Phil for Humanity Phil for Humanity
A Guide for the Survival of Humankind and Helping the World, Society, and Yourself.

Suddenly Rich?

You know what really pisses me off?

It pisses me off each time I hear that someone received a windfall of money, such as winning the lottery or inheriting million of dollars, but is now broke. How can people be that stupid?

Luckily for these people, the government typically collects their taxes first before people receive anything. Otherwise, these people would spend all of their money, and then go to jail for being unable to pay their taxes.

How hard is it to immediately invest a few million dollars into safe and secure assets, such as bonds and treasury bills? That way, these luckily individuals would be guaranteed a decent source of income for the rest of their lives, therefore they would be able to permanently retire at any time if they wanted to.

I fully understand wanting to immediately pay off their mortgage on their home or buy a home. Also, I would also pay off any unpaid bills and credit card payments that I may have, but that should not account for most of the money. So why are people not smart enough to invest most of their new money instead of spending it all?

I always assumed people, even people who do not know how to manage even a little money, know that they need assistance with a lot of money. There are professional financial advisors who, for a small fee, guide people to financial security.

On the other hand, I fully understand the feeling of suddenly having money and wanting to splurge on yourself, such as buying an expensive new car or a large screen television. Just donít over spend, because money wonít grow back after it is spent. Therefore having a lot of money is just like having a little money, people need to plan for the future by saving and investing.

Furthermore, never loan or give money to family members or friends without being fully prepared and even expect to never see that money again.

Just remember that having money does not mean it all has to be spent.

by Phil for Humanity
on 10/06/2007

Related Articles
 » How Much Money Do You Need to Retire?
 » What is Rich?
 » No Long-Term Planning is Stupid