Unexpected Income - Windfall
Article: Six Tips on How to Avoid Squandering a Financial Windfall
We discuss in the book how to make best use of unexpected income. This article deals with not squandering larger amounts. While your chances of winning a lottery are still slim, it's still nice to arm yourself with information. It is more likely at some point you'll get an inheritance or new job and not impossible that $5 flee market find will turn out to be worth $5000. While this article focuses on very large amounts, much of the advice works for smaller amounts too.
Key points from the article:
- Make yourself aware of any tax implications
- For large amounts, professional advice is probably a good investment
- Take time to think
- Set aside 5%-10% simply for fun/enjoyment but be practical with the rest
- Get Perspective and Set Goals
- Put a Buffer between you and friends/family... (nothing wrong with sharing, but having someone neutral to consult can help you decide what requests are reasonable and/or should take priority)
We discuss in the book how to make best use of unexpected income. This article deals with not squandering larger amounts. While your chances of winning a lottery are still slim, it's still nice to arm yourself with information. It is more likely at some point you'll get an inheritance or new job and not impossible that $5 flee market find will turn out to be worth $5000. While this article focuses on very large amounts, much of the advice works for smaller amounts too.
Key points from the article:
- Make yourself aware of any tax implications
- For large amounts, professional advice is probably a good investment
- Take time to think
- Set aside 5%-10% simply for fun/enjoyment but be practical with the rest
- Get Perspective and Set Goals
- Put a Buffer between you and friends/family... (nothing wrong with sharing, but having someone neutral to consult can help you decide what requests are reasonable and/or should take priority)
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