I made $300K+ in the first 18 months - what should I do with the money?

38 replies
I am no IM pro and had no business experience prior to last year. But I had a near death experience that made me realize that life is short, and sadly I can't take money to the grave, so I decided in 2010 to "productize myself", and turn everything I know into free and paid products that people can use.

Long story short, the business made $60K in the first six months, and $250K+ in the following year (that's profit, not revenue)

I bought a decent car, hired my first business partner, and I am excited about growing the business. I've also lived in rental apartments for the past 10 years, so I'll be looking for a small home to buy (hopefully this market already hit rock bottom).

But beyond that, I'd love to hear some ideas. What would you do for yourself and for your business with $300K in the bank?

P.S. I am not selling anything here, and don't have time to create a WSO. Sorry.

P.P.S: I don't spend too much time on programs/eBooks/... Sorry in advance for not buying what you'll try to sell me in a pm

P.P.P.S: If you have a master mind group of people with similar results, I am open to joining and sharing/learning.

P.P.P.S: There is really no secret to that success - I just worked on creating quality content (I have 2 blogs, I post once every 1-2 weeks, and I share it with people who would be interesting in it. I wasn't interested in making lots of money as I was interested in creating something that would survive my own short life here.
#$300k #made #money #months #success
  • Profile picture of the author caseycase
    Throw a huge party and invite us all. LOL

    But in all seriousness, diversify. Buy some land, property, silver or gold, etc.
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  • Profile picture of the author talfighel
    The one thing I would do and recommend that you do with your money is to give back to charities. The bible says 10%.
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  • Profile picture of the author sbucciarel
    Banned
    I'd leave it in the bank until I knew what I needed it for.
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    • Profile picture of the author bretski
      10% to Chernobyl survivors, typhoon relief, make a wish foundation or start your own charity based upon something near and dear to your heart... any way that you can make a difference in this world would be a good use. Maybe to benefit abused or neglected children?
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  • Profile picture of the author Daniel Evans
    I'm with Bretski. There are many charities that could do with your help!

    All the best!
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  • Profile picture of the author Ben Gordon
    Don't spend the money yet if you don't know what to spend it for. Here's my suggestion that might work for you depending on your business model. If you have a business model that revolves around creating and selling products, I would suggest hiring another employee to help you do that and maximize your profits, in hopes of some day becoming a large company. I did this and it progressed my company drastically. For now though, don't spend the money on stupid things. Yes, a house and a car are things that you need, but don't go out buying 'fancy' clothes that cost four figures or other apparel that you don't need. Rather, take a vacation and relax somewhere and get back to business. That's my advice.
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  • Profile picture of the author money fan
    Banned
    Well I would use some of it for entertainment. Take a vacation etc. And take what your doing right now and expand it. Also donating to charity.
    -gold is up right now
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    • Profile picture of the author ronr
      Congratuats on your success. Take advantage of it. Things can change.

      Pay off any debt and save your money until you have at least 3-6 months income, and pay for everything cash. Put a sizable downpayment on a house and pay it off quickly and continue to save and invest your money.

      That is real peace of mind, frreedom and security.
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    • Profile picture of the author Global Warrior
      The first thing you NEED to do is find out how much of that 300K you keep if the bank goes Tits up. It's very real. Don't sit back and say GW is on the hooch again. If necessary put $10,000 in 30 banks.

      The second thing you should do is pay off any debts or loans. Your credit history in these times is critically important. Appreciate that cash is king. Everyone is talking a big game right now. Any valuation you get about anything will, for the most part, be based on the commission the person giving you the valuation, is based on. Take the valuation, reduce by 20% and offer cash and a quick closing if you are buying. If they reject your offer, tell them next week the offer is less. DON'T hated doing it....... It's life.

      Thirdly, if anything else.......DON'T buy shares in Google.

      Finally, invest a small chunk in yourself....... I mean in EDUCATION. Money spent in education is BORING. Yes I know. BUT, consider this...... You can spend $50,000 learning how to fly and in your career, earn $3.0 Million.." yes the usual caveats apply....... OR you can spend $2,000 on push button software before you realize it doesn't work.... And earn...... NOTHING!

      Learn to think like rich people. They don't by a $40 Milion Jet unless they are worth at least 10 times that. I know, I've sold them. So dont buy a luxury item for yourself unless its a drop in the ocean. If you are ever in any doubt what to spend your money on, Learning is better than Losing!!

      Happy 2012

      Peace

      GW
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    • Profile picture of the author ezmystic
      I would put money into gold and silver options, but learn how to do it first don't just jump in and hope, and the REIT American Capital Agency. I am in a community where we learn all these things and it is great. It is fairly pricey to join, but not for someone with 300k in the bank, by the way never leave too much money in the bank for too long, the hidden 'tax' of inflation will eat it up over time and you won't even know it. I am not an affiliate by the way as they don't have an affiliate programme at present.

      Then live life to the fullest, give to charity and have fun.
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  • Profile picture of the author princecapri
    Donate money
    Enjoy Life
    Diversity your assets (Gold, Properties etc)
    Travel (see: Enjoy life)
    Help someone who you think has potential.

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  • Profile picture of the author RedShifted
    Are you kidding me? You actually made all that money and don't know what to do with it?

    This can't be a common problem by any measure of the word common.

    How about this for ideas. INVEST that money in real estate and silver. 2 known ways of turning it into MORE money.

    It seems like you almost accidentally made the money cause I'd know in less than a second what I need to do with that much money. I'd start by investing in a nice vacation and as soon as I got back I'd be searching for real estate gems in my area, of which there are lots.

    Something does seem fishy about this thread though I could never picture myself with that much money actually asking people around me what to do with it (I assume 90% of americans would take it right to the casino and blow it or spend 300,000 on lottery tickets in 1 night - glad to see you have so much faith in people). How about make a donation to the make a warrior foundation? Really.
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    • Profile picture of the author Venturetothetop
      Wait...

      You earned $310k over 18 months.

      You must have paid taxed.... i hope...

      You brought a car and HIRED a business partner (by the way, who hires business partners?)

      and you still have 300k in the bank?

      You need to come work for me, because after taking in all my living monthly living expenses and leisure activities less then half of that would remain at best, because the tax man takes a hefty chunk before i get to it.
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  • Profile picture of the author mywebwork
    As with many here I suggest donating to a worthy charity.

    As for which one, it is really up to you. If you went through a near-death experience perhaps there is someone, or some group, to whom you owe your life - the hospital or emergency responders who saved you perhaps?

    Or maybe there is a cause that is dear to your heart - research towards finding a cure for a disease that affects someone close to you, an animal shelter or a group that assists the less fortunate.

    Doctors Without Borders is always a good cause which my family regularly supports. I also have a mentally challenged sibling and would contribute to the organization that cares for him in a heartbeat.

    Save enough for yourself of course, but the feeling you'll get by contributing to the well-being of others is priceless.

    And as you said, you can't take it with you.

    Bill
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  • Profile picture of the author shahidusman
    I will say Diversify, make multiple income streams and multiply your money.
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  • Profile picture of the author RedShifted
    /\ Very solid advice right above (global warrior) and in this entire thread in general. The most important thing I can say is an increase in financial wealth should not always = an increase in living standards.
    In fact I've been out of college for 5 years now and am still living precisely how I lived in college. I have money now but still don't spend it. I save every penny I can. No boats or yachts, no yearly vacation plans, hate going to doctors, hate buying new cars, new clothes, new anything really.

    Last thing I bought for myself I think was 2 years ago I am just a really frugal person. I even do my own oil changes lol. When I see people in front of me on line spending their whole paycheck every friday on lotto tickets I just think "wow what a bunch of idiots".

    Like people said invest in things that will make you more money and if you have any form of debt PAY IT OFF. Thank god I had parents with such good credit who taught me right I have so many friends now who are STILL in debt and its such a horrible thing to hear some of their stories.
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    • Profile picture of the author Thomas Wilkinson
      Originally Posted by RedShifted View Post

      In fact I've been out of college for 5 years now and am still living precisely how I lived in college.
      If I still lived like I lived in college I'd have been dead forty years ago.
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      When you hear someone telling you what YOU can't do, they are usually talking about what THEY can't do.
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      • Profile picture of the author Nadim Hussain
        Congratulations on your success. If I had a $300k lump sump I would buy a minimum $100k worth of gold and silver. Silver offers huge upside potential and gold simply is money. Definitely give some to charity and look at how you can use the rest to best prepare yourself and your family for what could be a turbulent year in the global economy. Best of luck.
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        • Profile picture of the author Kay King
          If you are smart enough to earn it - you are smart enough to spend it wisely. I've never seen the point of working hard to earn money - only to look for ways to spend it. There's nothing wrong with keeping money you earn.

          Enjoy knowing the bills are paid and you can take care of your needs and some of your wants. I'd suggest a percentage of earnings put into a Roth IRA or similar - start piling up money for when you don't want to work. That gives you options for the future and freedom.

          Pick your own method of giving back - donations, volunteer work, etc. My own charities are four legged ones - SPCA, local animal shelters, finding homes for rescued or abused animals and adopting rescues myself. Support something you care about and it will mean more to you.

          If I were going to invest in real estate I'd buy a smaller home as you mention. For long term investment, I'd buy up land being sold for tax or distress sales. (not houses or lots - distressed acreage near urban areas).

          kay
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  • Profile picture of the author adammaxum
    Congrats on the success.

    For everyone who suggested charity/donations...really?

    Although 300k may seem like a lot, it's definitely not time to start giving away your money yet.

    I would save & invest + pay off any bills (which you probably don't have). Put your money to work for you, and create passive income streams. Once you have enough money to sustain over a long period of time, then you can start giving some of it away to causes you feel passionate about.

    Good luck, and I wish you continued success.
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  • Profile picture of the author Henry White
    First, incorporate, if you haven't done so already.

    Second. either through your attorney or CPA, find a certified financial planner. Then use their expertise to custom-design the perfect portfolio. They are not cheap, so be forewarned about sticker-shock - but it's the best financial investment you can make at this stage.

    In today's economy, 300K is not a lot of money, and it's all too easy to burn through in nothing flat. That's how/why people who inherit a ton of money or win the lottery end up dead broke in a matter of a few years.

    You need to focus on putting that money to work for you - mostly income producing assets, not toys, not urban myths, not paranoid delusions.

    One minor tip: the minimum deposit requirement for my business checking account is offset by (usually 10 times the requirement in) liquid assets - so instead of having, say, 5-grand tied up, not making any money, I can invest in CDs and annuities earning upwards of 9-13% as opposed to the ridiculous millage the bank pays for the average daily deposit. This is nothing to sneeze at - 4,500-6,500 compounded annually against less than $300 per year.
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  • Profile picture of the author theory expert
    Banned
    Originally Posted by markethacker View Post

    I am no IM pro and had no business experience prior to last year. But I had a near death experience that made me realize that life is short, and sadly I can't take money to the grave, so I decided in 2010 to "productize myself", and turn everything I know into free and paid products that people can use.

    Long story short, the business made $60K in the first six months, and $250K+ in the following year (that's profit, not revenue)

    I bought a decent car, hired my first business partner, and I am excited about growing the business. I've also lived in rental apartments for the past 10 years, so I'll be looking for a small home to buy (hopefully this market already hit rock bottom).

    But beyond that, I'd love to hear some ideas. What would you do for yourself and for your business with $300K in the bank?

    P.S. I am not selling anything here, and don't have time to create a WSO. Sorry.

    P.P.S: I don't spend too much time on programs/eBooks/... Sorry in advance for not buying what you'll try to sell me in a pm

    P.P.P.S: If you have a master mind group of people with similar results, I am open to joining and sharing/learning.

    P.P.P.S: There is really no secret to that success - I just worked on creating quality content (I have 2 blogs, I post once every 1-2 weeks, and I share it with people who would be interesting in it. I wasn't interested in making lots of money as I was interested in creating something that would survive my own short life here.
    First of all i'd like to say I am happy that you made some coin. Secondly, could you please share your near death experience with us in detail in the offtopic section of this forum as I am interested in that particular subject. Lastly, the market hasn't hit bottom yet IMO, but, if you feel comfortable buying a home then more power to you. If I were you I would buy an income property that I can live in as well. Think like Donald Trump....every activity he does is an income generator he revolves money around his lifestyle whether it is golf,models, or, travel to various cities/countries.

    P.S. Leverage, outsource, and, make sure that whatever you buy it generates income back to you 2 fold. Think of your money as your slave/puppet, "where's my monayyy".LOL.

    P.P.S. Although, you can't take your money with you want enough of it just in case a debilitating illness strikes you or your loved ones.
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  • Profile picture of the author dessytall1
    You have been blessed by God! Give some to his Creations on Earth and Invest The Rest In A business you have really researched thoroughly.
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  • Profile picture of the author MikeTucker
    Buy a War Room membership and learn to keep making money... $150K is not very much, and life is not as short as you think... You'll probably run out of money before you run out of life.
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  • Hookers and blow, of course.

    fLufF
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  • Profile picture of the author DWaters
    Many people have suggested donaing some money to charity. This is a good idea of course. You may actually find that you enjoy donating your time even more - doing charity work at an animal shelter or a children's charity may prove to be very rewarding for you.
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  • Profile picture of the author Chris Chicas
    Unfortunately in San Francisco homes go for about a million dollars - for a descent small 2 bedroom home that is. You can use that money to put a down payment on a home here and the rest for your monthly mortgage.

    I would also invest in some good cognac, cigars and a mac to carry on with my business.
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  • Profile picture of the author GoingSomewhere
    For the life of me, why will someone make money
    when he don't know what to do with it in the first
    instance?

    Give EVERY CENT to the government and call in
    journalists and media houses to celebrate your
    benevolence.
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  • Profile picture of the author SenTosch
    Banned
    Buy Gold. Lots of it. Best long term ROI.
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  • Profile picture of the author Dr.Aljonaid
    One word. Invest. Oil, gold and real estate. And don't forget to assign part of it for charity. Enjoy life, you said it yourself, yourself, life is too short.

    Good luck and all the best.
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  • Profile picture of the author Stuart Campbell
    Create jobs for unemployed people by means of a skills centre or some sort, giving back to the community is always the way to go, but NOT WITH CHARITY, rather control how much funding you provide for a centre,university or whatever, teach them something valuable that they can use down the road to improve their lives and the lives of others
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  • Profile picture of the author Daniel Ong CW
    I read your post and I believe life is treating you good now. Give back to the community and spread around the goodness. Sharing is what makes the rich richer.
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  • Profile picture of the author pandadoodle
    IF you really got 300k sitting in the bank instead of asking a forum, why not go and seek professional advice on investment, plenty to profit to be made at the moment.
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  • If you already made 300K just by doing what you're already doing. I would say: keep doing it.

    Definitely, not let a forum decide for me
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