October 06, 2015
A sudden windfall can be life changing…especially if you use the money wisely. I bet you have drifted off, blissfully imagining what it would be like to win the lottery. So many possibilities with so much money. Sadly, the odds of winning something like Oz Lotto can be as high as one in 45 million. So it doesn’t pay to peg your hopes of personal wealth on a weekly ticket.
But here’s the thing. Plenty of Australians will receive a valuable windfall through an inheritance or even divorce. The question is, how would you spend an unexpected windfall of, say, $50,000?
How not to spend a windfall
Before drawing up your hypothetical bucket list, let’s look at what not to do. The most important step is to simply sit tight for a while. Avoid rushing out and squandering the cash on a wild ride of retail therapy. It’s what plenty of big lottery winners do, and while it may be fun at the time, it proves to be a serious mistake for many.
Stop, think, plan
A key step with any windfall is to seek expert advice about the best way to use the money. If you’re a home owner for instance, we can crunch the numbers to show how much you could save by tipping a $50,000 windfall into your home loan. Sure it may not sound as thrilling as hiring a yacht to sail the Greek Islands, but you may change your mind when you see the savings on interest charges. Plus you’ll be mortgage-free a whole lot sooner. Now that’s exciting.
Give your home a makeover
Maybe you’d prefer to use the money to spruce your home up. Fifty thousand dollars would buy a fabulous new kitchen - with enough spare change to give the bathroom a facelift too.
You could even spend the money on your upcoming wedding. Already married? How about a lets-do-it-again-only-better second wedding. With $50,000 in the kitty you could hire your own personal chef to cater for guests. Heck, you could probably buy the restaurant.
Here’s a thought. How about using a $50,000 windfall as down payment on an investment property. Now that could really supersize the long term value of your money.
The fact is, any sudden change in your financial position can significantly shape your future, and it doesn’t have to be a big windfall to make a valuable difference. For professional help deciding how to make better use of your money.
Contact either Owun, Suzanne or Costa on 02 9517 1818 or email@example.com to discuss your options. Or, if you feel like dropping in at our office, we are located at Suite 106, Flourmill Studios, 3 Gladstone Street, Newtown 2042.
Be sure to share our blog on Facebook and Twitter and let others join the conversation!