Most people dream of the day they won’t need to take out a second mortgage on their home to pay for renovations, or just to make ends meet. And many of us spend a lot of time thinking about how we’re going to provide for our family and loved ones in the future. Some of us even spend a lot of time thinking about the luxury items that we want to buy for ourselves. But what if you didn’t have those questions hanging over your head? What if you were to become suddenly rich?
It’s a dream that quickly turns into a problem for many people. Not so much the fact that they suddenly have all this money, but that they don’t know what to do with it; or they don’t think about what they’re going to do with it before they start giving it away. Family members, close friends (and sometimes even, not-so-close friends) and charities might get the most of the windfall, with the giver of the money receiving nothing in return. Of course, it’s wonderful to be able to meet the needs of your loved ones, but giving money away often isn’t the answer to what to do with your new wealth.
Another one of the most common things people do with their new-found wealth is to immediately quit their job and any other commitments that they have, thinking that now is the time to stay at home, do nothing, and start taking on that slower lifestyle they thought would only come at retirement. This too though, becomes a problem. When people are on the go all the time, going to work and fulfilling an important role for the past decade or two (or three,) and suddenly stop, they lose their sense of purpose. Suddenly, no one cares if they get up in the morning, or what they do with their day. While this is “The Dream” for most people, it can also cause a great sense of uselessness in many, and suddenly, they’re left wondering what they’re supposed to do with the rest of their life.
So what are you supposed to do if you suddenly win the lottery or inherit a huge estate? The simple answer – nothing. When friends and family want money, or if there are people you just want to give some of your wealth to, think about it first. Are there certain conditions you could put on it, that would benefit the other person? Maybe they need to finish school first if they’re younger, or maybe they need to quit smoking or do something else to better themselves. Giving money to family is something all of us dream of being able to do, but thinking about how to do it wisely could benefit everyone, and could benefit the receiver in more ways than one.
And what are you supposed to do about no longer being in the workforce and are now trying to figure out what to do with your life? Again, do nothing. Spend some time mentally saying good-bye to that part of your life, realizing that it’s over, and thinking about how it’s your time now, and you can do whatever you want. That’s hard sometimes, especially for Canadians who aren’t all that partial to thinking about themselves first. But it’s so important, because it’s the only way you can actually be happy with all your wealth.
Aside from doing nothing except for taking some time to think about what you’re going to do with your new wealth, you should speak to a financial adviser about what to do with your money. Whether it’s a financial planner or a mortgage broker in Ottawa, you need to speak to someone about any investments you want to make now, or any additional properties you might want to buy, such as a vacation home or a cottage.
Taking a minute to think about what you’re going to do, or not do, with your new wealth is the most important thing you can do when you’re suddenly the recipient of a windfall. Because suddenly having a great deal of money should actually be a dream, and not a nightmare. ”
