8 Best Things To Do With Your Money If You Become Rich, According to George Kamel
Written by
Laura Beck
Edited by
Zuri Anderson
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A dream that many have is suddenly becoming very, very rich. And it does happen to some! Whether it’s the lottery, an inheritance or selling a business, the windfall is exciting but comes with its own set of issues.
Financial guru George Kamel recently shared some straightforward advice for anyone who comes into a large sum of money. Here are the best things to do with your money if you become rich.
Keep It Quiet
Kamel’s first piece of advice is surprisingly simple: Don’t tell anyone.
“If people know you suddenly have millions of dollars, they will come out of the woodwork to ask for money,” Kamel warned.
This can become overwhelming and even scary, so he thinks you should keep your windfall to yourself until you have a good plan.
Don’t Quit Your Job Yet
While quitting your job might be tempting after a financial windfall, Kamel advises against making hasty decisions.
“You don’t want to find yourself without an income if you end up getting way less money than you initially expected,” he explained. Many windfalls like lottery payouts are structured over time or face substantial tax deductions, potentially leaving you with less than anticipated.
Park Your Money in a High-Yield Savings Account
When you first receive a huge chunk of change, Kamel shares that one of your first steps is to put it into a high-yield savings account. This will give you time to figure out what to do next — and your money will still be earning money. It’s also a safe temporary home for your cash that prevents impulsive spending.
Set Aside Money for Taxes
One of the biggest mistakes new millionaires make is forgetting about taxes. Kamel wants the newly-rich person to talk to a tax professional immediately.
“Uncle Sam’s likely going to get a big cut of this, so don’t blow it all on Ferraris and Fendi bags,” he shared.
Setting aside money specifically for taxes can make tax season a lot more pleasant.
Pay Off All Debt
Kamel thinks your next step is to take care of your debt.
“Get rid of every loan, credit card balance and personal debt in your life,” he recommended.
With significant wealth, this should be relatively easy to accomplish and creates a clean financial slate moving forward. He also suggests avoiding debt entirely once you’ve paid everything off.
“Now that you have money, why do you need to borrow anyone else’s?” he said.
Invest Wisely
Instead of chasing trendy investments like cryptocurrency or individual stocks, Kamel believes you should focus on proven wealth-building strategies.
“Stay far away from things like single stocks and crypto and anything that sounds like a get-rich-quick scheme,” he warned. “The kind of investing that builds lasting wealth is boring, and it should be.”
His approach includes maxing out retirement accounts like 401(k)s and Roth IRAs before expanding to other investments like paid-off real estate or index funds in non-retirement accounts.
Set Up Estate Planning
If you become rich, you need to plan for the future. Kamel suggests making a solid plan for what happens to your money and possessions after you die.
For those with major money, he suggests looking into trusts. “A trust will help you protect your assets and ensure they’re used wisely by your heirs,” he explained.
Give Generously
According to Kamel, one of the most fabulous parts about getting a lot of money is being able to give some of it away to help others.
“Giving is the most fun you can have with money,” he stated, suggesting that people donate at least 10% of their income regardless of their financial situation. With millions to give back, you can be a real agent for positive change.
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Sources
- George Kamel (YouTube), “15 Things To Do If You Get Rich Quick.”
