15 Things to do if you suddenly become “Rich”:
#1 Don’t Let ANYONE Know
Shut your mouth ~ It’s none of anyone else’s business but your own
Continue to present yourself to the public as you did prior to receiving said financial wealth
#2 Pay all of your debt as soon as you can
And don’t create new debt
#3 Do not quit your job just yet
You still have to think about things like
Health Insurance
For yourself/family is more expensive when you’re no longer working for an employer
Tax Preparation
Most efficient banks to store your money etc.
Different financial institutions provide different benefits to those with a lot of money
Ask the financial institutions about their interest rates
Ask about fees for transferring money
Ask about withdraw limits & deposit limits
And until you have all of that figured out…keep working.
#4 Secure the money and let it sit for a while
Use the time to process this financial change
Develop a plan for your future
#5 Make investment in YOURSELF your priority
Learn to be financially literate
#6 Do not switch financial advisors
Meaning: if you’ve inherited the funds, the relative whom you’ve received the funds from has done their due diligence.
It’s best to remain with this financial advisor until you’ve had time to assess the F.A.’s goals for this wealth
#7 Get comfortable, but not “Rich” comfortable
Remember, less external visuals you let off to the public, the less you’re a target by others
#8 Do not invest in your friend’s business OR lend them any money
If you do, you might as well consider it gone
#9 Do not start a business immediately
9 out of 10 businesses fail in the 1st year
#10 Prepare for change ~
The more money you have, the bigger the target you have on your back ~
Consider a CRT (Charitable Remainder Trust),
So if you are a target…you own nothing for them to gain from targeting you
#11 Focus on getting healthier
Get a full medical check-up
Figure out how to get 100% healthier
#12 The 5% Rule
The money you have needs to generate an annual return.
#13 Protect your kids from the money
Trusts allot allowances
This allows you to better control your willingness “hand money” to your children in excess
If you want to give them money, develop a way to ‘make them earn it’, they will respect it’s value more
#14 Do not cheat on your partner
#15 Play it safe ~
Because, why risk it?
Don’t put your money into shady businesses or gamble it away.
BONUS: The law of averages dictates that an equilibrium should remain balanced.
“A fool and his money shall soon be parted”
Some of the sources for my notes: >Can be found here<