3 steps for handling sudden wealth

You’ve heard about professional athletes who make some quick millions, see their career cut short and are broke a few years later. To some of us, this seems insane. But the reality is, if a newfound wealth is suddenly in your lap, you may not be ready for it either. Here are three steps you should take if you find yourself with a shiny new pile of cash…

Don’t tweet about it: I love when someone local wins the lottery and chooses to remain anonymous. It’s a fantastic decision. Whether it’s a cousin you haven’t talked to in years or an old friend looking for a business partner, the news of your new wealth can bring all kinds of characters out of the shadows. At some point, people will find out about it, but it’s probably best to keep it quiet while you’re adjusting to your new wealth.

Take your time: You may have the urge to go buy a new car, a new house, a boat, and a bevy of other things you’ve always wanted, but hold up a second. This kind of spending is what may lead you down a path to bankruptcy. Take some time to think about your life, make a plan, and then make some smart money decisions for your future.

Get a money guy (or gal): Just like Barney Stinson had his guy guy named Guy, you’re going to need a financial guy. Everything about your life has now changed. And don’t just find the first advisor that you scroll past in your Google search. Read reviews, ask friends and family for recommendations, and be sure you’re picking a financial advisor you can trust.

 

John Pettit

John Pettit

John Pettit is the Managing Editor for CUInsight.com. John manages the content on the site, including current news, editorial, press releases, jobs and events. He keeps the credit union ... Web: www.cuinsight.com Details

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