Sudden Wealth: How to make money fast
Although there are a variety of ways to make money, having a sudden wealth event is the fastest and usually most stressful way to come into money. Whether you work from home and have passive income, or earn your money through a traditional job, you should be aware of the different ways to make money fast and what you should be thinking about when you do.
Some ways to Make Money Fast:
- Passive income from a product you are selling (perhaps you work from home) that takes off (the Shark Tank effect)
- Winning the lottery (Powerball, Mega Millions, etc.)
- Selling (exiting) your business (Acquisition, Merger, IPO, etc.)
- Receiving an inheritance (Life insurance proceeds, Trust distribution, etc.)
Things you should consider when making money fast (sudden wealth):
- The first thing you should do is to define your hopes, dream, and goals. What is the single most important thing you want your money to do for you? This is, in my professional opinion, the most important thing you can do. Once you have defined and crystallized your objectives, it will be easier to plan for making money fast.
- Know what your getting and why you are getting it. Take the time to get familiar with how much money you should expect and how you will receive it (lump sum, payments over time, etc.)
- As early as you can, assemble a team of professionals. Don't rush into this. Take the time to do your due diligence, schedule meetings with & interview professionals like a CFP® Professional, CPA/Tax professional, Estate planning attorney, and property & casualty insurance professional. Also find someone that can help guide you (mentor, trusted friend, etc.) that will be a sounding board for you without needing to be compensated. Putting together your Professional Dream Team is crucial to making sure you are able to manage your sudden wealth moving forward.
- Be wary of people asking for money, especially friends and family. You may want to consider not telling anyone how fast you are making money and if you have received sudden wealth. Money changes people, and the people around them.
- Don't rush into any large purchases. Sleep on things for a bit. Nothing wrong with going out to celebrate with loved ones, but keep any large purchases on the back burner until you have had time to put together sound strategies for managing your new found wealth.
What should you do now?
Nothing. Take a deep breath, gather your thoughts, and then start working through the list above. There is no rush, even if others are telling you there is.
Once you have have taken the time to write down what is important to you and what you want your money to do for you, look to start the conversation with a professional. We have found that engaging in a casual conversation early on, before you start to make money, tends to lead to the best planning once we have established trust and rapport, in other words, once we know we like each other!
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