I think most people – myself included! – squander their good luck. As a result, we think we’re far less lucky than we are.
Imagine that you’re doing moderately well (and I hope you are). Your bills are paid, your health is fine, there’s nothing particularly pressing on your horizon. Suddenly, you get a small but unexpected windfall; maybe you win a raffle, or a gifted lottery ticket hits for a small amount, etc. You get something like a thousand bucks.
What do most people do with it? Probably something like whatever your first thought was: a nice dinner for your family, a small vacation for yourself, maybe a shiny new toy you’d like. After all, this is “free money,” so why not let yourself have a little fun with it? Assuming your savings rates and bills and such are already where they need to be, what harm does it do?
Well… no harm, really. But definitely a missed opportunity. Ask yourself a different question: What keeps you from investing a thousand dollars into the stock market right now? The answer is probably along the lines of “I don’t have a spare thousand bucks to fritter away learning how to invest without losing my shirt.” The upside of investing is, of course, enormous. Especially in comparison to the upside of a nice dinner or new toy. But when we suddenly do have that luck, we don’t come back to questions like this.
All I’m saying is: You should have fun. But “fun” should be a part of your plan to begin with! It should be budgeted and accounted for. A sudden windfall, of any kind, should perhaps instead be used to multiply itself. Reinvest your luck!