How to Stay Grounded When You're Faced With Sudden Wealth
One day you wake up, and everything in your world has changed. Suddenly, you're facing a challenge you never thought possible: you have come into a large sum of money. Either through inheritance, the lottery, or some other means, this is a very shocking and life-altering experience. Overnight, you have gone from worrying about finances to not having to worry.
This can certainly be a dream come true, but with this comes a lot of uncertainty. How will I manage my funds? What will I do with it all? How can I invest this responsibly and fiscally?
When you're facing sudden wealth, it will likely remove the financial burdens you previously faced. However, it can bring a variety of new challenges that you have to deal with. If you're struggling with your new reality, here are some ways you can stay grounded after receiving a windfall.
Take it One Day at a Time
While you are likely dealing with a lot of shocks right now, you are probably feeling anxious. But one of the first things you should remember is that you don't need to rush into any decisions. So whether that money has hit your account or you have paperwork to file to make it official, you don't need to rush.
It's important to remember that you don't need to decide what you should do with this money right away. In fact, it is much better to sit on any decisions for a while. Why? We all know that phrase that goes something like, "the money is burning a hole in my pocket," meaning we are itching to spend it. Don't. Not yet, anyway.
You can help your stress over this newfound wealth by doing nothing about it. It will help you prioritize in the long-term what is important for you and will help you to not spend it on something you may later regret. And knowing that you are responsibly preparing for your future will give you peace of mind.
Make Lists
Most people underestimate the power of organizing thoughts through lists. It can help you stay on track and plan for the future. If you are suddenly facing an influx of money, you have likely already run through the possibilities. Paying off credit card debts, loans, or even your mortgage. Then there are the fun things like going on that vacation you've always wanted to.
Whatever is on your list, it's easy to feel tempted to start spending right away. After all, you have the money, so why not? Well, for starters, it's been proven that when someone comes into a large windfall, they are more likely to spend it all within the first year.
Prioritize what you want to use the money for most and what would be most useful for your future. This will look different for everyone, so take time to really think about this. Connecting with financial professionals who specialize in helping people with wealth management is strongly encouraged. Prioritizing what you want to spend the money on will help you allocate your funds efficiently and ensure you're well prepared for the future.
Stay Grounded
If you want the best way to stay humble, it's this—stay grounded. In some capacity, you have likely struggled with money at some point in your life. Now that you have the wealth you have only dreamed of, it can be tempting to splurge. It can change anyone's life, but you have control over the money. Do not let the money control you. Again, do not let the money control you.
To stay grounded and keep inner balance, remember your roots, where you came from and the values that matter most to you. While it may seem that you have a new lease on life, staying grounded will help you manage your new finances efficiently and ethically.
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If you have recently received an inheritance or large sum of money, counseling can help you through this new chapter. Feel free to reach out to me so we can talk about the challenges you are facing.