What is the first thing that comes to your mind?

I guess most people like myself would start to imagine about all the good things I could buy and enjoy. This is because I thought that I have a lot of money to spare. But before I know it, I may have used up all my money.

In fact this is actually happening in the real world. Real lottery winners do lose their money because they do not know how to manage large amount of money! Search the Internet for 'lottery winner lost money' and confirmed for yourselves

Come to think of it, actually one million dollars is not a lot. If you divide one million dollars by 20 years, basically you are only getting 50K per year, which is no big deal. It is a sudden large sum of money that gave you the wrong impression of abundance.

So what to do with one million dollars? Invest in things that build passive income.

Before I start my investment to build passive income, I will get myself educated about the basics of investment and financial planning first. This is so that I will not jump into an investment without the necessary knowledge on risk management and proper financial planning.

A lot of people simply make the mistake of leaving everything to the experts completely. When their investments failed to do well, then they blame on the experts. But in the first place, they failed to take responsibility for their own money.

If I were to hire an expert, I would hire someone who had track records. Even then, I would still question and clarify on the rationale behind his financial advises. This is because he may earn money from commission through sale of certain investment. He may ask me to invest in something so that he earns more commission and not because the investment is beneficial to me. Also, I would closely monitor the investment progress actively.

At present, I would consider invest in apartments in New Zealand and Australia. One million dollars maybe can buy about 4 simple apartments that would give rental income of around 4K per month or 48K per year. On top of that, I still stand to gain from capital appreciation of these apartments. In this way, one million dollars can last more than 20 years!

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