Be Careful What You Wish For

[MTR]

Ever Heard this saying?

Have been reassessing my goals recently and what I have been doing over the last 2 years and realised that I have created more stress than I really want in my everyday life. The good news is, now I know what to do to reduce my stress

Perhaps this little saying is more about the ?lack? of preparation to obtain your wish. Certainly in my case.

The person who wishes to win the lottery and actually does, may have no understanding of how to handle large sums of money and may find that they are far less happy with the money than without the money.

MTR

 

[TMNT]

i agree, but if you can blow $20m in a few years and then have to rely on centrelink to survive, you get absolutely no sympathy from me whatsoever

I wish I had a nice steak sandwich right now......ill probably choke on it

 

[EN710]

Ever Heard this saying?

Oh yes. Get bitten a couple of times - the last one is "I wish all fixes come all at ones and not trickling in". Guess what, got big repairs happening all at once this year.

That said I have many good ones too

Have been reassessing my goals recently and what I have been doing over the last 2 years and realised that I have created more stress than I really want in my everyday life. The good news is, now I know what to do to reduce my stress

Perhaps this little saying is more about the ?lack? of preparation to obtain your wish. Certainly in my case.

Do you mean that you achieve your goal but got no idea what to do with it?
My problem is the opposite, have several surprises in the year, stressed out as I can't meet certain milestones and was unwilling to actually adjust goal. I was told "I'd question the competence of someone who can't be flexible with their goal in time of need"

The person who wishes to win the lottery and actually does, may have no understanding of how to handle large sums of money and may find that they are far less happy with the money than without the money.

MTR

If I win lottery I am confident that I know what I want to do with it . At the very least it will sit in the bank until I know

 

[bob246810]

I don't understand how people can get millions and blow it away like that. I've never handled that much money before, but even basic common sense would suggest I should put most of it in a fairly safe place to draw an infinite income. Do people's brains suddenly stop working when presented with a large sum of money?

I was going to say someone should start a business offering to manage money for lottery winners, but anyone sensible enough to use such as service would probably be sensible enough to not blow it away!

 

[TMNT]

I don't understand how people can get millions and blow it away like that. I've never handled that much money before, but even basic common sense would suggest I should put most of it in a fairly safe place to draw an infinite income. Do people's brains suddenly stop working when presented with a large sum of money?

I was going to say someone should start a business offering to manage money for lottery winners, but anyone sensible enough to use such as service would probably be sensible enough to not blow it away!

financial education isnt a given, its a skill

to be honest, if I won $20m, putting it in a term deposit to earning interest would be a temporary thing to think about what to do with it.

after that , Ihave no idea, nor experience, im sure i wouldnt blow it all, but im not confident on what to do with it

 

[The Y-man]

Do people's brains suddenly stop working when presented with a large sum of money?

Actually, the "financial brain" was probably never working in the first place (I don't mean this in a insulting way - literally they don't know what to do with the money).

Theory has it that social pressure plays a huge part.

Let's say you (not "you" personally but the "average person"!) hit it big time.
You're on the news.
Everyone suddenly wants to be your friend.

You go out to a pub/restaurant with relos/friends etc - who do they look to to foot the tab?

You live in a small, modest, outer suburban home - people keep asking you why you haven't bought a mansion yet (as they have no idea that winning a million don't get you a decent mansion!!) and why you are driving a 5 year old Hyndai Getz.....

And then your clothes.....

Suddenly you're under enormous pressure to spend spend spend, and because the average person only knows about saving up to spend for something, the extra money is for spending.

I was going to say someone should start a business offering to manage money for lottery winners, but anyone sensible enough to use such as service would probably be sensible enough to not blow it away!

Yep - they're called Financial Planners - and as much as we bag some of them here on the forum, even a half competent one would be better for many lottery winners than going by the knowledge they have.

There is some logic behind the system of paying out winnings in installments.

The Y-man

 

[keithj]

I don't understand how people can get millions and blow it away like that.

98% of people think that money can only be used for spending... it's only a tiny minority that know that it can be used for other things as well... like make more money. That's what I tell my kids anyway.

 

[Ausprop]

It's always nice to console ourselves that the winners of $20m would only be miserable or blow it anyway, somehow I think the reality would be different

 

[Newbieatlife]

It's always nice to console ourselves that the winners of $20m would only be miserable or blow it anyway, somehow I think the reality would be different

yep, fact is people win lottery every week and you only ever hear the one or 2 anomalies that go on a massive bender and 'lose' it all

Besides, who are we to judge what makes people happy? Financial goals and smarts are what makes us happy collectively on an investment forum, but for many, they will work and spend until they die and be completely content. Walking into a lot of money all of a sudden through lottery or inheritance can just mean a lot of new and exciting experiences temporarily and then are happy to go back to their normal lives

 

[westminster]

Ever Heard this saying?

Have been reassessing my goals recently and what I have been doing over the last 2 years and realised that I have created more stress than I really want in my everyday life. The good news is, now I know what to do to reduce my stress

Perhaps this little saying is more about the ?lack? of preparation to obtain your wish. Certainly in my case.

The person who wishes to win the lottery and actually does, may have no understanding of how to handle large sums of money and may find that they are far less happy with the money than without the money.

MTR

Strangely enough I was thinking about you and this the other day when I heard you running around for pavers I was wondering if you were enjoying the ride or if it was stressing you out.

There are some personality types which absolutely shouldn't do developments, some can do it and manage the project in their own way to get it done to suit their personality, and others' who just thrive on the stress and meet it head on.

I think developing whilst working full time taught me a lot about preparation, forward planning, scheduling of my own time/effort and the value of that time.

 

[sanj]

agreed myf. also for me it's important to factor in pain in the ar&se factor. if something is going to be an absolute pain i either wont do it or will do it only if the rewards are significant

 

[MTR]

Good points WM

Developing is another skill set and there are components of it that I thrive on but not every aspect, one pet hate is sourcing finance.

For me personally its important have a balance, does this mean I give up investing/developing? absolutely not, I love it, however I see that the solution for me is not to take on too many projects because I don't want it to become a job, rather than something I enjoy because I have the time to focus and mix it with other activities etc.

We are all different, and you don't know what you don't know, now I do and I can change this moving forward. I can perhaps take on 2 projects per year rather than taking on 3 and see how this goes.

Sanj
Totally with you on that one, if I start doing things I don't enjoy due to stress etc. then its time to give it away.

MTR

 

[westminster]

Good points WM

We are all different, and you don't know what you don't know, now I do and I can change this moving forward. I can perhaps take on 2 projects per year rather than taking on 3 and see how this goes.

Sanj
Totally with you on that one, if I start doing things I don't enjoy due to stress etc. then its time to give it away.

MTR

I can totally understand this. 2 is plenty for someone who doesn't want a job and had an awesome work-life balance before getting into developing

I'm going to get my DAs then see how I'm going to stagger mine.

 

[random]

l know l handled it wrong but l gave up investing because it basically ran my life and frame of mind.
Don't let me put anyone off but it just wasn't for me personally. All the hassles and worries , financing's and dealing with all the crap you had to to do it , l gave up day trading for the same reasons.
You know , the people and things you deal with doing all that stuff , l guess they love what they do so they can eat drink and sleep all the numbers, bs , the people and millions of hassling phone calls, details and crap, juggling.
My ex basically just wanted things simple , just a house and a life , l watched my brother who was the same . No hassles , no bs , he just does his thing and lives life instead of all the bs involved in trying to make more money.

And again to stress , this is just me but l wasn't a happy Vegemite and neither was my family. The simpler people with one mortgage and time to live , seemed much much happier than us
And they became secure enough plenty as the years ticked over and they paid down the one simple mortgage while their one properties value went up and up anyway and they'd start having extra money.

So we sold up everything over the last few years , we only had 4places but , none the less . l found even just that stuff stressed me out , even when going well. And the getting it .
Now l'm just renting on the coast for awhile, unwinding from all the crap, clearing out the brain fk. l've still got just one double block l like playing around with and l might build it up in time. One of those is for my daughter, she's 13 now.

When l finish chilling out , might just buy a new house somewhere , live and enjoy as l am much happier now . l'd actually like my load even lighter still . Thinking of selling those blocks. Invest my daughters in something instead.

 

[MTR]

Randon

Not putting me off whatsoever I think your honesty is appreciated. You made the right decision, you have to be happy today, no point planning for the future if you are not enjoying the moment.

When I first started investing it was all about negative gearing property that's all I knew, this was I guess what everyone else did. However it also came at a cost, sacrificing today - the more properties, the more debt... started thinking is this success?? Seemed like those who had a simple life, little debt and live in the moment were the successful ones, as they were content with their lot.

That got me thinking I needed to change my investing strategy so I could improve cash flow, continue to invest without sacrificing my lifestyle. I am still tweaking this process as I mentioned just slowing down a little so I have a balance.

I think if investing is making one miserable then don't do it, find something you love and pursue this, that's just my 2 cent worth.

MTR

 

[random]

Thanks MTR and yours to.
Yeah l just found life was always seeming to be about tomorrow.
But it's exactly like you said , today should always be really important to. Can't get it back tomorrow can we

 

[jingo]

Hi MTR,

You've achieved amazing things with your developments and I've enjoyed reading of your success.

Perhaps you just need a little time out to recharge the batteries before resuming another project?

 

[pursefattener]

One thing I've often wondered about winning a lottery is how is it possible to keep it a secret . If I won 20 M and went about investing the lot in various asset classes is it really possible to keep it quiet ?

Obviously my accountant and the ato will know in due course . If your family and friends get wind of it then every time you see them they will have dollar signs in their eyes and you would never hear the end of it .

I haven't bought a ticket for many years so zero chance for me anyway ha ha ..

 

[Blacky]

agreed myf. also for me it's important to factor in pain in the ar&se factor. if something is going to be an absolute pain i either wont do it or will do it only if the rewards are significant

Ha, A mate of mine who runs a small consulting business always includes a line on quotes called "FA Tax". It is a % of the usual hourly fee up to about 15%.
It very rarely gets questioned as to what it is. It means "Fck Around Tax". Depending on the job, he might reduce the FAT to below the 15%.

A know two lotto winners.
1) was a guy I went to uni with. I wouldn't call him a friend, but would have a beer with him if I bumped into him. I heard about is win (a touch over $1mil) and considered calling him to say congratulations. I decided not to as I figured every man and his dog would be hitting him up. I bumped into him a while later and said congratulations, then mentioned why I didn't call. He thanked me for not calling me, as he was amazed at the number of "friends" who crawled out of the woodwork, suddenly wanting to re-kindle an old friendships (which was never there - eg primary school 'friends') and catch up for a beer ("must be your shout mate).
He spent the money repaying his parents mortgage, buying a house, and investing in a small farm lot. He also upgraded his car.

2) A guy I worked with retired on the Friday. He commented on the day that he was a bit 'short' on what he believed he needed to be comfortable in retirement, but didn't want to spend another 3-5years working building the extra comfort. He would 'figure something out'.
He walked to buy the paper on the Saturday and the lady behind the counter had a multi-group ticket she was selling. It was $40. He wouldn't usually buy one but she had 3-4left and if she couldn't sell them would be stuck with them. He won a touch over $900k.

As for the stress MTR - I would try and focus on what is actually causing the stress. You say "developing" but there are many aspects to it. Is it the finance, the finding the sites, or choosing the colours? See what you can outsource for minimal cost (ie, I cant choose colours - so Im all for paying an internal designer to do if for me).

Blacky

 

[MTR]

Hi MTR,

You've achieved amazing things with your developments and I've enjoyed reading of your success.

Perhaps you just need a little time out to recharge the batteries before resuming another project?

Thanks Jason
Port Douglas booked for Xmas holiday so that should be a nice change.