Dealing with a windfall is the sort of problem few people mind having. Most of us would love to have a pile of cash fall in our lap, expected or otherwise, whether it’s inheriting money from a relative, receiving a bonus from work or winning the lottery. While blowing the money in a crazed shopping expedition may be your first thought when you land a windfall, it’s best to take a step back and plan how to deal with the money wisely.
1. Hire Professional Help
Though it might be difficult, try not to make any rash decisions right away, such as buying that spiffy convertible straight from the showroom. Instead, seek out qualified assistance such as financial adviser or tax professional to help you make sense of the new circumstances you find yourself in.
It’s important to decide on the key things you want to achieve with the windfall. A financial adviser can show you how to reach your goals, but the vision starts with you. Whether it’s buying a new house or providing for your children’s college education, you need to be clear on what you want the money to do for you.
3. Learn to Say No
When news of your good fortune gets out, friends and relatives may start coming out of the woodwork looking for a piece of it. While you may want to help out some people, learn to say “No” to the requests that come your way. If you don’t set limits, you could end up penniless.
4. Reward Yourself
It’s not every day you get a windfall, so go ahead and spoil your family. While you probably shouldn’t take a month-long cruise in the Mediterranean, you can certainly book a weekend getaway at a fancy hotel to celebrate your good fortune.