What Would You Do With Sudden Wealth?
Getting rich suddenly isn't new for a lot of people especially in countries where their currencies do not hold high value but it is also not like it doesn't happen in developed worlds. It was a rare event in the past but in recent times and with the advent of cryptocurrency, crypto airdrops, paying for tasks, gamble, casino, and lottery, people now get huge sums of capital at their feet unexpectedly. Some even get this money from a deceased that made them their next of kin, and so when this type of money comes to a person, what should they do first?
It is painful that a lot of people lose this money as quickly as they get it because they are not prepared for it and this has been proven with the statistics that shows that 70% of lottery winners become broke after 3 to 5 years of winning the lottery. This happens because this money was sudden, they have never had wealth or grew wealth, they do not know what to do with it, and are eager to spend it all. The difference between such money being a blessing or a curse is having a plan.
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The first mistake a lot of people make when they make this sudden money is telling the whole world. If you want to keep this money, the first rule is to keep the news to yourself. Shut your mouth!! Do not shout it at the face of your enemies, do not burn down bridges because you just got money. Privacy should be your main concern at this point, instead of sharing it to the world. You want the world to know, they will but not at the time of getting the money.
If you are in debt, the first leverage that sudden money gives you is the ability to pay off your debt as soon as possible, so Pay Off Your Debt. As soon as you can, pay off any debt you have accrued over time, and do not create an existing one because you want to live below your means this time. So many people will not remember that they have debts to pay, and then they will go ahead to do something else that is very stupid "Quitting their jobs.
Quitting your job is a wrong move that most people who get this type of money do immediately, and it is a wrong step. If you are going to quit your job, it shouldn't be immediately. If you are in a rush to quit your job, then know that you are on a ride for a quick bankruptcy. It is important to secure the money and let it seat for a while instead of immediately spending. You need time to process what to do with the money because it will either affect your entire life positively or affect your personal live negatively.
When you have the money, in all you do, invest in yourself. Before you invest in anything else, you need to be sure that you have invested in yourself properly. If you want to keep that money, then you need to be financially literate else you will be parted from your money soon, just as a fool is parted from his money.
This is the final piece of advice I will give in this post, and it is not to invest in a friend's business or lend them money. Soon, people would know you own money and they will want to have a share of it because they believe you did not work for it so you should give them a share of it but the only way they an get it from you is either to borrow from you or pitch you a business idea. Do not lend friends money, nor invest in their businesses.