NewsLo 📊
NewsLo 📊
  • Home
  • Business
    • Accounting
    • Advertising
    • Branding
    • Career
    • Cyber Security
    • Entrepreneur
    • Jobs
    • Management
    • Marketing
    • Non Profit
    • Sales
    • Search Engine Optimization
    • 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
    • Life Insurance
    • Pet Insurance
    • Renters Insurance
  • Contact Us
money management
  • Finance

5 Critical Money Management Tips to Handle a Sudden Windfall

  • October 7, 2020
  • NewsLo
  • No comments
  • 3 minute read
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
NewsLo

Previous Article
health insurance provider
  • Health Insurance

How to Choose the Best Health Insurance Provider for Your Business

  • September 29, 2020
  • NewsLo
View Post
Next Article
tips for new real estate agents
  • Real Estate

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

  • October 8, 2020
  • NewsLo
View Post
You May Also Like
send money
View Post
  • Finance

How To Send Money To Your Family When You Are Deployed

  • NewsLo
  • March 14, 2021
loved one
View Post
  • Finance

3 Ways To Help Your Elderly Loved One Protect Their Money

  • NewsLo
  • March 8, 2021
Financial Services Website
View Post
  • Finance

Is Your Banking and Financial Services Website Compliant with the ADA?

  • NewsLo
  • February 16, 2021
financial instruments
View Post
  • Business
  • Finance

Top Financial Instruments You Can Trade

  • NewsLo
  • February 12, 2021
tax tool
View Post
  • Taxes

Here Are 4 Free Online Tax Tools for You

  • NewsLo
  • February 7, 2021
Spy Camera
View Post
  • Business
  • Technology

Tips To Choose The Best Spy Camera

  • NewsLo
  • February 5, 2021
UX strategy
View Post
  • Technology

How to Create a Quality UX Strategy for Your Website

  • NewsLo
  • December 20, 2020
Surprising Minnesota Supreme Court
View Post
  • Law

Surprising Minnesota Supreme Court 2nd Amendment Unanimous Decision

  • NewsLo
  • December 16, 2020

Leave a Reply Cancel reply

You must be logged in to post a comment.

NewsLo 📊
  • Today’s Headlines
  • Featured
  • US
  • Politics
  • World
  • Media
  • Sports
  • Privacy Policy

Input your search keywords and press Enter.