Don’t you just love it when you go to your favorite convenience store, buy that scratch-off lottery ticket and win? Whether it is winning the Powerball, running the table at blackjack or receiving an inheritance, windfalls come in all forms. And while it might seem like receiving a windfall is everyone’s dream come true, if not handled properly, it can turn into a nightmare.
As we explore the various ways windfalls occur and what you need to do if this happens to you, we will also learn about how to handle the range of conflicting emotions you might feel.
Windfalls may happen under exciting circumstances like winning the lottery, selling a business, or receiving a big unexpected bonus check. But, they can also come under not so great circumstances, like receiving an inheritance after the death of a loved one, getting an insurance settlement after a tragic accident, or getting a severance after losing a job.
These circumstances can cause you to experience feelings like guilt, joy, fear or elation. Knowing how to deal with these feelings, while also making smart decisions about this newfound money is what we want to explore over the next few weeks.
Regardless of where you are in your life when you receive this money, you will want to make sure you chunk out your decision-making into three categories. These will be decisions that have to be made now, next and later. This will guide you through what to do while you are figuring out what this new money will mean to your life.
By processing your decisions into these three categories, you will be able to make key choices about what you must do immediately and what can wait. This gives you much needed breathing room to decide what is best for you. We will also look at how to handle financial requests from friends and family. This can be a tricky area for many, but one that if not handled can result in broken relationships and upsets.
And finally, we will evaluate how the way you receive money can impact your decision making. We will discuss the questions you must consider when receiving this money, such as where you should consider investing. What are the tax implications and legal ramifications to receiving money? What types of accounts should you be setting up to protect this money and where can you go to get specific guidance?
Getting unexpected cash can be a blessing and if handled with clarity, can give you the freedom to do so many important things for your future. Imagine what it would feel like to pay off debt, secure a child’s education or start that passion project. With the right knowledge, you can make sure all these become a reality with money left over to buy more lotto tickets.
Ande has made it her mission to break down the emotional, behavioral and societal barriers that stand between women and strong financial foundations. She's widely recognized as a driving force in the financial community, having risen to the top of the primarily male-dominated insurance world as the former head of a multi-million-dollar fintech company and a VP at Penn Mutual. Ande launched myWorth to inspire a financial awakening among women who are eager to take control of their financial journeys. Her first book will be published in October 2019.