Discovering that you've won a lottery prize or inherited a large amount of money can be the most wonderful feeling you've ever had. Your mind is likely still reeling from the news and you can't wait to improve things for everyone you know. However, for your own sanity and financial future, it's vital that you don't start doing any of these things.
Avoiding the Facts
When you find out how much money you'll be getting, you may already be spending it in your head. Before you get carried away or start promising big gifts to people, you need to know all the details and inspect all the fine print regarding the money coming to you. What will you have to pay in taxes? Will it all come at once? Are there any restrictions? Spend a few days ensuring that you understand exactly what is going on. That way, you'll be able to plan more successfully and avoid surprises.
Telling the World
Getting a lot of money is thrilling. You might want to tell your neighbors, your friends, your postal worker and even people that you meet out and about. This could be a very bad decision. For one thing, you don't want to invite additional attention from people who could try to scam you or steal from you in some way. Not only that, but once people start to find out, it's possible that they will tell you about financial hardships they have or ask for a loan. This can become incredibly stressful, especially when you haven't even had a chance to make your own plans yet. Therefore, tell only those who must know at first.
Spending Immediately
You may want to celebrate right away, thinking that just a few bucks here and there won't affect the wealth that you now have. Costs rise faster than you think, and you could end up going too far and spending a lot on things that are a waste of money. Give yourself time to adjust to your new life before running up new bills.
Waiting to Get Help
Many people who suddenly receive great sums of money think they can handle everything on their own. They end up waiting to secure professional financial advice until they've already had tax problems or find that their money is dwindling at an alarming rate. Don't wait to get an accountant, a financial advisers and an experienced team of wealth management advisers who can help you enjoy your money while acting responsibly.
Your newfound wealth can be a benefit to you, your family and others in your life. Just avoid errors that could leave you in a worse situation than before. Consult a local wealth manager today.
