Hey guys,
The reason I put 10 grand in the title of this post is most people can't handle big wins. Meaning, that most people couldn't handle 100 grand let alone one million dollars.
Lets say you won or were given 10 thousand dollars. What would you do with it?
Like I keep saying we all have our financial realities and along with that certain bills and debt obligations every month. If you do have a lot of bills and the money was going mainly to bills, pay them off.
If you have 2 or 3 thousand in credit card debt, pay that off too. Don't be stupid with the money. I would rather pay off my bills and be debt free than actually still having that 10 grand.
I don't have a lot of bills because that's the way I've worked the financial side of my life. So I don't have to worry about that crap.
Okay, lets say you have 5 grand you have to pay for rent,monthly expenses like groceries,car and home insurance---and credit card debt this month. Use 5 grand from that big win and pay off the debt.
Since you probably don't have a lot of extra dough to be had, take 500 dollars and just spend it on the wife and kids. Don't sock it away. Why? If you can't afford to sock money away then just spend it.
Sounds contrary to what this site is about, doesn't it? Hardly.
Just that some people don't make enough that they can save a lot. But, you have to be smart about where you spend your money. Pay off your bills, always.
If you're fortunate enough that if you won 10 grand and can sock it away just put it in cash, count yourself lucky. I'm not kidding. And with the new Tax free savings accounts big banks are offering these days, put it in those too. Don't put it in stupid ass mutual funds,stocks or investments you don't understand.
Me, I would take half that 10 grand and put it in cash, take 500 and spend it, and the other 4500 I would start separate bank accounts for each of the major bills i pay each month and use that money to pay off bills. You'll know how much you spend each month on certain bills. I started subaccounts for all my bills a long time ago. Ramit Sethi said to do that in his book; I Will Teach You To Be Rich.
I've got his site here too. He shows you basic ways to keep your money, and make money on the side. It's a great resource. Here's the link to it guys. www.iwillteachyoutoberich.com
See, where people go wrong is keeping the money they pay for bills in the same account as everything else. Bad move. If you start a separate account you'll know exactly where the money is going and won't be so pissed off at the end of the month when you wonder "Where did the money go"?
I say these things because most people need to pay bills monthly. I anything is left over, great. But spend wisely people.
Or if you're like me, and lets say you live in the USA. I live here in Canada.
But lets say that 10 grand is extra cash because you easily pay bills. What you can do is take five grand and put it in two separate CD's at 2,500 each and have one mature in 6 months, and the other one a year. Don't sock your money away for too long, It's not worth it with today's very low interest rates. Take another 2500 and put it in a tax free savings account---and the other 2,500? Just take 500 of it and give it to charity and feed a family for a month. Then take 1,000 and pay some extra bills. The last 1,000? Take 500 and take your family on a weekend vacation.
The other 500? I'm not sure. I'm so good with my money, that I'm finding it tough to figure that out.
What do you think I should do with it?
email at mdgrove@inbox.com
And remember to head over to: www.iwillteachyoutoberich.com
You'll learn so much from Ramit Sethi. His name is pronounced; "Rameat Saytee"
The reason I put 10 grand in the title of this post is most people can't handle big wins. Meaning, that most people couldn't handle 100 grand let alone one million dollars.
Lets say you won or were given 10 thousand dollars. What would you do with it?
Like I keep saying we all have our financial realities and along with that certain bills and debt obligations every month. If you do have a lot of bills and the money was going mainly to bills, pay them off.
If you have 2 or 3 thousand in credit card debt, pay that off too. Don't be stupid with the money. I would rather pay off my bills and be debt free than actually still having that 10 grand.
I don't have a lot of bills because that's the way I've worked the financial side of my life. So I don't have to worry about that crap.
Okay, lets say you have 5 grand you have to pay for rent,monthly expenses like groceries,car and home insurance---and credit card debt this month. Use 5 grand from that big win and pay off the debt.
Since you probably don't have a lot of extra dough to be had, take 500 dollars and just spend it on the wife and kids. Don't sock it away. Why? If you can't afford to sock money away then just spend it.
Sounds contrary to what this site is about, doesn't it? Hardly.
Just that some people don't make enough that they can save a lot. But, you have to be smart about where you spend your money. Pay off your bills, always.
If you're fortunate enough that if you won 10 grand and can sock it away just put it in cash, count yourself lucky. I'm not kidding. And with the new Tax free savings accounts big banks are offering these days, put it in those too. Don't put it in stupid ass mutual funds,stocks or investments you don't understand.
Me, I would take half that 10 grand and put it in cash, take 500 and spend it, and the other 4500 I would start separate bank accounts for each of the major bills i pay each month and use that money to pay off bills. You'll know how much you spend each month on certain bills. I started subaccounts for all my bills a long time ago. Ramit Sethi said to do that in his book; I Will Teach You To Be Rich.
I've got his site here too. He shows you basic ways to keep your money, and make money on the side. It's a great resource. Here's the link to it guys. www.iwillteachyoutoberich.com
See, where people go wrong is keeping the money they pay for bills in the same account as everything else. Bad move. If you start a separate account you'll know exactly where the money is going and won't be so pissed off at the end of the month when you wonder "Where did the money go"?
I say these things because most people need to pay bills monthly. I anything is left over, great. But spend wisely people.
Or if you're like me, and lets say you live in the USA. I live here in Canada.
But lets say that 10 grand is extra cash because you easily pay bills. What you can do is take five grand and put it in two separate CD's at 2,500 each and have one mature in 6 months, and the other one a year. Don't sock your money away for too long, It's not worth it with today's very low interest rates. Take another 2500 and put it in a tax free savings account---and the other 2,500? Just take 500 of it and give it to charity and feed a family for a month. Then take 1,000 and pay some extra bills. The last 1,000? Take 500 and take your family on a weekend vacation.
The other 500? I'm not sure. I'm so good with my money, that I'm finding it tough to figure that out.
What do you think I should do with it?
email at mdgrove@inbox.com
And remember to head over to: www.iwillteachyoutoberich.com
You'll learn so much from Ramit Sethi. His name is pronounced; "Rameat Saytee"
No comments:
Post a Comment