An article on KBC winner Sushil Kumar’s Finances in Hindustan times yesterday made me publish this long back written unpublished post on how one should manage big money from Gameshow or Jackpot.
Life has come full circle for Sushil Kumar, winner of the fifth season of Sony TV’s popular game show Kaun Banega Crorepati (KBC) in 2011, the first one to offer Rs 5 crore as prize money. Within short time span of 3 years, he is left with almost nothing in hand and not even gainfully employed as he was prior to winning prize money.
Winner of KBC, season 8 Delhi boys Achin and Sarthak Narula are still in shock after winning 7crore in the Jodi Special episode of Kaun Banega Crorepati.
What exactly they should do to avoid such a state. It is equally important to understand that it is not easy to manage big monies.
They should remember one Golden Rule that winning Big Sum of money is not the end but just the beginning. They should focus on the following 5 points for happier times head:
- Don’t blow off all the money:It’s crucial not to blow off the money on Luxuries. They will have so much to do. However, more they pull off themselves from fantasies, better it is for the them.
- Tax Angle: This isone angle which should not be ignored. Winning prize money is subject to tax at 30%+ under provisions of the Income Tax Act, 1961. So, here Rs.7 crores won will give in hand Rs.4.90 crores only.
- Stay away from Complicated/ HNI products:They should not consider the proposals given by people hovering around to sell so called HNI/Complicated products.
- Investing with allocation towards Goals:They should consider investing for the future with keeping goals in mind. Some portion should be allocated towards their retirement corpus, some towards Child/ education marriage if required, some towards Emergency Fund, some towards house and so on.
- Remain Grounded:Last but not the least, Remain Grounded. What it actually means is not to let success get to your head or get caught up in your dreams. Keep your feet on the ground while looking to the sky, and don’t get caught up in fantasy.
“The suddenness with which their lives have been transformed will bring them into limelight which is nothing but temporary and fickle.”
Gurleen Kaur is a Financial Consultant and devotes her time to her company www.hareepatti.com. She has done her Bachelors in Finance and Investment Analysis(BFIA) from College of Business Studies(CBS, Delhi) and MBA from IMT, Ghaziabad. Currently she is also pursuing her studies in order to become a Certified Financial Planner.
She can be contacted at gurleen@hareepatti.greatestdesignever.com
This is a great read.
It normally happens when one receives a Windfall in anyway or even after he sells some property, He keeps flowing in happiness only to realise later that most of his earnings/Money has just sailed away to nowhere.
And by that time it is too late to take any measure.
Also, later on this grievance always weighs heavy on the mind and makes it tougher to get life on track.
Add to this the Public Image created due to this success has to be maintained too and that adds as the last coffin.
I will Ensure to share this with every client of mine who sells a property and then sleeps over it for even a week.
Thanks jee
This is a great read.
It normally happens when one receives a Windfall in anyway or even after he sells some property, He keeps flowing in happiness only to realise later that most of his earnings/Money has just sailed away to nowhere.
And by that time it is too late to take any measure.
Also, later on this grievance always weighs heavy on the mind and makes it tougher to get life on track.
Add to this the Public Image created due to this success has to be maintained too and that adds as the last coffin.
I will Ensure to share this with every client of mine who sells a property and then sleeps over it for even a week.
Thanks jee
One should always think of him/herself and not leave the crucial decision making to the experts.One must have the finance in his control ~ Chankya.
One should always think of him/herself and not leave the crucial decision making to the experts.One must have the finance in his control ~ Chankya.
I agree with your observations.
I agree with your observations.