I was watching True Life the other day, and it was about a young man (I think he was 26), who recently won the World Series of Poker around one year ago. I believe he said he won around $3 million after taxes.
Wow, that's a lot of money! Especially for someone so young. He seemed like a nice guy, and I found out in the show that poker was his job. He played many online gaming, and he seemed to makes tens of thousands of dollars each month just from online gaming.
Even though he won a really good amount of money (who wouldn't want $3 million?!), it didn't seem like he was the smartest. He went on a trip and somehow lost something like $40,000 from gambling on the trip. He would then worry the rest of the trip because he had lost so much money.
He was a lucky guy though, and always seemed to win his money back.
He seemed like a guy who really wanted to be careful with his money, but I don't think he was trying hard enough. I'm sure it's hard to win that much money.
One problem I noticed was that he bought a $500,000 house for his mother, even though he said his top budget was around $350,000. He brought it up to his mom that he didn't want to spend that much. Because he spent so much on his mother, he had to buy a less expensive house for himself (it was still an amazing one though, don't get me wrong!).
Here are my tips if you suddenly come across a good deal of money:
- If you're bad with money, have someone help you! – There are good financial people out there who can help you with your money. They can help you create a budget, learn how to invest and more.
- Have a budget. – Even though you just won a bunch of money, you should still have a budget. If you are spending more money than you have, then you are not off on a good start.
- Protect yourself. – Many people are going to seem to come out of nowhere since you just won a lot of money. Even though you will probably feel like you need to give everyone a share, you don't have to. Be careful with what you do. Money can bring out the worst in everyone.
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