Editor’s note: This article was first published in January 2016. “Tonight” refers to the Powerball draw of 13 January 2016, and calling it the largest prize in history was true at the time.
The definition of the newly rich covers people who didn’t build their fortune little by little but went from poor to rich in a short space of time. That includes not only lucky lottery winners or people who inherit a fortune, but also those new entrepreneurs who create an app or a piece of software and sell it for hundreds of millions or even billions.
In fact, Mark Cuban himself, even though his rise was more gradual, would fit this definition. In an interview with James Altucher, he described the exact moment he became a billionaire: he was sitting in front of his computer, completely naked, waiting for his net worth to reach a billion. When the share price went up and he saw he was a billionaire, he screamed and jumped around, and only then got dressed.
Tonight, someone could take home the biggest lottery prize in history: 1.4 billion dollars in the US Powerball lottery. Cuban took the opportunity to give some great advice to that possible winner, and to anyone who goes from poor to rich in a short space of time, since Cuban knows a fair bit about that.
See also: Ray Dalio: I went from poor to rich thanks to these 4 habits
-
The first thing you should do is hire a lawyer who specialises in taxes.
-
If you weren’t happy yesterday, you won’t be happy tomorrow. It’s money. It isn’t happiness.
-
If you were happy yesterday, you’ll be much happier tomorrow. It’s money. Life gets easier when you don’t have to worry about the bills.
-
Say NO to all your friends and relatives. They will ask you for money. Tell them no. If you’re close to them, you already know who needs help and what they need. Feel free to help some of them, but talk to your accountant before you do any of this. And remember: nobody needs a million dollars for anything. Nobody needs 100,000 dollars for anything. Anyone who asks you for money is not your friend.
-
You don’t become a smart investor when you win the lottery or receive an inheritance. Don’t make investments if you’ve never done it before and have no experience. You can put that money in the bank and live comfortably forever. You’ll sleep much better knowing you’re not going to lose your money.
-
Be nice to other people. Don’t let it go to your head. Everyone else is still the same. You’re still the same, just with more money.
Featured image: Gage Skidmore, CC BY-SA 2.0, via Flickr.
