If you were to become rich tomorrow, what would you do? If I were rich tomorrow what would I do? I would buy a new house. I would buy a jet. All the designer labels in the world would be in my wardrobe. I am going to travel round the world in my private jet. If I won a jackpot today, I would never have to worry about money again, right? Wrong. With good money management skills, you and your family could live well for many years. But have it at the back of your mind that from the moment your financial fortunes change for the better, there is high possibility that you would be descended upon by people from all angles, scrambling for a share of your money .And if by this time you have not cultivated a healthy money habit, you could easily become your own worst enemy by quickly wasting your own fortune. Here is what you should do if you come into sudden wealth. 1.Maintain a low profile. Because of the temptations that come with becoming rich overnight, keeping a low profile would be difficult. But the truth is, that is a wise move to make. The moment people know you are suddenly wealthy, youâ€™ll be hounded by requests for help from every corner. So, keeping your wealth on the down low is guaranteed to keep the hounds away. 2. Steer clear of sudden life changes.
The first six months after you hit it big are very crucial. Don’t take drastic decisions like quitting your job, buying a chateau in France, buying a luxury car or starting up a collection of Hermes Birkin handbags. Meanwhile, it is only natural for you to want to celebrate your sudden riches. So, set aside a certain amount for splurges. But do it in a way that won’t draw attention to you. 3. Settle all your debts. This is one of the best advices you will ever receive. There is no better investment than paying off your debts. Be it a credit card debt or a mortgage, the moment you settle a dollar of debt, that’s a dollar less off your shoulders. 4. Get a team of legal and financial advisers. Handpick your own lawyer, accountant and investment advisor and get them to work together as a team. Make sure to carefully vet each of them before discussing what you want. How to do that? Check broker records at financial regulatory agencies. For attorneys, ensure that there aren’t any complaints hanging around their necks with state disciplinary authorities. In case you don’t want lawyers in your community to know your business, seek out one in the nearest city. 5. Invest wisely. Put your money in a safe, short term investment. Don’t touch it for the first six months. Ask your team of advisors to build an investment portfolio split evenly between equities and fixed income. Remember, if the investment sounds too good to be true, don’t fall for it. If it’s hard for you to grasp, don’ t do it.
6. Protect your assets. You need to guard against losing your assets to creditors. These include anyone from angry spouses and exes to people who win a lawsuit against you. If people think you are swimming in wealth, they will look for every reason to sue. It is a wise move to ensure that you are not as easy a target. Erect different roadblocks that make it difficult or even impossible for creditors to get your money or property. There are a lot of asset protection strategies on the market. Study them. 7. Build a budget.Live within it. If you are not used to having loads of money, it may take some discipline not to go on a spending spree. Restrain yourself by learning how to only spend income and not principal. In the world today, it takes a lot of principal to get income. Once you begin to spend that principal, it will quickly disappear. Once a budget is built, create room for unforeseen emergencies. But by all means, live within your budget.