NewsLo
  • Today’s Headlines
  • Featured
  • US
  • Politics
  • World
  • Media
  • Sports
  • Privacy Policy
Subscribe
NewsLo
NewsLo
  • Home
  • Business
    • Accounting
    • Advertising
    • Branding
    • Career
    • Customer Service
    • Cyber Security
    • Entrepreneur
    • Jobs
    • Management
    • Marketing
    • Non Profit
    • Search Engine Optimization
    • Sales
    • Web Design
  • Finance
    • Banking
    • Bankruptcy
    • Budgeting
    • Credit
    • Debt
    • Estate Wills & Trusts
    • Home Improvements
    • Law
    • Loans
    • Personal Finance
    • Taxes
    • Shopping
  • Investment
    • Crypto Currency
    • Gold & Silver
    • Hard Assets
    • Real Estate
    • Retirement
    • Stocks & Bonds
    • Trading
  • Real Estate
    • Buying
    • Selling
    • Commercial Construction
    • Construction Law
    • Home Improvement
    • Loans
    • Property Management
    • Real Estate Laws
    • Rental Property
  • Insurance
    • Auto Insurance
    • Commercial Real Estate Insurance
    • Crop Insurance
    • Dental Insurance
    • Disability Insurance
    • Health Insurance
    • Home Owners Insurance
    • Identity Theft Protection
    • Insurance Law
    • Investment Insurance
  • Contact Us
  • Finance

5 Critical Money Management Tips to Handle a Sudden Windfall

  • October 7, 2020
  • News Lo
Total
0
Shares
0
0
0

Table of Contents

    • 1. Calm Down
    • 2. Know Your Limitations
    • 3. Focus on Conservative Investments
    • 4. Take a Chance
    • 5. Play Hard to Get
  • Money Management Rules the World

Most people have fantasized about winning the lottery. But what most people don’t realize is the aftermath of sudden fortune.

Most lottery winners end up bankrupt in just a few years of their cash windfall. Is there a curse on winning lottery tickets?

No, it all boils down to money management. If you’re expecting a sudden windfall of cash here are 5 critical money management tips to help you keep your fortune intact.

1. Calm Down

Yes, you heard that right. Calm down.

You just received a windfall of cash, but it doesn’t change the fabric of human existence. Too much emotion can mean overzealous behavior.

Don’t touch the money or make any further decisions until the excitement wears away. Euphoria has a way of tricking the brain into feelings of invincibility.

This is the fast track to ending up broke again in the blink of an eye. Do your happy dance, celebrate with friends over drinks, but do not make money decisions while under the influence of endorphins.

A Structured Settlement might be the ticket to helping you gradually enjoy your money without losing it.

2. Know Your Limitations

Rising up on the status ladder can give you an instant sense of security and confidence. In the parable ‘Acres of Diamonds,’ the merchant grows his fortune exponentially from a small investment.

He does this by knowing his limitations and only investing in the things he knows about. Avoid trying to launch new businesses where you have no experience.

Don’t offer money to family and friends who claim to have a viable money-making opportunity if they don’t have experience in the venture. Being conservative with your spending is about knowing your limitations.

Move forward with caution to avoid losing all your money.

3. Focus on Conservative Investments

Start investing in areas with proven returns. Aggressive investments are a great option once you’ve got a diverse retirement portfolio.

But at least 60 percent of your finances for retirement should be placed in conservative to moderate investments. Think total stock market index funds or ETFs.

These might not be the most glamorous investment vehicles for retirement, but they’ll beat the market in the long run with modest guaranteed returns.

4. Take a Chance

Money management isn’t about hiding your riches under a mattress in hopes it’ll one day have little money babies. Your money can’t grow when it’s stagnant.

If you’re a person who never takes risks, now is the time to take a chance. Feel safe in know that you could lose 20 percent of your cash windfall and it wouldn’t equal financial ruin.

The trick is not betting the ranch on a hunch just because it worked for someone else.

5. Play Hard to Get

It’s a good idea not to keep your money in an account that’s easy to access. If there are multiple steps between you and spending your cash windfall, it slows down your ability to spend.

This is a good money management technique if you’re prone to impulse buying.

Money Management Rules the World

Emotional spending is at the crux of all poor money mangement. A good system of financial management is the key to investors getting a good return on their dollar.

Put those same responsible vibes out into the universe as you enjoy your recent windfall of cash. For more information and tips, visit our blog for updates.

Total
0
Shares
Share 0
Tweet 0
Pin it 0
Avatar of News Lo
News Lo

Welcome to Newslo! Our team of dedicated authors strives to deliver the latest and most important info on finance while infusing a dose of our own style to give you a unique experience. Whether you're looking for in-depth discussions on investments or solid finance tips, we have something for everyone. Our goal is to deliver you the best possible content. So, keep reading our articles and give us your feedback!

Previous Article
  • Health Insurance

How to Choose the Best Health Insurance Provider for Your Business

  • September 29, 2020
  • News Lo
View Post
Next Article
  • Real Estate

7 Tips for New Real Estate Agents: This Is How to Grow Your Business

  • October 8, 2020
  • News Lo
View Post
NewsLo
  • Today’s Headlines
  • Featured
  • US
  • Politics
  • World
  • Media
  • Sports
  • Privacy Policy
Navigating the world of finance, one step at a time.

Input your search keywords and press Enter.