An experiment was conducted where 2 middle class families were given 100,000K. 3 years later, nothing had changed! Both families were in the same financial, emotional state. Most factors in their way of life, happiness level, overall health, stress, debt, children’s behavior stayed the same.
The money had no impact on their lives. They might as well have given it away to charity.
So they question is if you are given $100,000 - would your life change? would it solve your current problems? What would you do with it?
An experiment was conducted where 2 middle class families were given 100,000K. 3 years later, nothing had changed! Both families were in the same financial, emotional state. Most factors in their way of life, happiness level, overall health, stress, debt, children's behavior stayed the same.
The money had no impact on their lives. They might as well have given it away to charity.
So they question is if you are given $100,000 - would your life change? would it solve your current problems? What would you do with it?
yeah .. mine will surely get sorted .... see the thing is people become overly excited when they suddently hit a jackpot and dont know how to utlize it to the best... i remember two of my friends who got lucky with huge sums of money , and the common factor between both was , they started off with partying and more partying and shopping and god knows what...
One should consider money as " rizk " ... and use it carefully , share with others but in charity and good deeds .. and not take it for granted .. for it comes hard but vanishes in a blink ...
sure it will have an impact, as others have said, u have to use it smartly.
have some fun but think longer term.
I would have said toss a buch of it in retirement investments or college funds but the way investments are going these days I dunno. Maybe do the prepaid college so thats one thing u dont have to worry about and even budget for.
I once saw this program on the lottery curse and how most people who had won the lottery ended up more miserable than before. Because most of them were on this "high" of having soooo much money that it got to their heads and they spent it like crazy without thinking. It became like a disease, an uncontrollable virus running through their bodies. And they landed themselves in more financial debt than before.
I don't know if $100,000 would change me as a person. But I would try my best to use that money wisely. I would save some for myself. Use some toward helping my siblings with their education and some toward helping relatives in need/charity.
a couple of issues that i have noticed in additon to what redvelvet posted
many needy friends and relatives show up
con artists get in and rob ppl blind
if someone is not used to having a certain amount of cash lying around they are really not used to making decisions.
a gentleman I know saved a lot of his money bought properties in pakistan and they were sitting there for years. I had advised him for years to sell the stuff and move it in more productive or safer assets. When he finally sold, my advise was, do not start giving handouts to ppl, move the money into a separate bank acct, and sit on it, and make no moves for a bit. noise will die down and then think with a clear mind.
he goes and right away buys highly leveraged properties in UAE ..rather tank buying one on cash...assuming some flipper gain will pay off the other, and now unable to make the payment on a property, he either lost one or both, close to $200K in a matter of 10 months maybe. He was going by the sincere advise of one of his relatives who happened to be the realtor who got the commission for sale in the first place.
So, if u ever get into any sum of money...dont announce it, dont make any moves, get some objective analysis, get a financial planner to help..whatever.
An experiment was conducted where 2 middle class families were given 100,000K. 3 years later, nothing had changed! Both families were in the same financial, emotional state. Most factors in their way of life, happiness level, overall health, stress, debt, children's behavior stayed the same.
The money had no impact on their lives. They might as well have given it away to charity.
So they question is if you are given $100,000 - would your life change? would it solve your current problems? What would you do with it?
first off, what sort of a study is this with just two test subjects? for this to be even considered legit, they would need atleast 30 households as test subjects, and another equal number for control.
secondly, who would finance a study where they give such amounts of money away to random households?
sounds fake.
i bet it is just one of those things people make up to justify their points of view. "money isnt happiness" blah blah.
first off, what sort of a study is this with just two test subjects? for this to be even considered legit, they would need atleast 30 households as test subjects, and another equal number for control..
^ and here is where i ask.. why would u do that? why do people go for the highest limit they can get.. rather than settle on something a lot less and appropriate for their lifestyle, which is present and in the shorter future..
people need to understand that when banks say you can borrow $570,000 + or watever.. it means you will not be doing anythign else but paying that damn loan off..
if u want a life, go for something close to the rent ur paying.. something you can afford and still manage a life..
if i were given 100k, i know where that'd go... straight to the mortgage.
