Prepare Yourself For A Financial Windfall

A financial windfall is what happens when you suddenly come into a large sum of money. This may come about in various ways, but I will only list a few here. A financial windfall may come as a cash gift, it may come as a large bonus for work done, it can come as a retirement payout, or a severance package, it may be from an inheritance, or the sale of a business, or a winning lottery ticket, it can even be a compensation for winning a court case. What am I trying to say? A financial windfall can come from anywhere, and at anytime. You can either be expectantly awaiting it, or it can take you by surprise, when you least expect it.

Now let me ask you a straight question, what would you do if you suddenly came into a whole lot of money? I know what some of you would say... You would probably buy landed properties, or buy yourself a new car, or maybe start that dream business, or you may put it away for your retirement, or pay for an exotic vacation, or simply do what comes easiest, go on a shopping spree.
Whatever you do decide, the fact is that a financial windfall always presents you with unique opportunities as well as challenges. It is a given that every facet of your life will change as you are faced with so much options on 
What to do with the money. Sometimes this can be really overwhelming, this is why its important to be prepared, to know what you can do to help you make the most of a financial windfall when it comes.

I will list out a few advices most  financial gurus have pointed out that can really help to put you on a sure footing.

1. Do not rush to spend the money. Take some time out maybe a month to 3 months after receiving the cash windfall to adjust your mindset to this new financial status, and to effectively plan and map out a strategy for putting the money to good use.

2. Deposit the money in a money market, for the period of time you are still thinking how best to use the money, so the money can be earning interest for you rather than lying idle.

3. Start educating yourself financially, read books that will help build and structure your finances, the more you learn about how to manage your finances, the easier it will be for you to preserve and nurture your wealth. Talk with financial advisors, seek expert help and opinions on financial matters. Truthfully speaking most people do not have the time and expertise to manage their personal finances properly. It is wisdom in such a case to have financial advisors handle that. Financial advisors have that unique ability to take your objectives and priorities into consideration, and help develop financial plans to suit you.

4. Make long term plans for the funds. Plan and implement strategies for the funds that will help it to appreciate over time, such as long term investments in land, government bonds and treasury bills


Other things you should not overlook when you come into a lot of money, but should handle very carefully I will also list out. They are also important, and it is good to pay attention to them too.

A. Pay off your debts, or reduce them as much as possible. When I talk of debts, I mean personal loans from family and friends, bank loans and mortgages

B. Help out less privileged loved ones. Be wary of family and friends that suddenly come up with business plans and ideas for your money, make sure you do a proper background check, and thoroughly scrutinize their business initiatives before financially involving yourself.

C. Have a plan for your estate. Prepare a will if you do not have one, or update your existing will. Work with a lawyer specialized in estate matters, to have this really important area of your finances sorted.

D. Give your life a sense of purpose by helping others. Think of people you wish to help; it may be family, friends, or doing philanthropic acts

E. Enjoy yourself and spend some of the money on yourself. Don't be too impulsive, budget how much you are willing to spend on yourself, then make a list of the things you really want, and go out and get them.

Do you know that up to three-quarters of people who suddenly receive huge financial windfalls usually end up losing it all within just a few years. What am I saying? A financial windfall if wisely handled can grow into a lasting financial legacy for the receivers of the funds to many generations after them, but if poorly managed can be very disastrous to such receivers of the funds, as they will most likely end up far worse than before they received the financial windfall. 

A financial windfall is waiting for you just around the corner. So be wise and be prepared.

Till you hear from me again, let wealth and riches be in your homes. Bye