What to do with 1 billion dong prize?

According to experts, the prize money is like a personal savings, so you need to prioritize essential spending plans, then invest.

I just won a promotion from a soft drink company, receiving 1 billion VND in cash. Up until now, I have only worked for a salary, with an income that is "enough to get by", so I have not thought about spending money or finding ways to "make money make money" like other people.

Now that I have received a large sum of money, I do not know how to divide and use it properly. For now, I do not need to spend much money on anything, I still want to do my current job. Please advise me.

Vu Phuong

Consultant:

Because the information you provided is not detailed enough, the advice will be general. Hope my advice will be helpful to you.

Currently, you have a job that is just enough to cover your family's living expenses, with no extra to save or reserve. Therefore, you should consider this 1 billion VND as the amount of money you have accumulated up to now. The use of this amount of money will depend largely on your future essential spending plan and your investment plan (in order of priority).

Future essential spending plans are essential needs of life that you have been cherishing for a long time but cannot do such as buying a house, repairing the place you live, education fund for children, improving health... The above plans aim to improve the quality of life, help your whole family have more health and spirit. This is the foundation to create more wealth and material things sustainably in the long term.

For the money used for essential spending plans, you should deposit it in the bank for a term that matches your money usage plan. For example, if you want to renovate your house in 7 months, you should deposit it for 6 months to get the best interest rate; for a short-term plan of about 1 month, you should deposit it for 1 month.

In addition, you should also invest in improving your own capacity in the industry you are working in to increase your income to have a monthly surplus. You can take courses to improve your working skills, expertise or management skills. This is the foundation for a long-term stable life.

After deducting the amount for the essential spending plan above, the remaining amount is the amount that will be used for the investment plan . To have an effective and suitable investment plan, it is necessary to have a lot of information about your financial situation and future wishes. Therefore, I propose 2 options that you can consider as follows.

The first is to use investment consulting services. You can pay a fee for consultants to plan suitable investments. The important thing is that experts will help you avoid pitfalls and scams in the market, limiting large losses of capital. In addition, they will also provide suitable investment options for you to choose from.

The second is to learn about investment knowledge yourself. You can use this money to take courses to improve your investment knowledge. After gaining knowledge, you will plan your investment to suit your risk appetite. Note that when you start to participate in the investment experience, you should learn carefully about the risks as well as participate with a small amount of money to minimize possible losses due to lack of experience and practical experience.

Phan Hoang Quan

Personal Financial Planning Expert
FIDT Investment Consulting and Asset Management Company

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