Notionet

When you receive a great deal of cash for the first time, your mind starts racing. This is too much cash! What should I do with it? Should I invest, Should I spend, should I save it or just donate it to charity.

Maybe you just won a lottery, received your first salary or just made good profit after a long time of struggle. The cash could be quite a lot, maybe several millions or even billions but what you are experiencing is just excitement. You have not held that amount of cash in a long time and your brain is finding it hard to comprehend.

The first thing you need to do is deal with this excitement. Try to do the following.

Deposit it.

If its cash, put it somewhere in a bank account and if possible let it be a fixed account. The point it to put it far away so you can have time to sober up and think clearly

Do budgeting

Now that the cash is somewhere safe, start thinking about things you don’t have. Take a pen, a notebook and a calculator and divide it into five sections.

a) Donation

It doesn’t have to be much, it can be 10% or 20% of what you get. It all depends on how much you are willing to give. Maybe you would like to offer it to your church, to help a friend in need or to donate it to a charity.

b) Expenses

Start with your debts,loans and subscriptions. Calculate them and set that figure aside. Then go to your most basic needs I.e food, clothing, housing and health. Start with shopping for this necessities. if its a lot of cash you can buy a new house and even plan to relocate to a better place where you can have a piece of land with a garden, lawn or a parking lot.

c) Savings

When you are done with necessities, its time to set aside a certain amount for a rainy day. It should align with your general livelihood and your plans for the future. If you plans point to a better livelihood in the future, the savings should be a little bit higher.

d) Investments

Maybe you have been thinking of starting a new business but have been struggling to raise capital. This is your chance to create that business. You can estimate the amount you need to start your business and also the one you need to maintain it. If you did not have any plans of starting a business, you can invest in easier areas like shares, bonds and such.

e) Luxuries

Its not bad to celebrate your success. It rarely comes twice in a lifetime. You can buy your dream car, visit your dream destinations and taste your favourites dishes. Its even better if you do it with someone you love or your closest and most loyal friends. Have moments you will live to remember.

After doing all the calculations, you will realise that the money was not that much. But its good you have it. Now you can go back to your usual life feeling blessed and thanking God with a smile on your face as you prepare for the better life ahead.

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