You`ve been dreaming about becoming rich. All your life you`ve had mediocre job and all of a sudden something incredible happens. Perhaps it`s a sold land property, perhaps it`s a lottery win. But now you are rich. Now the question stands - what to do with these money? And how not to lose it all.
My family and I had similar experience. A large sum of money came and then in 10 years it was all gone. My only solace was that at least we haven`t spend even larger sum (above 10 times that) which some of my relatives had and they blew it all. Some people are just not meant to operate with money. Or they just needed the money to build a new home. Whatever the reason might be, there are other ways in which you can build and yet not spend all your money at once.
1. Don`t dream bigger than your wallet. Let`s face it. Blowing all that money on the most expensive new Audi wasn`t the greatest idea, right? Even if you could have afforded it you`ll soon realize that having an expensive car has it`s bad side - you`ll have to pay far more for maintenance. And over time this proves to be a bad investment.
What to do when you already have the expensive car?
Sell it and buy a regular one instead. Downgrade to ease your life.
2. Invest in yourself. Invest money in your education. Even if you have a degree you can still invest more money to acquire a certificate on something you`ve always wanted. For me this is far more important than a car. Also, if you have kids invest money for their education.
3. Don`t use a debit card that is connected to your main bank account where most of your money are. Choose a type of deposit that doesn`t go with a debit card. Believe me the temptation will be overwhelming otherwise.
4. Keep busy and enjoy yourself. Instead of thinking how to spend money, think about how to raise more. You can even start a business of your own if you wish but first you have to know ALL the risks. You can even hire a consultant. There are countless people who had money and lost it all because of ill management.
5. Don`t ever blow your money on stupid, irrelevant stuff. Home renovation is one thing but that $ 5 000 Haute Cauture dress is a whole different story. Don`t waste money like that.
What to do if you already have one?
Sell it. Don`t assume that every brand which isn`t well known is of bad quality. I was pleasantly surprised to know that there are countless brands that have 98% pure cotton blend in them. Choose quality over price.
6. Don`t spend above what you make in a month. This is the golden rule. In order to stay rich you have to still work. If you decide to take a short vacation that`s ok. But only a short one and it really depends where. Bulgaria is a good cheap and yet not too bad a place to spend your vacation compared to the expensive Dubai.
7. Make a pie chart. Set aside 50% of the sum (for example) in savings, 25% of it for education and do what you like with the rest. But keep in mind that having liquid money these days is important - you never know when you`ll need them.
8. Insurance, insurance and again - insurance. Even though you are rich now, insurance is very important. Covering an operation, restoring your home after an earthquake, etc... There are countless dangers insurance can cover.
9. Hold back your desire to show off. Like I said in the previous article of mine - showing off can only attract gold diggers, jealousy and negative energy towards you.
10. Have a monthly limit of spending. The fact that you are rich now, doesn`t mean you`ll be rich forever. At least it will be so if you don`t listen to good advice.
11. Don`t forget to be yourself. Many people who have acquired money change for the worst. But there are also people whose good qualities get amplified now that they can afford to do their best. Don`t be a snob. Dress fancy only if you feel like it. No one will judge you otherwise. Even if they judge you it`s their problem, not yours.
12. Spend more time with the people who you care about. Now you have the money and the time.
13. Donate to a good cause. Be a conscientious citizen.
14. Don`t give loans. Even to relatives. There are banks for that. You will lower your interest rate.
What we did?
1. I chose to get an education instead of a car.
2. We did renovations in our house.
3. My dad continued working on his good paying job because soon after a retirement awaited him.
4. We managed to get some of our land property affairs straight with the bad neighbours.
But we also didn`t have a financial plan. We spent above our means. We didn`t have a monthly limit. We hadn`t insurance until recently. We used to blow our money on stupid stuff. My mother fell ill and stopped working. We landed money to my mother`s sister. A big mistake. Now she makes fun of us behind our backs how poor we are. Keep your mouth shut about your financial status. We attracted a lot of negative energy instead of enjoying the time we had more money. Don`t make the same mistake. I never took advantage of the good parts. We`ve never been to a beach during summer in all those years. Partly because of my mother being sick. I was not changing my wardrobe often. I almost looked like a hobo (shame but it`s true). That`s not how a wealthy person should live. During that period I got involved with bad people. Bad, ill vibes attract bad people. I`ve never expanded my horizons above education and there is so far more - vacations, shopping, having fun with close people. I guess as previously poor people we didn`t have the right mind-set and we weren`t prepared. Your mind-set is everything.
My family and I had similar experience. A large sum of money came and then in 10 years it was all gone. My only solace was that at least we haven`t spend even larger sum (above 10 times that) which some of my relatives had and they blew it all. Some people are just not meant to operate with money. Or they just needed the money to build a new home. Whatever the reason might be, there are other ways in which you can build and yet not spend all your money at once.
1. Don`t dream bigger than your wallet. Let`s face it. Blowing all that money on the most expensive new Audi wasn`t the greatest idea, right? Even if you could have afforded it you`ll soon realize that having an expensive car has it`s bad side - you`ll have to pay far more for maintenance. And over time this proves to be a bad investment.
What to do when you already have the expensive car?
Sell it and buy a regular one instead. Downgrade to ease your life.
2. Invest in yourself. Invest money in your education. Even if you have a degree you can still invest more money to acquire a certificate on something you`ve always wanted. For me this is far more important than a car. Also, if you have kids invest money for their education.
3. Don`t use a debit card that is connected to your main bank account where most of your money are. Choose a type of deposit that doesn`t go with a debit card. Believe me the temptation will be overwhelming otherwise.
4. Keep busy and enjoy yourself. Instead of thinking how to spend money, think about how to raise more. You can even start a business of your own if you wish but first you have to know ALL the risks. You can even hire a consultant. There are countless people who had money and lost it all because of ill management.
5. Don`t ever blow your money on stupid, irrelevant stuff. Home renovation is one thing but that $ 5 000 Haute Cauture dress is a whole different story. Don`t waste money like that.
What to do if you already have one?
Sell it. Don`t assume that every brand which isn`t well known is of bad quality. I was pleasantly surprised to know that there are countless brands that have 98% pure cotton blend in them. Choose quality over price.
6. Don`t spend above what you make in a month. This is the golden rule. In order to stay rich you have to still work. If you decide to take a short vacation that`s ok. But only a short one and it really depends where. Bulgaria is a good cheap and yet not too bad a place to spend your vacation compared to the expensive Dubai.
7. Make a pie chart. Set aside 50% of the sum (for example) in savings, 25% of it for education and do what you like with the rest. But keep in mind that having liquid money these days is important - you never know when you`ll need them.
8. Insurance, insurance and again - insurance. Even though you are rich now, insurance is very important. Covering an operation, restoring your home after an earthquake, etc... There are countless dangers insurance can cover.
9. Hold back your desire to show off. Like I said in the previous article of mine - showing off can only attract gold diggers, jealousy and negative energy towards you.
10. Have a monthly limit of spending. The fact that you are rich now, doesn`t mean you`ll be rich forever. At least it will be so if you don`t listen to good advice.
11. Don`t forget to be yourself. Many people who have acquired money change for the worst. But there are also people whose good qualities get amplified now that they can afford to do their best. Don`t be a snob. Dress fancy only if you feel like it. No one will judge you otherwise. Even if they judge you it`s their problem, not yours.
12. Spend more time with the people who you care about. Now you have the money and the time.
13. Donate to a good cause. Be a conscientious citizen.
14. Don`t give loans. Even to relatives. There are banks for that. You will lower your interest rate.
What we did?
1. I chose to get an education instead of a car.
2. We did renovations in our house.
3. My dad continued working on his good paying job because soon after a retirement awaited him.
4. We managed to get some of our land property affairs straight with the bad neighbours.
But we also didn`t have a financial plan. We spent above our means. We didn`t have a monthly limit. We hadn`t insurance until recently. We used to blow our money on stupid stuff. My mother fell ill and stopped working. We landed money to my mother`s sister. A big mistake. Now she makes fun of us behind our backs how poor we are. Keep your mouth shut about your financial status. We attracted a lot of negative energy instead of enjoying the time we had more money. Don`t make the same mistake. I never took advantage of the good parts. We`ve never been to a beach during summer in all those years. Partly because of my mother being sick. I was not changing my wardrobe often. I almost looked like a hobo (shame but it`s true). That`s not how a wealthy person should live. During that period I got involved with bad people. Bad, ill vibes attract bad people. I`ve never expanded my horizons above education and there is so far more - vacations, shopping, having fun with close people. I guess as previously poor people we didn`t have the right mind-set and we weren`t prepared. Your mind-set is everything.
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