What to do When You’ve Hit the Jackpot
There’s Good News, Bad News—and Even Worse News
You’ve just made a windfall profit―one of your stocks has just turned into a 10- or 20- bagger.
Or perhaps you’ve won first prize in a multi-million dollar lottery. Or a rich uncle you didn’t even know you had just died and left you his fortune.
That’s the problem.
Come payday, you know how much you’re going to put in your wallet and you’ve got a pretty good idea of what you’re going to do with it.
Nothing to get really excited about.
An unexpected windfall―whether it’s $10,000 or $10 million―is a different story.
Suddenly, you feel like you’re swimming in enough money to make all your dreams come true.
But the first thing you need to know about banking a windfall is:
It May Never, Ever Happen to You Again
Maybe it will. But until that happens (if it ever does) you’d do better to treat this as the only chance you’ve got. The only chance you’ll ever get.
The only question is: will you make the most of it?
Or will you be like 3 out of 4 lottery winners who are bankrupt within 5 years.
About 65% of all people who win big money like you just have are poor in fifteen years or less.
Not just poor, but worse off than they were before they won the lottery.
How can that be possible!?
I know. This is the last thing you want to think about right now.
I’ll bet you’re figuring on heading down to the pub tonight and buying all your mates a round or ten of drinks.
Hey, you could even buy the pub itself. (Probably a better idea.)
Or stop by the jewellers to pick up that diamond necklace or the latest Louis Vuitton bag you’ve been coveting ever since it appeared in the store window.
And tomorrow, maybe you’ll book that Caribbean cruise, round-world ticket (first class, of course), or try your luck in Monte Carlo, not to mention that Porsche, Bentley, or seaside weekender you’ve always lusted after.
Stop right there!
Because you’ve just answered the question of how people like you with sudden wealth end up bankrupt. Like you, the very first thing they did is blow a nice chunk of it.
Then they blow some more.
The problem for people who spend money like there’s no tomorrow is:
There’s always a tomorrow
It all comes down to your Money Personality: are you a Spender, a Maker, or a Keeper?
Everybody knows how to spend money. None of us need lessons in how to do that.
Quite a few people make money.
But not everybody who knows how to make money knows how to keep it.
As the news of your windfall gets around, you’re going to be surrounded by sharks. Aside from relatives and friends you never knew you had who suddenly need your help, you’ll be hounded by financial advisers with spectacular schemes to double your money in no time at all.
When this happens, remember Will Rogers’ sage advice: “The best way to double your money is to fold it in half and put it back in your pocket.”
If you can’t resist such requests and offers, and keep a lid on your own desires for instant gratification, you’re a Spender.
I suggest that instead of heading down to the pub tonight, you go to the supermarket, buy a bottle of the most expensive champagne, and head for home. Then celebrate by thinking about how much better the rest of your life is going to be if you can:
- Keep it, and
- Make it grow.
“Die Rich” may seem like a crazy goal. Especially right now. But if you make that your aim, over the years to come you’ll end up having MUCH more than your windfall to spend (though not all at once).
Get Some Advice From the Millionaire Teacher
Andrew Hallam did. And his book, Millionaire Teacher: The Nine Rules of Wealth You Should Have Learned in School, he tells how he did it—and how you can too.
And if you’ve just become a millionaire, you’ve got a head start on Andrew Hallam. Except that he’s still a millionaire. Grab his book and you’ll learn how easy it really is to keep what you’ve just won.
While you’re in the bookstore, pick up a copy of Rich Dad, Poor Dad by Robert Kiyosaki. You’ll discover that the difference between the rich, the poor, and the middle class is not money in the bank. It’s their Money Personality.
Finally, add a copy of my own book, The Winning Investments Habits of Warren Buffett & George Soros.
Warren Buffett and George Soros are the world’s two richest investors. Learning how they started with nothing and became billionaires in the markets will make it easy for you to tell whether any of those financial hustlers have what it takes—and say “No!” to those spurious “get rich” schemes that come your way.
No question. Having a whole lot of money in your back pocket is an absolutely wonderful feeling. But that feeling will only last while you keep it in your pocket.
You’ve just received manna from Heaven, and I implore you to treat it with the reverence it deserves.