7 Things to do when you come into sudden wealth

Wealth can visit anyone at anything. It comes suddenly and stay only when it is respected, it can develop wings and fly away like a bird if it is abused. Of ten times people who come into money become paralyzed by the amount of wealth that they engage in lifestyle habits that squander the money. There is an African saying that the first money a child makes he uses it to buy akara (beans cake).

But that shouldn’t be your testimony, now boys have become men and as such should be better at managing resources, here are 7 things you should do when you attract wealth.

1. Tell no one

This is the best thing you would do for yourself, keep your mouth shut and keep the good news to yourself at least not until you deploy it into productive ventures. We have seen people come into sudden wealth and by telling others have unknowingly made enemies, sometimes this has led to the wealth owner’s demise. Do not tell anyone including family members; keep it under wrap for your own sanity. In Africa there is so much lack that everyone is looking for money and the money they are looking for, is some one else’s money. This is one big reason why Ponzi schemes abound in the continent and why they target the nabals. Why it is wrong, many financially uneducated folks fall prey due to ignorance. This should not be you, now you know.

• Pay your debts

Paying your debts should be a top priority. A debt steals your peace; now you have money, pay down all your nagging debts. Settle all your debts and make a commitment not to take out any more debts. Debts can either be good or bad; it depends on how you spent the money borrowed though. Money spent on consumption is bad debt, however if it is taken out to be used in purchasing inputs for a productive venture, and the venture has the capacity to repay the debts, then it is good debt. A debt for materialistic consumerism is bad and should be avoided, but when ignorantly taken out, it should be repaid as a priority. The debtor is a slave to the lender. For your freedom; repay your obligations as soon as wealth visits you. Do not think twice do it.

• Go for a Medical Checkup

Health is wealth, how does it profit you when you have wealth and lack health, therefore one thing you can do when you come into sudden wealth is to go for a medical check up to ascertain your health status, and make adjustment where necessary. You should then continue to maintain a healthy lifestyle, clean up, eat right and consistently exercise. You need a healthy body to enjoy the wealth and to continue the good work. Health should never be neglected, if you don’t have a personal physician, this is a time to get one, any money you spend to maintain good health is money well spent. Read health blogs and follow health experts on YouTube to keep you motivated and informed. Your health is your responsibility, Jesus Christ is the healer. Your health is a strong belief in the divine healing power of infinite intelligence. Stay grounded, avoid negative thoughts, forgive your enemies, and love always.

• Put some cash away in a high yielding account.

The minimum you can stash away in a high yield account should be 60% of the total wealth you have acquired. This money should be put in a high yield account that offers above average returns. This amount should be used as a cooling off buffer until you have acquired enough financial education in the business you want to venture into. It is better to venture into what you love and have a passion in, however sometimes you may just have to follow the money; meaning you invest in ventures for the money. Sometimes you  may allow it cool off for a much longer time allowing it generate interest income  for you while you engage in business activities that require little startup funds mostly in businesses that leverage your expertise like becoming a consultant in your field of interest.

• Start a business or reinvest the other remaining in your existing business.

The 60% invested in a high yield account earlier discussed will begin generating you passive income, which is another source of income for you, the remaining 40% in your hands should be reinvested into your existing business or set aside to commence a business venture you are conversant with, it must be a business you are familiar with and you understand how it makes money. Initially you may go in alone to cut cost but have it at the back of your mind that you may need to hire other workers to help with the business operations. It is also at this stage that tithes and charity are made out of the balance at hand. You may reach out to those in need and assist them too. You may support causes you cherish and make it a habit to always give. This type of giving should not be one off but continuous.

• Take care of accommodation.

Many who come into sudden wealth forget shelter because they are busy spending the wealth on things that temporarily gratifies. The keep on postponing this need until all the cash is gone. It is important to sort out accommodation, whether it is to rent, buy or build. Depending on your circumstance, it may be wiser to rent and put the surplus into your business than to build and not have any speculative money to invest. Which is better, to have a big house and no cash or to rent a property and have excess cash on hand to invest?  That money can be deployed to work very hard for you and bring in more money either by a business venture or an investment. This is not a period for wild parties and sleeping in highbrow hotels. You should seek professional adviser where appropriate.

• Avoid lifestyle creeps

Don’t go out and buy the latest car, continue to operate as you did before your sudden wealth. Be frugal and silent about your accomplishments. Spend less than you earn, become the master of your emotions by learning and avoid things, places and circumstances that trigger your consumption.  The Parkinson law says when income increase; expenses also increase to match it. Your number one job is to counter this law by designing a wedge that reduces your expenses while you are working to increase your income. The wealthy are wealthy because they spend differently from the poor. The rich buy assets that cash flow, while the poor buy liabilities. Whatever eats on your income without a commensurate or higher return is a money creep and must be discounted systematically. Keep a journal of your expenses and know your monthly living cost, always live within your means.

Bottom line

Money is attracted to those who respect it, money can be easily bored and develop wings and fly away but this does not have to be you. The 7 strategies mentioned are easy to do and master. It does require a change in mindset. Tell yourself that if my friend or my brother has done it, so can i also do it. What you have to do is apply what they have done legitimately (strategies) and you will get the result that they have achieved.  Keep learning and keep believing.