First of all, any information we'll be giving below is general in nature and will not take into account your personal needs.. Now we've got that out of the way, let's have some fun!
Imagine that you win the lotto or inherit a lot of money, what do you do with the windfall?
Initially it's suggested that you do nothing. What you say, why is it being suggested that you do nothing?
- It will give you the opportunity to reflect on the financial & non-financial goals (read here for more insight on how) that are important in your life.
- You'll be able to honour & respect the person and people who you will be spending the money on. If it is inheritance you can get clear on how the person you inherited from would want it spent
- It will prevent you from making rash financial decisions. Instead of buying that brand new Ferrari or 200,000$ BMW you'll be able to reflect on if this is what you really want in your life
- You'll be able to adjust your mind to dealing with the amount of money you now have in your possession. Often you'll find that people who win a large amount of money are in a worse financial position a few years down the track. This is generally due to the person with the "windfall" not knowing what to do with it
Your financial life doesn't need to be all dull though if you are fortunate enough to have a financial windfall
Fun ways to spend your "windfall"
Okay let's stop being so serious & have some fun. We've written previously about what the point of having money & wealth if you're not able to enjoy it. Here are some "fun" ways you could spend your money
- Heading away on holiday - doesn't necessarily need to be an all expenses paid trip either, something to relax & reflect on life being good!
- Buying a newer car - while generally we're not a massive fan of buying depreciating assets, a "decent" 2 - 3 year old car is a nice luxury to have if you can afford with cold hard cash
- Buy some new clothes - who doesn't love have fresh & "pimpin" new threads? With the windfall buy yourself a few new clothes, no need to buy the whole shop though
- Take someone you enjoy spending time with out for a meal - Your shout at the restaurant of their choice. This could be your spouse, kids, best friend, mum, dad etc
- Get some professional "advice" - Professionals such as dentist, nutritionists. personal trainers can be expensive. Consider investing some time and money on yourself to make your future self better
As always before making any decisions about investing it's generally best to consult an individual however we won't go deeper in this "fun" post.
What would you do if you won or inherited 1 million dollars?
How much would you invest & or spend? What would change in your life?
We'd love for you to like, comment, share & let us know your thoughts on how we can help you
Remember to live your Money Glee!