What to do if you get pretty rich, pretty fast? 

  1. Don’ts - Part 1: COMPLETE
  2. Do’s
  3. Dealing with your Emotions
  4. Drafting in the Pros.


Last week we covered the key don'ts when it comes to being in a sudden money situation or getting pretty rich, pretty fast.

Hopefully the don'ts resonated, even if it sounded boring. Trust me, following this guidance is gonna fire you to financial freedom (mentally and physically) way quicker than anything else. The don’ts are actually the most important part of this 4-part series, cos if you don’t do the don’ts, you’ve made it much more difficult to do the do’s.

Without further a-”do”:  

Part 2: The Do's!

Do put the money somewhere safe

Well, definitely not under the mattress or buried in the garden. What if the place catches on fire?

So then where? 

You may know that the government, through the complicatedly named Financial Services Compensation Scheme (FSCS), protects up to £85,000 per person held with any one particular bank.  

In layman's terms, if you put £85,000 with Bank X, and Bank X goes bust (as Lehman Bros did in 2008), then the FSCS will return your £85,000. If you have £100,000 with said bank, then you’re losing £15,000 straight down the pan. Side note: yes, there is a “temporary high balances” cover for up to £1M, but this only lasts for 6 months.

You therefore need to be mindful of this if you receive a significant cash injection.  The next question usually is, “Well hang on a minute, I’ve got £2M here, I ain’t spreading that between 23.5 different banks in the UK, that’s a nightmare”. True, it is. That flies right in the face of our ever consistent, ‘Keep Your Financial Life Simple’ mantra.

What we suggest you do in this scenario, for the first 6-12 months of the ‘you’ll do nuttin’ stage, is stick it in an NS&I account. Their Direct Saver account, for example, allows up to £2M per person (use your spouse’s name if you need to double up). The return isn’t anything to write home about (currently 1%), but you’re not in it for return, at least not during the initial holding period.  

It's a simple one-stop shop to hold your money AND it is backed entirely by the UK government. With this and the temporary high balance cover, you can secure £5M per couple, for the initial 6 months at least. This doesn’t even take into account the Income Bonds (£1M limit) or the Investment Account (another cool £1M limit).   

And if the UK goes bust, then, well, we’re all in the sh*t anyway and I don't have answers for that. 

Do give some respect to Instant Gratification

The next thing we would suggest you do is to deal with a very natural human instinct called Instant Gratification. When faced with a big cash uplift, it will be so hard to stick to the don’ts mentioned in Part 1. So, we do allow for some instant gratification, as long as it is simple, relatively low cost and generally modest.  

Examples are, taking your whole family out for a nice meal, buying a watch, staying in a nice hotel for the weekend, anonymously buy a round for the whole pub, or pay for everyone’s petrol on the forecourt. Things you would like to do or would maybe already do anyway, but that aren’t going to compromise the serious principles we’ve already alluded to.

Do wait for Part 3 & 4 of this mini-series

Bit of a cop out, but the next Do’s are so important and tricky, we’ve dedicated two separate weeks to them. Not to give away the goods too early, but the only thing you MUST do is take serious notice of, and deal with, your emotions, which we will come to in detail next week.  

Stay tuned…


Alfie Mullan, April 2019

Want to hold a conversation that will quite literally change your life? Well drop me an email and we can get this new life on the road.