15 Things To Do If You Get Rich All of a Sudden

this is the sunday motivational video every Sunday we bring you a different type of video which should improve your life today we're looking at 15 things to do if you get rich all of a sudden welcome to a luxe calm the place where future billionaires come to get inspired hello Alexis this is going to be an interesting Sunday motivational video although incredibly rare it sometimes happens that people get a massive influx of capital the most common way is by inheriting a fortune from a deceased relative the others are different forms of gambling like winning the lottery or something similar but very few of these people are ready for the money and they'll lose it as quickly as they get it statistically speaking over 70% of lottery winners are back to being broke after three to five years this happens because they have no idea what to do with the money they've never had money they've never built wealth and they are eager to spend it all that's why having a plan is so important it could mean the difference between this money being a blessing or a curse if you're new here welcome be sure to subscribe and follow us on instagram at a lux so let's just take a look shall we at the 15 things you should do if you get rich all of a sudden number one do not let anyone know this is your number one priority immediately after finding out shut your mouth this instinct to share the good news with everyone you know to shout it at the rooftops to shove it in the faces of your enemies and burn those bridges with your newfound cash that's what broke people would do you're no longer broke so privacy is your main concern you'll tell them when the time is right number two pay all of your debt this is the first and only expense you should undertake it's actually a because that is what's eating away at your life as soon as you can after the money hits your account proceeded to pay off any debt you have accounted for so far and then stop you'll feel like money is no longer an issue and new debts can be repaid immediately that's not true pay off your existing debt and do not create any new debt number three do not quit your job yet quitting your job immediately after getting money is the first domino in a series of events that will lead you to personal bankruptcy in just a few years time we are not wired to be non-productive no matter how lazy you are you need something to do if you're not going to work you'll be out there chipping away at your good fortune although the satisfaction of telling your boss to F off would be enormous for some of you you'll realize that your feelings towards work have changed the balance of power has shifted because now you have the power to walk away if it comes to it that said keep your day job and go about your life in the same way you've done so far number 4 secure the money and let it sit for a while once the money reaches your bank account and you've paid for your immediate debt let it sit for a little while it's not the money it is you who needs to process this your entire life is affected by this financial change but you're still the same person with the urge of getting everything you've ever wanted but don't the best advice is to not touch the money for the first six months that might sound like a long time but it makes a massive difference into what impact the money will have on your life every day you'll think about what to do with that money and you'll see that in these six months plans will dramatically change that's why you should not be impulsive with your actions number five make investment in yourself a priority you need to learn before you spend if you want to keep the money you need to start learning you haven't built wealth because you don't know how to grow money and this needs to change you need to become a person who is financially literate who understands how money works before you start moving it around not doing this will make you reckless or allow people to take advantage of you a fool and his money are soon parted it's a very popular saying throughout the world because it's true and you don't want to be a fool you have the luxury of time now start investing in yourself the average person who will inherit or win this much money isn't a sophisticated investor do not try to be one instead we recommend you start with the basics if you're in this position right now the best book we can possibly recommend you is money Master the game by Tony Robbins this book will teach you everything you need to know about how a normal person can grow wealth throughout their life even without a big fortune to begin with it's one of those books that will be valuable for the next decade in fact we believe the book is so valuable if you go to a Lux calm slash free book and sign up you can get the audiobook version for free thanks to our friends at audible the second book recommendation for this would obviously be Rich Dad Poor Dad by Robert Kiyosaki you can find links to everything in the description number six do not switch financial advisors if you've inherited the money from a rich relative it's likely they had a financial advisor the proof of their services is in the amount of money you're inheriting they know what they're doing and your money is in the right hands familiarize yourself with the relationship your relative had and the services they provided good financial advisors usually work through referrals and only accept a limited number of select clients they're expensive because they know what they're doing a big mistake newfound wealth individuals make is that they move it to some else who'll dry them out in no time number seven get comfortable but not rich comfortable pay off your house but don't move to a rich people neighborhood this is the most common mistake athletes make they buy a really expensive home that comes with additional long-term costs like property tax maintenance and so on not only will you spend a bunch of money on it you've just added a layer of recurring debt to your life do not buy every person in the family a car cars are liabilities your money is wasting away in the driveway the goal is to fix your life not completely remodel it or switch it up for what you think your life should be like number eight do not invest in your friends business or lend them money at some point that cat will be out of the bag and the information will leak everyone knows you've got the money now money that you didn't earn yourself which means some people believe they are somehow entitled to some of it everyone will start asking you for money money you'll never see again if you give it away they all have new ventures new projects new ideas new problems that your money can fix or light up but this money is your safety net and putting holes in it no longer makes it safe that's why the money is also a curse your relationships are doomed if you give them money they're going to lose it and your relationship goes down the drain if you don't give them the money they'll resent you for it but at least in the later option your children can still afford to go to college number nine do not start a business immediately we've all had the dream of being the boss telling people what to do and looking at other businesses like I could easily do that myself the truth is 9 out of 10 businesses fail you've already exhausted your luck getting the money in the first place luck is not what's going to make your venture successful start small talk to your financial adviser and run all of your investment decisions by them it's easy to get caught up in the illusion of potential success when you're starting out the same way this illusion will fade away and so will the funds you sink into it number 10 prepare for change the more money you have the bigger the target on your back because now people have things to take away from you you are more likely to be sued people will try to scam you or use emotional leverage to get money out of you having money is a lot of work you'd think life gets easier with money but the truth is while some problems get solved other more complex problems rise up in their place and a lack sirs if you've suddenly got money or are on your journey to creating wealth there's a really valuable video which we made a while back called 15 things that change once you get rich you can find it by clicking in the top right corner it's a great list of what to expect and it will serve you incredibly well to be aware of these beforehand number eleven focus on getting healthier you've got money now it's time to enjoy it for as long as possible you cannot afford to be a victim of your own bad choices at this point begin with a full medical check-up and then start taking better care of yourself pay more attention to what you consume and find ways to improve your health number 12 the 5% rule the greatest thing to wrap your head around is the money you just received will not last forever that is unless you're familiar with the 5% rule to put it simply the money you have needs to be wisely invested so it generates an annual return if you only spend that return in theory your money should last forever you need to get as close to this as possible think of this large sum of money as a money tree as long as you take care of it it will bear fruit every year you can enjoy these fruits but don't go cutting the tree down as temporary firewood that is why we recommended money Master the game earlier as well as Rich Dad Poor Dad you need to understand money the 5% rule comes as a result of average investment returns if you're smart about it and have your money in an index fund like the SNP or similar once you adjust for inflation you should be left with a bit more than 5% returns per year assuming you've got your hands on five million dollars using the 5% rule that's a cool two hundred and fifty thousand dollars per year every year diversify that portfolio well and you're set the problem is once people see the millions they don't refrain themselves from spending within that 5% rule the best book to convince you to change your spending habits is called The Millionaire Next Door it's a phenomenal book we cannot recommend enough you'll learn more about how millionaires grow and keep their money then you'd learn in any business school if you're interested go to a luxe comm slash free book and sign up to get the audiobook version for free if you haven't read it or listen to it just yet the great folks at audible have made this deal possible for our community number thirteen protect your kids from the money not only will your life be turned upside down because of the money your kids lives will change as well this can be done with trusts where they get an allowance from the money without allowing the original investment to be touched that's how the rich are getting richer and how legacy wealth is created number fourteen do not cheat on your partner this should go without saying but once you've got money people will want to be around you for their own personal motives temptations will be big and mistakes will be expensive how expensive half of everything and child support expensive this money should strengthen the bond between the members of the family not drive them away unfortunately not everyone is mature enough to look at the effects their actions will have on their lives and fall into easy traps number 15 play it safe why risk it you find yourself in this incredibly fortunate position that you can provide a lasting benefit to you and your entire family if you just play it safe do not put your money into shady businesses do not try to push your luck and hope to double your investment quickly say thank you and play it safe really the best thing to do is to behave like this event never happened and somehow your debt and financial problems went away now live your life in accordance to this rule and you'll be well off the money will grow and you'll be taken care of if you just don't abuse it just to drive these points home here's a recap of everything you need to do if you receive an inheritance or win a large sum of money do not let anyone know about the money pay off your debt as soon as possible do not quit your day job immediately no matter how big the temptation may be instead let your money sit in your account while you get ready to make some moves you need to smart enough about this and do not change the financial advisor they'll help you plan and organize everything so you can start buying things for yourself and the family but within reason friends and family members will start asking for money but don't give it to them because it's a lose-lose situation don't rush into starting your own business unless you have previous business experience because your entire life is about to change you're now a target and need to rethink everything if you want to enjoy the money invest in your health and never spend more than the 5% rule allows so you don't run out of funds protect your kids by setting up a trust fund and use this opportunity to strengthen the relationship with your partner divorces are incredibly expensive and both parties will end up with almost nothing after the lawyers are done with you just play it safe and don't be stupid we've covered numerous cases of people who've had it all and blew it and we would want to mention you in a future video because of it now a lectures were curious do you know anyone who blew through a fortune and ended up poor share your story in the comments below so our community can learn from your experience and of course for watching with us all the way to the end you know it you get a bonus fact here it is number 16 the law of averages is at play whenever luck hits you this much be careful because that pendulum swings both ways the law of averages dictates that an equilibrium should be restored in the words of Thanos everything should be balanced remember this word balance because as long as you maintain it in your life you'll be fine if you're a true a laxer and have watched until the end please use the word balance in the comments just to keep this true a lexer community alive thank you for spending some time with us a Luxor's make sure to LIKE and subscribe so you never miss another video we also hand-picked these videos which we recommend you watch next thank you for being an a lexer and we'll see you back tomorrow

Channel: Alux.com

Views: 654,237

Rating: 4.9128251 out of 5

Keywords: Alux, Alux.com, Alux Youtube, alux sunday video, alux advice, money, rich, money management, rich quick, going broke, financial education, investment, plan, focus, discipline, rich people, poor people, motivation, billionaire, billionaire mindset, wealth, funds, inheritance, inherit a fortune, win millions, start investing, rules of money, wealth management, what do to with money, sunday motivational video

Id: TVJOyArnq3s

Length: 17min 4sec (1024 seconds)

Published: Sun Feb 03 2019