It's rare for individuals to win or inherit large sums of money. Even when they do, many lottery winners lose everything. Others who beat the odds and gain thousands of dollars in extra income, however, find ways to make it last. In fact, there are specific ways new millionaires hold onto cash. Reddit users who stretch their inheritances share great money-saving tips. Many of them have even mastered the art of investing.
They Paid Off Debts And Put Half Of Their Salary Into Savings
From Redditor /u/GreenR0se:
Simple living plus investing in real estate and stocks. Inherited about $400,000 back in 2011. Paid off student loans, spent $17,000 on a reliable Honda Civic, bought a $100,000 two-bedroom condo, went on one really nice vacation then put the rest into stocks and retirement accounts.
I live in the modest Midwest and I'm a naturally frugal person, but I can't tell you how cheap it is to live when you don't have a mortgage and car payment. With those first two steps down I can put about half my salary into savings and I am well on my way towards financial freedom.
They Hid The Windfall From Their Parents
From Redditor /u/notmybrothersmother:
While at uni I befriended one of my lecturers. I had majorly abusive parents and he acted more like both a father and mother to me than they ever had. He also owned a lot of property. We became very close.
A terminal illness took him, and he left everything to me. Without going into details, I'm young and the assets left to me mean I'll never have to work in my life, and they're growing faster than my lifestyle can go through them. I may never have to work, but I do find plenty to do with my time.
What made me keep my cool was paranoia and distancing myself from my parents' abuse. I knew if they had even the slightest hint I had something that could benefit them, they'd be all over me non-stop, so I bought an average looking small house and pretended I rented it, went into further study, and sat on everything else. I strained at the bit to spend, but reigned it in with fear of my parents taking that security from me. They gave me none and suddenly I had it and it was more important than anything.
Years later I think my mother knows, but I purposely keep no contact with her for any reason. I still live in the house because I realized I like it, and my first-reaction dreams of a large ostentatious property weren't what I wanted or needed.
They Saved It As A Retirement Safety Net
From Redditor /u/Bluemanze:
Not as much as others in this thread (low seven figures.) I got it in my early 20s and I haven't touched it. I keep all of it in fairly high risk investments with the goal of getting significant growth by retirement in 40 years or so. As it is, I just live a normal middle class life with the comfort of having a hell of a safety net. Pretty boring I guess, but I value the sense of financial security more than actually buying stuff. Takes much of the stress out of life.
They Paid Off The House And Car Then Coasted On Interest
From Redditor /u/SexyR63VinylScratch:
I came across a pretty large sum (lower seven figures, it was around 1.5 million) from some bets and such made at a casino. What I did with it is as followed:
Paid off car and house. This total was around $300,000 and a quite simple first decision since these things needed to get done ASAP to save money in the long run.
Spend only like $10,000 on some personal stuff. A nice PC and lap top, good desk, some car modifications for my own leisure, ect.
Pushed the rest into a high-interest bank account where I could essentially work only a few hours a week and live with the interest it gains. Its an awesome thing to know I have a great nest egg Im sitting on, and just about 80% of my pay check goes right to the bank to gain interest. It's a beautiful thing, and its made my life quite leisurely so far. Although I kinda wish that more people would invest their earnings instead of blow it all in one go. Im still living a really nice life in a two bedroom house and just happen to work less. The money is safe and secure, and since I work less things like my stress and anxiety as well as depression have gone down. I gotta say, I love it. And Im happy that I've made it this far.