Its very hard for people to spend wisely when they recieve a windfall.
This article in the Chicago Tribune spotlights a September 11 widow who blew most of her $5 million death benefit on designer clothes, shoes, trips, and gifts.
It also offers six tips for lottery winners, and others who have recieved windfalls:
1. Don't do anything with the money for 3-6 months.
2. Develop relationships with professionals who can help you with things such as taxes, fiancial and estate planning, and insurance.
3. Dream a little. Indulge a little bit, and select meaningful long-term goals.
4. Make a plan. Treat the money with the same respect you would treat a paycheck.
5. Enjoy the money in moderation. Before buying a BMW, rent one for a few weeks to see if the thrill wears off.
6. Give. Share money wisely with family members and/or charities.
0 comments:
Post a Comment