For the canny, a sudden windfall could be the first step on the road to creating real wealth.
Most of us have dreamt about coming into money but the chances are many of us wouldn’t make the smartest choices if we did.
History is littered with examples of bad financial decisions made in the wake of winning big, but there are a few things you can do that just might help turn your luck into real wealth.
- Hire a financial planner: Some people are good at making money independently and some aren’t. And let’s face it, if your wealth has come from an unexpected windfall, you’re probably in the latter category. So hire a financial planner to get your money working for you in the best way, be it tax, insurance or investments.
- Pay off your debts: You borrowed money for a car because you didn’t have your own money and you’ve been paying a lender for the privilege. Now you’re rich, get out of debt so you’re not shelling out interest payments unnecessarily.
- Work until your money makes more than you do: Rich people don’t get rich because they make their first million and stop there. If you’re lucky enough to come into money, don’t quit your day job just yet. The richest of the rich earn most of their lucre from investments and capital gains, so if you’re smart you’ll keep drawing a salary until your investments are delivering income you can live off.
- Donate: Charitable donations are tax deductible and the Australian Taxation Office allows for some hefty savings if you’re fortunate enough to be able to give big. Also, you’ll feel good about yourself.
- Be happy: Why not? You’re rich!
Once you have your finances in order and are ready to splash out a little, here are some ridiculously expensive everyday things you could buy: