What Do You Do When You Get A Huge Sum Of Money?Money | March 1, 2010 at 12:05 am
If you are one of those lucky people who has inherited some wealth or has won some prize money in a game or so, and simply don’t know what to do with it, here are some tips that you might help you in putting your money to the best use possible. Firstly, don’t blunder with sudden decisions.
Most of us have a latent desire to purchase articles that appear to be simply out of-this-world! You might want to own the most expensive house or car in town since long and when you find that you are suddenly eligible financially for realizing your dreams, you take the hasty decision of buying the big item. This may not be a very wise thing to do because if you spend all your wealth on only buying the article, what will you spend on maintaining it? You’ll agree with me that before you buy something big, you should be able to maintain it too. If it’s a house, you should be able to bear its maintenance and repair expenses later on. The same applies to a posh vehicle. You can always go for a vehicle or a house that is less expensive and save up some money for its maintenance. That is better planning.
If there are impulsive spenders, there are the thrifty, which are happy to hoard money and not put it to any good use. They just pile up the money in their personal treasure chests or put them in a money market fund or CD which hardly gets them any good profits on that. Don’t do either of this. Of what use is money if it cannot be used. Moreover, if you simply heap over the entire amount of money gifted to you, you’ll be depressed because you haven’t really enjoyed your newly acquired wealth.
So what is the ideal way to treat your newly acquired wealth? Taking the moderate path is most often the best path to choose. Spend about 10 % -15 % of your wealth on your favorite item and save up the rest for future use or make profitable investments with that. You might invest in college education, professional establishment, retirement fund or any other investment for securing your future.
Wealth management consultants are always there to come up with some of the best solutions to manage your newly acquired assets. Apart from inheritance and prize money which is quite impractical for many of us, one of the most common ways of acquiring wealth is through divorce. Many people generally get a lot of money when they get divorced and they think, they’ve gained a fortune. But many times wealth managers have managed to show that such wealth may not actually give them the life of their dreams as they had been expecting to get. Wealth experts have an experienced and realistic outlook of finances and they know if a given quantity of wealth is going to make you rich or not. Its better to use your newly acquired wealth under expert guidance.