This article offers financial advice on how to handle a sudden influx of money, such as an inheritance or lottery winnings. It emphasizes prioritizing debt repayment, building an emergency fund, and planning for long-term goals like retirement or homeownership. The article also explores different savings options, including ISAs and stocks and shares, and highlights the importance of investing for long-term growth.
If getting an inheritance or sudden windfall of cash, it can be difficult to know where to put it. Experts tellIf a lump sum of money – perhaps £30,000 – landed in your bank account tomorrow, what would you do with it?What you decide to do with a windfall will depend on your current financial situation.that are attracting heavy interest payments should prioritise paying those off, while perhaps keeping a small sum for any unexpected expenses to prevent them falling even deeper into the red.
Haine suggests keeping aside a bigger proportion of your regular expenses – closer to six to 12 months’ worth of outgoings.Is there anything you’re saving for in particular, such as buying a house, having a child or retirement? And how soon do you want access to your money? Remember not to stash too much in a regular bank or building society savings account as this could mean you breach yourBasic-rate taxpayers will reach their PSA with £1,000 in interest, while those paying the higher 40 per cent tax rate will see their allowance drop to £500.
It’s worth noting, however, that there is a withdrawal charge if you take the money out for anything other than buying a house or retirement.
FINANCIAL ADVICE WINDFALL SAVINGS INVESTING DEBT EMERGENCY FUND RETIREMENT
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