A wise man once said, “Take 1/10th of your income and preserve it for the future.” Most of our income is spent in paying our expenses, while the remaining portion is often spent on unnecessary stuff, desired by our wants and our inability to control our desires. Our self-control gets weaker if we are suddenly blessed with significant amount of wealth. Our desires prey on our weaknesses and within the blink of an eye we realize that our wealth has been diminished due to our over spending.
For this reason, we recommend that you follow the 30-30-40 rule. That is, use 30% to do all the things you always wanted to do. Save 30% for rainy days and put 40% in a place that will generate additional cash for you. However, the decision will depend on many factors including your monetary debts, current financial needs, risk appetite, responsibilities etc. Here are few of the recommendations for how you can use your prize money in the most optimal manner. Have a look!
1. Put your money in a Savings Account
If you are not ready to re-invest your money, it is best to put aside some of your income in a savings account. Your funds will earn some interest while residing in the bank till you figure out any other potential use for them.
2. Take another chance with prize bonds
Your interest in prize bonds might multiply if you end up hitting a jackpot. With the amount you receive, it is always recommended to use up some money in buying more prize bonds. The higher the number of prize bonds you own, the more chances you have of winning the big prize. The lucky draws work on probability & you can increase your prospect for winning it by either buying a higher number of bonds or investing in bonds of higher prices. What have you got to lose anyway?
3. Protect the value of your money
With the dollar’s exchange against the rupee rising and Yuan getting the nod as a foreign currency for transactions in Pakistan, investing in other currencies is a very safe option to protect the value of your money from deteriorating.
4. Unconventional Business Opportunities
With the world getting increasingly revolutionary, there are now many different investment opportunities that you can explore with the right amount. To name some interesting investment opportunities in Pakistan, you must definitely look into investing in ride-hailing services such as Careem and Uber or you can probably look into ICO (Initial Coin Offering) of cryptocurrencies. The opportunities in today’s world are endless!
Stay tuned for our upcoming E-book 2 regarding investing in Careem Vs. Uber.