Winning the lottery is the ultimate dream for those who play. You took the risk, played and won. Fantastic. You elected to get the annual annuity payments and want to live off the interest. According to Mega Millions, in 2010, for every £650,000 in the jackpot, you will receive approximately £25,025 per year before taxes. The interest amount probably won't allow you to have a lavish lifestyle, but with good planning and sound judgment, you can have a very comfortable lifestyle.
Write down everything that you owe. Look at your credit report and all of your mail to ensure you capture everything.
Make a budget. Write down your monthly debts in a priority order starting with the highest monthly payment. Include food, gas, and miscellaneous expenses. Refer to the budget template in the resources section.
Add up the monthly payments and multiply the total by 12 to determine if you can truly live off of the annual interest payments. If your annual total was more than you would get in interest payments per year, continue working at your current job or consider getting a job to help you pay down debts to fit within the amount you make annually on the lottery interest.
Pay your monthly debts on time. Use any money left over to pay down debts early.
If you have considerable debt, don't plan to quit your job right away.
Making rash decisions, such as buying lavish cars and houses, can cause you to suffer financially. Now is the time to make good decisions.
Tips and warnings
- If you have considerable debt, don't plan to quit your job right away.
- Making rash decisions, such as buying lavish cars and houses, can cause you to suffer financially. Now is the time to make good decisions.