Did you know that the lottery will with hold 25% of your earnings for federal tax? After that, you?ll be paying up to 9% more in state taxes. Winning is still exciting, but don?t spend all the money right away — or you might realize too late that it?s a little less than you thought!
If you?ve won the lottery or gotten a settlement that you don?t need to pay off medical bills, then you might be looking for ways to spend your newfound cash. Typically, lottery payments are received as an annuity since lump sum payments require giving away even more money upfront. And this is almost always the setup for a trial settlement as well.
What you can do, though, is research your payout options. In many cases, you might end up saving more money overall by accessing a payout — especially if it allows you to pay off current debt. Pre settlement loan companies can even help you BEFORE the settlement starts paying out.
What can you do with your newfound money? Here are a few suggestions.
Invest in Education
Now is the time to go back to school, if expenses kept you back before. The average structured settlement payout is $324,000; on average, a public school will cost you about $10,000 a year if you?re a state resident. Using your winnings to fund school will help you avoid the student loans that are going to be following half your classmates around for quite a while.
Go on a Worldwide Adventure
There are more airlines flying than ever before, and this means that the cost of traveling has dropped considerably for worldwide flights. You can get from one continent to another for less than $500 if you spend wisely. You can stay in hostels, explore your surroundings, and meet new people without having to track how you spend every single dollar. You?ll get the experience of a lifetime and have stories to tell for a long time about the food you tried in China, or the beautiful girl you met at a bar in Germany. Why not contact pre settlement loan companies today?
Pay Off Your Debt
It may not be glamorous, but it can be a big relief. The average American has thousands of dollars worth of credit card debt. Stop letting your debt push you around and pay it off — then make an effort not to get in the same credit hole again. Sometimes it can help to always pay in cash; psychologists say that this makes people more aware of how often they are spending money and reinforces a ?saving? attitude rather than a spending one. It?s why so many companies encourage you to pay with card, in part — you?ll end up spending extra, more than covering the credit card fees they need to pay!
So, how does it sound? Will you be going to school, or contacting pre settlement loan companies? Let us know!
