How to Prepare for a Windfall

A wealthy family member has passed away, your work is giving you a large bonus, you are getting your tax refund... Whatever the case, you are coming into a large sum of money. While remembering that circumstances change and the money may not be a sure thing, it is a good idea to do some preparation before receiving it.


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    Don't discount a few hundred dollars...or even an extra hundred dollars. If it is not in your usual income, it is extra and can be helpful. Pay a bill, treat yourself, buy a gift...whatever you like.
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    Remember nothing is guaranteed. Do not spend the money before it is in your pocket. With the ever changing economy and unforeseen events that may occur the quantity of money you receive may be less then expected.
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    Start creating a list of possible ways to use the money. Brainstorm all of the things that you need to accomplish that you couldn't do without the money such as travel or pay down debt.
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    Discuss the potential windfall with trusted friends. The assistance they may be able to provide in prioritizing your spending may be invaluable as they will be able to see the situation more rationally.
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    Consider investments. Large sums of money can grow even larger if invested correctly. Look into such investments as; Retirement Savings, Education Savings, IRAs, and Pensions.
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    Gather together all of your debt information. When you have received your windfall, call whichever debtors that you have decided to pay towards and get a payoff, or just send them an extra payment.


  • Remember not to count your chickens before they hatch. Many people who have been promised large sums of money end up receiving less then expected due to taxes, unforeseen expenses, or loss of employment.

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Categories: Buying Wisely | Managing Your Money