5 Tips on How to Handle Sudden Wealth
Whether you just signed a multi-million dollar contract or inherited property from a wealthy relative, here are some tips to help you keep—and grow—your wealth responsibly
- There’s nothing like the feeling of getting an unexpected sum of money. That joy is magnified when the amounts are six, seven, eight figures or more. Of course, every coin has two sides and, typically, the greater the amount you receive, the greater your stress. In fact, there is even a stress-related disorder called Sudden Wealth Syndrome. That pressure can lead the “recently rich” to make decisions that ultimately threaten their good fortune and may leave them worse off than before they received their windfall. I think we’ve all heard stories about the lottery winners who went broke or the former professional athletes or entertainers who struggle to pay rent.
- Whether you’ve just signed a multi-million dollar contract, won the lottery, or inherited property from a wealthy relative, here are some tips that will help you keep—and grow—your wealth responsibly. —Robert J. Gordon (All Images: Thinkstock)
Another important step is to set aside a sum as “mad money”, at the very beginning, that you can spend however you wish. This will relieve some of the pent up desire to spend.