You may have heard the adage that money doesn’t buy you happiness. In reality, money can help make you pretty darn happy, but that’s not the point. The people who learned this lesson the hard way usually found that suddenly getting a bunch of money was actually pretty stressful. If you’ve recently run into a nice cash injection, then stay calm. Breathe slowly! Suddenly having a lot of money is akin to climbing to the very top of a very tall climbing frame. It’s really easy to do something stupid, and the fall is going to hurt if you do. There’s the famous story of Janite Lee, who won $18 million in a 1993 lottery. She blew it all on unsafe property, gambling and vanity purchases. She liked to blame the money for her subsequent misfortune when in fact it was her own behaviour. Money doesn’t control you! Make sure you grab it by the horns while you have it.
Improve your property situation
Property is only getting more and more expensive. It might be a good idea to get your foot on the property ladder while you have a chance. Having a place of your own definitely helps you feel more secure. Knowing you have somewhere for your retirement is a pretty big weight from your shoulders! If you’re a millennial, you may have read many articles about the difficulties you will face when trying to get a property any time soon. Many people suggest buying instead of renting. But perhaps you’re more comfortable renting. In which case, you can use your new funds to start renting a much nicer property.
The rich get richer. You’ve probably heard that saying before. What does it refer to? Generally, it refers to the ability for a large amount of capital to grow into something even more impressive. Spinning off from the previous suggestion, it may even be a good idea to invest in some luxury real estate. Maybe you don’t have the million-dollar capital that is sometimes needed. But you can use your capital to make a large down payment on a suitable mortgage.
Pay off your debts
Do you have any debts? Debts are nasty things. They’re nasty to have, but they’re also nasty to pay off. Or so you think. A lot of people who come into money ignore their huge debts. They don’t want to sink any of this luxurious wad of cash into debt settlement. But the truth is that it’s a wise decision that will help your finances going forward. Investments will be more difficult if you have bad credit, so make sure you’ve got you financial history looking clean.