Lump Sum of Money: Managing & Protecting.
Have you recently received a large amount of money? Check out some hints and tips that may help you and your family manage and keep your money safe today and for tomorrow.
Have you recently received a large amount of money? Check out some hints and tips that may help you and your family manage and keep your money safe today and for tomorrow.
Here are some options to think about when you have a large sum of money come into your bank account.
Begin by listing all the organisations or people you owe money to, how much you owe, your current monthly repayments, and the interest rate. Consider paying down your debt with the highest interest rate and fees first.
Things don’t always go to plan and sometimes the unexpected can cost us a lot of money. Imagine if you had a savings account with money that you could use to pay for the unexpected. It’s a good idea to keep this money separate from your everyday spending money. A savings account allows you to put money aside for tomorrow or when it may be needed.
A budget is a tool that can help you to plan how you’ll use the money and when. A budget helps you work out how much money is left over after you’ve paid your bills and other expenses.
Investing your money means putting your money away in the hope that it will grow – earning money on your money. There are a number of ways you could invest your money, including shares, property, online savings accounts or term deposits. Before investing it’s very important to understand that there are risks involved in investing and whilst money can be made, money can also be lost. Consider time frames and invest accordingly.
Do you have a will? A will gives instructions on who will get your money and other assets should you pass away. It’s really important to make a will or update it should you receive a large sum of money.
Once you’ve received the money. How do you protect it? Here are a couple of tips to keep your money safe:
A bank account helps to keep your money safe. Money could be easily lost or stolen if it’s kept at home or in the car.
Sometimes there will be pressure from family and friends when they know you’ve received a large sum of money. Whilst it’s good to be able to help them out, it’s important that you also consider making sure you have enough money yourself to pay your bills today, tomorrow and in the future. If you give all your money away, you may find yourself struggling to pay your own bills in the future and maybe having to go into debt to cover your bills.
Scammers can sometimes be tricky to spot. They’ll often ask you for your personal details or bank details, or even to send them money. Scammers could even pretend to be someone that you know and trust to get your information. If something doesn’t quite look right or make sense, or if it sounds too good to be true, it probably is a scam. Walk away and don’t give them any personal information or bank account details.
The services below can offer additional help for you to manage your lump sum of money:
Westpac acknowledges the First Peoples of Australia and recognises their ongoing role as Traditional Owners of the land and waters of this country. We acknowledge Westpac’s Aboriginal and Torres Strait Islander employees, partners, and stakeholders, and pay our respects to their Elders, both past and present.
This information is general in nature and has been prepared without taking your objectives, needs and overall financial situation into account. For this reason, you should consider the appropriateness for the information to your own circumstances and, if necessary, seek appropriate professional advice.
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