It’s All about the Dollars and Cents
Successful stewardship of a financial windfall mandates that you have difficult conversations. They are going to happen, and they are not easy. You have to accept this and take responsibility for having them in a productive, respectful way. Through my own journey, I felt the most empowered when I took an active role in understanding the expectations of others. It’s crucial to comprehend that your windfall is not just about the money but also includes a bevy of complicated emotions that needs to be thoughtfully managed as well.
Someone Can Do It for You
Sudden wealth provides an opportunity for many things. One of the most important is the opportunity to take a leadership role with not only your money but also your life. At the beginning of my journey, I was afraid to ask, “dumb questions” and didn’t want to seem inexperienced in front of my adviser, so I wouldn’t ask anything at all. It’s essential to realize that no one is going to care for your money as much as you do, and educating yourself is part of the process. This is something you have to want for yourself. Realize the opportunity to grow, and get comfortable with being uncomfortable.
The Money Part Is Complicated
You’ve become proactive and are handling the complicated emotional aspects of sudden wealth. Now, your two biggest threats are spending too much and making bad investments. I’m always surprised by how many people (windfall recipients and otherwise) have no idea how much they spend per month. This is something you need to have a handle on and must monitor regularly. Make sure to include everything, including what you’re paying your financial adviser. Also, know what you’re investing in, and make sure to diversify broadly. Keep things manageable and understandable.