Note: Lumpsum payouts whether through pension, inheritance, any winnings or any other form are once off and should not be squandered but must be used accordingly and sparingly.
NB: First you must have a clear plan on how you are going to use the funds acquired to your benefit and ultimate progress.
Depending on the size or amount paid out to you, my suggestion is that you should divide the funds into to percentages, 60-70% (for investment/s) and 30-40% on yourself (on all the things you really need like clothes, food, entertainment etc.
Investment types can be 1. Property (buying a property to sell it later on or a rental property. Property remains one of the best and safest investment types to opt for.
If you are not the business type of person, instead of putting different amounts of money in your pockets (I Blew It), approach a bank, check the interest percentage on dividends and investment period (6 months) and invest the 60-70% lumpsum on a 6 months/30 days notice. The six months period is best because its a shorter period and offers you the highest interest on dividends than the other options.
2. Seek advice from professional bodies on what other business options you can explore. Make a careful assessment and do not jump headlong into quick investment decisions that you might regret later.
3. Avoid heresay and involving friends in your financial and business affairs just because you have money. This can lead to disastrous consequences as friends are there to take care of themselves and their own selfish interests and do not care at all about your livelihood and health. Please know this before you touch your money.
4. Take time, relax and be patient enough. Spend time thinking on your plans and weighing your options. This will allow you to take sound advice from reliable people and make wise investment options.
5. Do not forget that the lumpsum payout is a once off, once in a life opportunity. Think hard on your decisions on how you’d like spend the money. The best way to think or use your thought processes is when you are alone.
6. Lastly, learn from the experiences of others who received lumpsums and spent it poorly e.g. (I Blew It).
Good luck and May God grant you wisdom.
Compiler:
Cornelius SG Makuwe
Shopping Cart
Not a lot of people invest their time in reading such content hence we still have people who are complaining about not being financially empowered. I’m going advice my students to read this article.