How to wisely invest £1 million if you win the lottery

Winning the lottery is something that we’ve probably all dreamt about. That feeling of never having to worry about money again is a feeling we would all love to have. I think this is particularly true if you’ve ever been in the tough situation of worrying how you’re going to be able to afford to pay your bills. But even having a large sum of money comes with complications.

Have you ever thought about what you would do if you were to win £1 million on the lottery? I think most of us would start off with buying a nice house mortgage-free, closely followed by a new car and holidays. But doing that might mean that your £1 million quickly disappears. So, what would be the best way to handle and invest £1 million if you were to win the lottery?

Think carefully about sharing your good news

Many of us would love to share our good fortune with our friends and family if we won a large sum of money. That’s perfectly natural! But you need to think very carefully about who you share your good news with. A windfall can very quickly mean that people start to turn to you for money. Of course, you might want to be a little generous with those closest to you, but you also need to think carefully about your own financial future.

If I was to win a large sum, I would only tell my very closest family and friends who I know would genuinely be happy for me and allow me to treat them without taking advantage of my generosity.

Take some time to think about who you want to know before you share your good news over social media, you don’t want the whole world to start asking for your financial help.

Think about your future

Of course, a sudden windfall might tempt you to head out on one big spending spree. But those luxurious holidays won’t keep a roof over your head for years to come. It’s a good idea to set yourself an amount that you’re happy to spend on things like cars and holidays and stick to a limit so that you protect your financial future.

Investing in a home is a great idea. Don’t be tempted to blow your entire winnings on a house though! Whilst this will mean you’re mortgage-free (which is a great place to be), you will have huge running costs on a big house that you might not be able to afford once you’ve spent all your winnings! Think about the amount you’ll need to pay each month just to keep your house going – there’s council tax, gas, electricity and water just to start with. You’ll also need funds to maintain the property too.

Seek advice from a professional

If you’re not used to having large sums of money, then you might feel overwhelmed, I think I would if I suddenly found myself with £1 million in my bank account! It’s a good idea to seek advice from an independent financial advisor. They will be able to take a look at your financial situation and advise you the best way to invest your money. It’s likely that they will charge a fee for this, but it’s definitely worth doing! You don’t want to look back in a few years time and regret what you did with all that money.

So, if you are lucky enough to land a sudden windfall, just take a little time to digest your newfound financial freedom, and think carefully about what to do with it. If you’re sensible, it really could set you up for life.

*This is a collaborative post.