Skip Nav
Lindt
7 Ways to Elevate a Last-Minute Valentine's Day Gift
Valentine's Day
50+ Free Valentine's Printable Cards That Aren't Corny
Oscars
A Breakdown of the Oscars Gift Bag Worth Over $200,000 — You Won't Believe What's Inside

How to Manage a Windfall

Man Who Lost $15 Million Gives Advice on What Not to Do With a Windfall


Investor James Altucher lost $15 million in 2000, a time in which he says he lost his family, his house, his health, and his "fake friends." In a recent editorial on TechCrunch, Altucher gives advice to the soon-to-be Facebook millionaires on what to do when they come into their riches. Here are some of his recommendations:

  • Don't change your lifestyle for one year.
  • Don't invest yet. Save your money in a savings account or under your mattress and give it some time to mull over.
  • If you want to invest, don't invest more than two percent.
  • Focus on your health.

I think his advice was all very sound, especially his recommendation on not changing your lifestyle for a year. Coming into a lot of money can turn a person into a less careful spender and you may end up spending more than you are financially able to. It's better to take the time to adjust to your situation, and spend your money wisely with a clear mind and objective.

Image Source: Thinkstock
Around The Web
Things That Are Not Worth the Money
Best Websites to Save You Money
Renter's Insurance Tips
Save Money For College

POPSUGAR, the #1 independent media and technology company for women. Where more than 75 million women go for original, inspirational content that feeds their passions and interests.

Join The Conversation
Latest Career & Money
X