A million dollars is a lot of money if you’re not financially stable, it can change your life significantly for the better. Best part is that you won’t be worrying about how to survive for the next few years anymore.
You’ll have enough money to buy your dream car or a better house. You’ll be happier, or will you? It all depends on what you do after winning a million dollars.
It’s true that a million dollars is a lot of money, however, money can be lost very quickly without you realizing it.
Ask yourself this: Would you rather win a million dollars instantly or gradually over a few years period (2 ~ 3 years)
Winning a million dollars gradually might be the better answer and here’s why:
When you win a huge amount of money suddenly, there is a great chance that you might be overwhelmed with the sudden twist in your financial life. You’ll want to buy things that you could never buy, spend money going out with your friends and much more.
You might end up wasting a lot of money on useless things without you noticing it at all. Whenever you’re deciding whether or not you’ll buy something, you most probably will end up buying it because you believe you have a lot of money.
If you receive your million dollars gradually though, you won’t get rich instantly, but you’ll have a much higher chance of staying rich for the rest of your life after you’ve got all the money.
Less money per a period of time means that you’ll be forced to put more rational thought in deciding what to buy and how to use the money. You’ll practice conserving money and only using it in the right place at the right time.
So, back to the original question. You’ve just won a million dollars, what should you do next?
In our opinion, the best things to do is act as if the money will be taken back from you one year from now.
If you know that you’ll be asked to give the money back, your mind will switch from thinking about using the money for pleasure to thinking about using the money to make more money.
Keep a small amount of the money on the side without ever touching them, these will serve as a backup in-case your choices of spending the money weren’t great.
Use the rest of the money to start new businesses, invest in stocks, learn new things. You’ll need to be careful here too in order not to end up losing your money.
The best scenario is that you invest in yourself first. Learn new skills that will help you handle new businesses. The money that you have won combined with the proper knowledge that you have learned will raise your chances of success.
The number one rule is that you should buy things that will make you money. Buy assets not liabilities.
Once you are 100% sure that you’ve sustained yourself with a steady monthly income from the money that you won, go ahead and do whatever you wish to do with your extra money.
The final take away note from this article
If you act as if you have to return the money after exactly one year, there is a higher chance that you’ll end up having more money than the amount that you have initially won, however if you focus on spending on liabilities, you might end up broke again sooner that you would expect and regret won’t get your money back at that point.
What do you think? We’d love to hear your opinion in the comments section.