What Would You Do if You Suddenly Got a Financial Windfall?
You have just won the lottery (Tragic Lottery Win-- More Tragedy Ahead?), a rich uncle passed and left you a small fortune, you discovered a piece of artwork at a yard sale . . . You are now Mr. or Mrs. Gotrocks-- what will you do with the money (What's a Million Dollars?)?
Will you start living like this is your recurring income? Or will you treat it like the one time financial boost that it really is? Blowing the dough would be the American Way . . . (Are You Un-American?)
Residents, and would be residents. of Spendthrift Manor (Spendthrift Manor and Frugal Homestead) would buy new clothes, cars, boats, and vacations (Have You Noticed the Giant Toy Sale Going on Lately? ). Basically, living "large" until the money was gone (Looking For Frugal Role Models . . . ).
On the other hand, here is what residents of Frugal Homestead would do:
- Be sure the taxes on the money were paid (No taxes on life insurance proceeds-- Buy Term Life Insurance and Invest the Difference?)
- Pay off outstanding debts to become debt free
- Invest the money prudently, hoping to further grow the money for the future (Wealth Building Posts Revisited)
- Finally, perhaps splurge on some small things (Reward Yourself! and More on Rewarding Yourself . . . )
What would you do? Blow it or grow it?
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