We usually think of windfall money as a large sum of unexpected money, but you can create your own jackpot
Q: My best friend must be one of the luckiest people around. Even raising money for her games at the casino, she will always be able to win enough scratch tickets, 50/50 lotteries. It's only a matter of time before she wins the big lottery jackpot. I play with her because I can make a fortune, but I rarely win. I began to wonder if my $ 20 to $ 30 a week would be spent on other things so that I would make a difference in the long run? ~ Celeste
A: We all have a lucky friend – it seems that no matter where they go or what they do, they always manage to get ahead. Of course, we can win more opportunities by buying more lotteries, participating in more sweepstakes, or spending more money at the casino, but luck is illusory. Spending more money does not guarantee victory.
We usually treat unexpected income as an unexpectedly large sum of money, such as a lottery prize or a legacy. However, any unexpected amount can be an unexpected fortune. I don't know how many people will reject the extra $ 1,000 because it's not surprising. But why not rely on Mrs. Luck instead of creating unexpected gains yourself?
When you create your own jackpot, the money won't show up all at once, but it can still be considered a considerable amount. This is how to start creating your own golden pot.
Establishing a "secret" savings account
We are the biggest enemy of our funds. Who can blame us for spending hard-won cash? Therefore, to save storage space, we need to keep our own funds safe. One way is to open a "secret" bank account. This is a savings account from which we cannot debit or withdraw funds. It is not attached to our ATM card, and if we don't believe we stay, we can even ask our financial institution to encode it as "deposit only".
If you manage funds with a partner, set up this account to require two signatures whenever you want to withdraw any funds. This automatically prevents withdrawals from being made electronically and forces both of you to enter the branch together each time you want to withdraw money from it.
Until you think how crazy it would be to put aside each fixed amount of money, you won't spend money in a month, please consider how fast the balance in such an account will grow.
Determine how much you can set aside for your jackpot account from each check, and use autopay to make it simple. You can set it up via online banking. If you are unsure of your budget, start small. Even depositing $ 25 per week (that is, $ 50 for a bi-weekly salary check) will reach $ 1,300 at the end of the one-year period! Not convinced? Try for a few months and see for yourself. You really get nothing, you can do everything.
Tips to make saving easier
Guarantee your own money with your lotto
Up to a quarter of Canadians have lotto every week, and if the stakes are high, there are more Chance to join the game. But if you are saving rather than spending money, what will be the total cost of $ 20 a week in your working life?
This is your personal gold pot.
If you were to start at $ 0 and assume a weekly savings of $ 20 over 40 years, assuming an annual rate of return of 8%, your bucket of gold would be worth more than $ 280,000!
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If you want to save money strategically, you can leap forward. This may mean a lump-sum increase in the savings you receive, such as tax refunds, work bonuses, or gift money. You can also add $ 20 per week, an amount that is proportional to any salary increase you have received over the years. Different types of savings accounts can also make it easier to increase your savings beyond the minimum expected amount.
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In many processes, miscellaneous expenditures add up to pile up years. The remaining question is, why should you deposit money into someone else's account?
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Why it's worth creating your own jackpot
You may have heard stories of lottery winners wasting cash in the years of big wins, and even sports stars have been linked to multimillion dollar contracts that have declared bankruptcy. When creating your own jackpot, your chances of following in their footsteps are greatly reduced.
Their big winners get no more instructions than your salary check. Having a lot of cash does not guarantee that you will know how to manage it, and no one's habits will change overnight. If you can't manage $ 1,000, a $ 100,000 or even $ 1,000,000 gain may be bad. But saving your own jackpot will teach you the money skills to manage any kind of windfall.
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Another reason to save yourself windfalls is the rainy day fund when economic uncertainty comes. Without the temptation to set aside your extra savings and cheap credit, it can take years for you to recover your finances from a difficult period.
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Creating Your Own Lottery Bottom Line
Looking for needles in a haystack does not describe the odds of winning a $ 50 million Lotto Max bonus. Instead of pursuing luck and winning big money, create your own jackpot and beat the odds. But wait until you have money, don't wait to save-this is one of the biggest money mistakes you can make. From now on, you will have your own unexpected gains.
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Scott Hannah is the President of the Credit Counseling Society, a non-profit organization. For more information on managing your money or debt, contact email contact nomoredebts.org or call Scott at 1-888-527-8999.