How to manage a million pounds
Tonight, as part of the Euro-millions lottery there will be a draw for the UK Millionaire Raffle. In theory, 100 millionaires could be created assuming all the winners claim their prizes. A million pounds, it sounds such a lot of money…
What would you do if you won? There was a time when you could have put it in the bank and lived off the interest. In the old days you could have bought an whole estate of houses for a million quid. How times change! Things are so expensive now and getting more expensive as prices rise and rise. That is inflation and money doesn’t buy as much as it used to. A million pounds won’t even buy a mansion. The inflation rate for June was 2.9%. That means that if I win a million tonight, it could lose it’s buying power by £29,000 or more in the first year alone. That’s more than average earnings. That’s over 500 quid a week I would be losing as the Bank of England devalues my million!
I don’t think I’ll be buying a mansion and a super car. I read somewhere about buying a beach home on a private island with a boat to get to it. It would be a very small island and a very small boat for a million quid. A small beach hut would be easy to clear though. Right?
I am a practical person, most of the time. A small house will do me. I could stay where I am. I live in a small house. I think I would have the garden landscaped. I looked at the lawn earlier. That would create a little work for local tradesmen. I would have the house redecorated too.
If I’m having the drive block paved. I could consider a new car to put on it. My car never breaks down though. Why change it? It’s only 16 years old… I could have it re-sprayed and customised, it would look better than new!
I’ve just bought a new camera, but I wouldn’t mind a full frame camera with all those filters and lenses that the professionals have. I could use some money to have an exhibition and have some pictures printed really big!
There are some local charities I would like to become involved in and money would help make those more successful. There are a few people I would like to help too.
My million isn’t going to last long if I keep spending it and inflation keeps eating away at it. I am quite good at investing on the stock market. I could probably make 100,000 a year investing it; 50,000 at least. I could probably do everything I want with returns on investment without spending the million. That sounds like a good idea.
They say money makes money. Look at J. K. Rowling, she wrote a book under a pen name Robert Galbraith and as soon as people knew it was her, sales of the book soared and she made loads more money. I wrote a book. If I was a millionaire, I suppose I could get it edited and get loads of free publicity from all of Fleet Street and beyond. They would probably ask me to be on the BBC!
I wonder if people would flock to my website to read what I was doing with my million? Maybe, I could charge people to subscribe? I could make another million like that! I’m not greedy, but they do say people appreciate things more if they have to pay for them.
I suppose many people would have overseas holidays, but I’m not that keen on travel. I haven’t seen all of this country yet either! I don’t think stressing out in airports would make me any happier and a luxury cruise would worry me. No, if I am going to have a holiday, I would prefer something relaxing.
The community I live in is important. I thought the recent carnival improved community spirit a little. In the old days they had an annual fair. Occasions where people have an excuse to get together, improve communities. I would try to support things like that. Happiness is about being contented in the place you live. I might not be able to change society as a millionaire, but maybe I could make the community I live in a little better. A million quid isn’t that much really, is it? The jackpot is forecast to be around 13 million; that sounds unlucky, but I’ll risk it…
What would you do with a million pounds? Please share your thoughts in the comments box. You can also follow me on Twitter. I’ll need a new phone when I’m rich, so I can tweet all the latest news!
- There is a lot more stimulus on the way (moneyweek.com)
- Hidden Millionaires: Lessons From Unconventional Money Management (quicken.intuit.com)
- Pound drops over fears of Bank of England stimulus (thisismoney.co.uk)
Just think, Mike. Win £1,000,000 and become a millionaire! Spend £1.00 – and that’s the end of that title!
Perhaps it’s just as well I don’t do the lottery 🙂
Hope you are OK, my visits everywhere are intermittent. So much to do….
26, July 2013 at 11:28 am
I don’t usually do the Euromillions. I just buy the ones for the UK lotto and I intend to change that when they put the ticket price up! I have fun playing the stock market and so I could have even more fun with a million quid! My life wouldn’t change much though. It would be good to do more in the community though.
Thanks for visiting.
26, July 2013 at 12:00 pm
Dear Mike, thank you so much for writing a great article on EuroMillions. I agree that you could have bought a lot more with £1,000,000 pounds at least 5 years earlier.
Actually, most of EuroMillions players are still pretty optimistic about “Investing” their winnings into a bank account 🙂
I think the main issue with Euro Millions jackpot lies with money management. As a lot of people start to spend their money on really expensive things without considering all the future expenses.
26, July 2013 at 3:07 pm
Yes, many people aren’t used to investing. The main investment for British people is their home. I don’t think I would choose a bank account except for some of it in a current account. I make 4.5% with Zopa and a lot more on the stock market now!
Thanks for the comment.
26, July 2013 at 3:57 pm
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AS A KID, IT WAS THE POOLS!
I used to always daydream the same thing:
My Mom had her first ‘brand new car’ …… and 15 years later it was still her pride and joy, To my Mom, it was still the brand new X reg my dad got her.
(You will have to work out the year of the x reg Mike, I’m no good with reg plates)
I longed to get her another brand new car, another fiesta like her old one, (That needed the choke pulled out and held for the fist few miles … do you remember the choke? lol)
My plan was to win the pools (A cool one million) Buy her a brand new fiesta and park it up the road. … then …
I was going to knock on the window and shout “Mom … I’m going to smash your car up”
Then I would start attacking it with a big hammer!
I knew exactly what my Moms reaction would be: Horror & unable to move – realisation that her baby Fiesta was wrecked – And then ….. She would find her feet and take chase.
My plan was to run as fast as I could down Berkshire Cst and as I neared the brand new car I was going to chuck the car keys to her.
But even in my dreams she always caught up with me …. just as she would have done in real life.
I don’t do the lottery, scratch cards or any of that stuff.
I have never really desired money for myself, and now that its too late to run down the street with my Mom at my heels (if only … sigh)
I have no need to win a million or 10 million ….. not for 12 years have I yearned to win!
29, July 2013 at 3:07 am
I get frustrated because I often can’t help others when I want to, so a million would help! I don’t really need a new car. The only problem I have with mine is the battery. It was flat again yesterday! I might lash out on a new ‘calcium’ battery with a 4 year warranty. I bought a new freezer last week, so enough spending for this month!
If I win the lotto we could have a good ‘party in the park’. Get the caterers in and have a beer tent! I think Wednesbury as a community has gone down hill a little. I blame Sandwell! They have no real sense of history. I don’t like all the modern stuff in the park. I preferred the the pavilion to their skate board thing and fitness equipment. I never played bowls, but I liked to watch.
They have a new exhibition in the art gallery I think. I’m not sure when it opens but it’s better than that pink monstrosity up West Brom! I might go and have a look.
Thank for the comment. I must get on, writing on a Monday morning is always hard!
29, July 2013 at 9:06 am
One million pounds is a huge amount for me. It is nice to see that you will buy camera and help charity with that amount instead of splashing the money to other things. I have read stories of lotto winners who did not have much luck in managing their winnings so I guess I will migrate somewhere else and work there if I have million pounds.
20, August 2013 at 7:54 am
Yes, a million is a lot of money, but not quite what it was when I was young. Inflation would erode it’s value by at least 30,000 a year. It makes you think! Maybe going to live somewhere cheaper and warmer might suit some people. 🙂
20, August 2013 at 8:40 am