Excited young man with a handful of cash

Everyone wants to win big with the lottery. History has proven that many lottery winners end up spending all their winnings and losing everything. One person took to the internet to ask for advice on their recent lottery win.

The Big Win

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The OP (original poster) won the lottery and took a lump sum upfront of just over $800k. He has around $70k of debt they’d like to pay off and also want to purchase a property. After that, he would still have a fair bit of money left over. This would also free up time to enjoy his photography hobby on his terms.

He took to a popular online forum to ask if he lived modestly and if he could stretch the remainder of his winnings over 20 years. Here’s what the internet had to say…

Find Something You Enjoy

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“Honestly, I’d say find a part-time job or hobby that makes money that you enjoy, and start investing what you have saved in relatively low-risk investments,” someone suggested.

Seek Advice

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A person questioned, “Like the others, speak to a financial advisor. Now, I think it might be possible. But you kinda answered your question…you’re 40 and even “stretching” you think it’ll last about 20 years. So you’ll be 60 and broke? Where will your earnings come after that?”

Buy a Rental Property

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“Buying a rental property is the right idea. Houses in my city cost around $500k. It costs about $30k a year to rent them. If I resign a 4th lease, I’ll have spent more than $100k on my rent. It sucks,” a user said.

At Risk

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“I think you are at an age where you are just on the edge in terms of risk of not having enough. You probably could do it, but you have little room for unexpected issues or expenses,” a person said.

Educate Yourself

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“At 40, I don’t think you could retire off of that unless you invest it wisely. Before buying a property, educate yourself by reading and seeking out information,” someone shared.

Invest the Rest

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“Pay off your debt, buy the property, and invest the rest so you can get a monthly return to live off of. If you need to return to work for any reason, do so,” someone said.

Live Off the Interest

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“A planner will tell you exactly what to do, but if you want to retire, I think it’s best to put the $800,000 (less the debt you pay off) into the stock market and live off the interest you will make. Save a few years and then buy a place/studio,” someone said.

Save a Good Amount

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“Good for you coming into some serious $$$. I would recommend putting a good amount in a high-yield savings acct (5% in the US currently). Then, work doing something you enjoy, which also makes you a little bit of money,” one person said.

Costs Will Increase

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A user said, “If I retire in 25-30 years, things will be much more expensive than right now. On top of that, I imagine healthcare costs will go up as I get older. If possible, I would like to leave enough to split between the kids so that they are set up pretty well.”

Learn To Make a Living

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“Starting your enterprise with that money is a great idea. With that kind of windfall and dedicated effort, you should be able to learn how to make a decent living in photography,” someone said.

Enjoy Your Life

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“I think it’s a perfectly fine idea. Ultimately, all that matters is that you enjoy your life to the fullest extent, and this certainly sounds like it will help you achieve that,” one user replied.

Fine With No Kids

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“If you don’t have kids, you’ll be fine. See if there’s a computer class you can take so it can get help you land a job from home. Still, have your hobby and enjoy your time,” someone said.

It’s Subjective

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“Good idea” is so subjective. You might not be living comfortably in your old age if photography doesn’t work out. But you might have a comfortable 10-20 years if things are generally smooth. You have to decide what’s more important to you,” someone shared.

14 of the Best Frugal Hacks To Save You Money (That Most People Ignore)

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Most of us want to save money when we can. Why spend money on unnecessary things if you can find an alternate way to achieve the same goal while saving some cash along the way? It’s good to find creative ways to cut back on your expenses and save, but often, there are simple hacks to save right in front of us, but most people tend to ignore them. Here are 14 of the best (and easiest) ways to live frugally that don’t require a ton of effort. 14 of the Best Frugal Hacks To Save You Money (That Most People Ignore)

Avoid These 5 Money Mistakes to Achieve Financial Stability

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Financial stability provides peace of mind, freedom from debt, and the ability to enjoy life without constant worry about money. However, achieving financial stability requires careful planning and discipline. And along the way, it’s important to avoid common money mistakes that can set you back as you strive to achieve financial stability. Avoid These 5 Money Mistakes to Achieve Financial Stability

15 Reasons People Feel Like They Never Have Enough Money

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Actively saving and living frugally may lead you to think you’re getting ahead, but when you look at the big picture of where your money is going, the bills, food, and never-ending expenses make it seem like it’ll never be enough. Someone was asking for support online and asked fellow users if anyone else felt like they never had any money? Overwhelmingly, people agreed, so if you’re feeling broke, these people share similar struggles. 15 Reasons People Feel Like They Never Have Enough Money

7 Crucial Sinking Funds Every Budget Should Include

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How many sinking funds categories do you currently save for? If you’ve been budgeting for a while, you probably know all about sinking funds and why they’re such an important component of a budget, but are your sinking funds actually protecting your budget when you need them to? 7 Crucial Sinking Funds Every Budget Should Include

17 Things People Would Love To Own, But Can’t Afford

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It sucks when there is an item you wish you could own but remains out of reach—daydreaming until the day you have the money to own it. Recently, people participated in an online poll that asked, “What is an item you would love to own but can’t afford to?” Here are some of the top responses. 17 Things People Would Love To Own, But Can’t Afford

Inspired by this thread – photos for illustrative purposes only.

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