out family and friends? The trouble is, even a few million dollars doesn’t stretch very far when you start handing out financial help to other people. And you will be surprised at how many old, good friends start to come out of the woodwork and start asking you for help. At some point you will need to turn people down, and, of course, this can lead to problems in of itself.

The lifestyle changes

If you have lived a relatively normal lifestyle all your life, the temptation to become a ‘player’ is a great one for lottery winners. Often, the first thing winners do is move home, throwing a few million casually at a luxury house in an exclusive area. But running a house that size is an expensive job. You’ll find your average bills – such as the heating – are enormous. And if you start buying more luxury goods, eating out more, or taking more luxurious vacations, the truth is your money won’t last five years. And if you don’t reinvest any of that money or use it to earn a better income, you will end up one day waking up to a stark reality.

(photo credit)

The psychological impact of lump sum

Huge lump sum payments can make it seem like you have solved all your financial problems. The trouble is, once you start spending bug, it’s incredibly difficult to stop. According to this Senecaone structured settlement review, one way of getting around the ‘bulk sum’ issue is to use a formal settlement payment plan that gives you a  little money every so often. Don’t forget, with a multi-million lottery win in a standard interest bank account, you have enough wealth generated just from interest to live well.

Bad habits

A lot of lottery winners end up not getting anything out of life, either. Some run away from this issue by drinking too much – others get into gambling. And the end result is often always the same – a dwindling bank account and eventual bankruptcy.

Lack of advisors

Ultimately, the reasons are given above occur for one apparent reason – people who aren’t used to money don’t know its value. If you ever end up winning the lottery – or even another form of windfall – make sure that you speak to people who understand that amount of many. Surround yourself with a team of trusted, reputable financial advisors who know what they are doing, and will keep your money growing, not shrinking.

 (All posts may contain affiliate links. Please see my disclosure policy) 

Frugality is essential for any household outside of a few select multi-billionaires that are dotted around the world. And that includes people who have even won big on the lottery. In fact, did you know that 70 percent of all lottery winners end up bankrupt eventually? That’s an incredible statistic, and there are a few reasons why it happens. We’re going to take a look at some of those reasons today and find out why every family – lottery winners or not – should approach their finances with a careful eye.

(photo credit)

The giveaways

The vast majority of lottery winners are incredibly generous with their winnings. After all, who wouldn’t be when you have just lucked out and now have the wealth to help out family and friends? The trouble is, even a few million dollars doesn’t stretch very far when you start handing out financial help to other people. And you will be surprised at how many old, good friends start to come out of the woodwork and start asking you for help. At some point you will need to turn people down, and, of course, this can lead to problems in of itself.

The lifestyle changes

If you have lived a relatively normal lifestyle all your life, the temptation to become a ‘player’ is a great one for lottery winners. Often, the first thing winners do is move home, throwing a few million casually at a luxury house in an exclusive area. But running a house that size is an expensive job. You’ll find your average bills – such as the heating – are enormous. And if you start buying more luxury goods, eating out more, or taking more luxurious vacations, the truth is your money won’t last five years. And if you don’t reinvest any of that money or use it to earn a better income, you will end up one day waking up to a stark reality.

(photo credit)

The psychological impact of lump sum

Huge lump sum payments can make it seem like you have solved all your financial problems. The trouble is, once you start spending bug, it’s incredibly difficult to stop. According to this Senecaone structured settlement review, one way of getting around the ‘bulk sum’ issue is to use a formal settlement payment plan that gives you a  little money every so often. Don’t forget, with a multi-million lottery win in a standard interest bank account, you have enough wealth generated just from interest to live well.

Bad habits

A lot of lottery winners end up not getting anything out of life, either. Some run away from this issue by drinking too much – others get into gambling. And the end result is often always the same – a dwindling bank account and eventual bankruptcy.

Lack of advisors

Ultimately, the reasons are given above occur for one apparent reason – people who aren’t used to money don’t know its value. If you ever end up winning the lottery – or even another form of windfall – make sure that you speak to people who understand that amount of many. Surround yourself with a team of trusted, reputable financial advisors who know what they are doing, and will keep your money growing, not shrinking.

 (All posts may contain affiliate links. Please see my disclosure policy) 

We each have our own set of skill sets and, for most of us, being good with money and financial matters isn’t one of them. But that doesn’t mean that you have to be a financial dunce forever! In fact, it isn’t quite so difficult to turn yourself into a boffin when it comes to money matters. You just need to dedicate some time to doing your homework and research. For starters, getting familiar with these useful steps can help you sort out your financial situation in a jiffy!

(photo credit)

Start A Budget

First of all, let’s start small. You need a budget. In fact, everyone needs a budget. So this is the first thing you should sort out. Your budget can be as simple of as complicated as you need it to be. Even just having a chart with your weekly and monthly income and expenses can greatly help you manage your money.

Change Your Bank Account

You will probably have, at the very least, two bank accounts: an everyday current account and a savings account. When was the last time you checked the interest on your savings account? If it has been a while, it is time to double check it now. That’s because you might be able to get a better rate with a different bank. It’s also worth thinking of switching to a high-interest savings account as these often come with the best rates available.

Sort Out Your Credit Score

If you have a poor credit score, it will be bringing the rest of your finances down. To fix this matter, you should turn to one of the best credit repair services that really work. These companies can help you fix your current credit, which is invaluable in improving your credit score and rating. Once you do this, you will find that it is a lot easier to get loans and other funding from your bank.  

(Photo credit)

Think About Investments

Once you are able to build up some savings, you should think about investing them. This is the only way they will be able to grow on their own. However, it is a very risky business as investments have just as much chance of losing value. To start off with, think about investing your money in safe investments, such as property and investment funds.

Plan For Retirement

It is also important that you have a solid financial plan in place ready for when you retire. Ideally, you need to get this sorted as soon as possible so that you build up a large nest egg ready for retirement. There are various ways you can save for retiring, but most people choose either a pension or property. If you don’t know which is the best option for you, you should speak to a financial advisor who can advise you on the matter.

Have you been feeling like a financial dunce? Hopefully, this blog post has helped you figure out how you can change all that! If you need any other tips, check my other blog posts.