Let’s take a second to dream. Say your long lost aunt kicks the bucket next week and leaves you a million bucks. Will you be SMART about it, or one of those people who blows through it in a year and ends up broke again?
Here are the top five mistakes people make when they come into money . . .
- Mindless spending. It feels like you suddenly have an infinite amount of cash. So you spend like crazy until you realize it’s NOT infinite.
- Not getting help from a financial planner. If it’s a lot of money, you might need a TEAM to help you. People who come into money and try to invest it all themselves usually regret it.
- Making big decisions too quickly. Things like selling your house right away to buy a bigger one, or quitting your job too soon. Don’t make any rash decisions.
- Taking too LONG to make decisions. Some people just sit on their money because they’re scared they’ll lose it. That’s another reason to get help as soon as possible.
- Trying to be the hero and paying for EVERYONE. That includes relatives, friends, charities, and even your own kids. Make sure you’re in good shape first, THEN help if you can. And don’t set yourself up so you’re paying for a whole entourage.
Even if you’re GREAT with money, you’re still probably going to make a few financial mistakes in your life. And I’m not even talking about all those Beanie Babies and VHS tapes you bought. Their value will still rebound one day.
According to a new survey, the average person will waste about $9,700 in their lifetime because of financial mistakes . . . or incompetence.
Which means that every adult in this country combined will blow $2.3 TRILLION.
The top four ways we blow money are: Bank fees . . . credit card interest . . . paying higher interest rates than we should . . . and investment losses.
Every once in a while, you’ll see someone’s GoFundMe campaign pop up on Facebook. And maybe you toss them a few bucks, maybe you don’t . . . but either way, it’s not a choice you have to make that often.
Well . . . it looks like that’s about to change. Because now, people can set up campaigns to beg . . . err, ask . . . their friends for donations directly on Facebook. So if there’s a FLOOD of people asking for money, that’s why.
If you want to set one up, you can ask for donations in six different categories: Education . . . medical . . . pet medical . . . crisis relief . . . personal emergencies . . . and funeral and loss.
So why is Facebook adding this feature? Well, they SAY it’s to set up a safe way to get money in times of need . . . but they’re also taking a CUT.
They’ll get 6.9% of whatever you collect, which they say goes toward, quote, “payment processing fees, fundraiser vetting, security, and fraud protection.”
Pretend you just hit the lottery for a million bucks. Would that be enough to live the rest of your life basically stress-free?
According to a new survey in Australia, most people DON’T think winning nearly a million dollars would cover it. (We’ve converted the results to American dollars, so if they sound like arbitrary amounts, that’s why . . .)
Only 24% said an $800,000 jackpot would be enough to totally change their life. (In Australian dollars, that’s $1 million.)
17% said they’d need more like $6 million . . . and 30% would need about $8 million to live the rest of their life and not worry about money anymore.
33% said the best thing about winning a huge jackpot would be getting out of debt, and being financially secure.
22% said being able to help friends and family would be the best part.
14% said it would be having the freedom to do whatever they wanted.
This isn’t what most 19-year-olds would do in this situation. But hey, maybe your kids appreciate you more than you realize . . .
A 19-year-old kid in Michigan recently bought a $10 lottery ticket at a gas station near Lansing . . . and hit the jackpot for HALF-A-MILLION BUCKS.
And believe it or not, he DOESN’T want to blow it all on limos and jet skis.
Instead, he’s planning to invest about $5,000 of it . . . and says he’s giving the rest of the money to his PARENTS.
He wants to remain anonymous, so his name hasn’t been released. But he says the money will take a huge weight off their shoulders. And they deserve it for everything they’ve done for him growing up.
(Lansing State Journal)