Since sudden wealth often comes with a huge life change such as a death, a divorce settlement, or the sale of a business it can be an extremely emotional experience. How you react during this time, and the choices you make, can have a huge impact on your financial future. Money coaching for sudden wealth is a great way to ensure that your emotions don’t dictate your decisions.
What is Sudden Wealth?
Sudden wealth is when you get a large sum of money that you weren’t expecting. This takes many forms including divorce settlements, inheritance, lottery winnings, or profit from selling a business. Sudden wealth is not defined by any specific number, but we typically think of it as a life-changing event. This is because it can be in fact life changing if handled correctly. What you do with your sudden wealth is important. That’s where money coaching comes into the equation.
Processing the Emotional Side of Sudden Wealth
It’s important to take time to process your emotions. Sudden wealth can create fear, guilt, anxiety, and even paranoia. If your sudden wealth involved the death of a loved one, many people experience guilt over receiving and spending the money. If the sudden wealth is the result of a divorce, people may make rash decisions based purely on emotion.
Furthermore, sudden wealth can create emotional situations like having friends or family unexpectedly ask to borrow money. As a rule of thumb, its best to get used to saying no and do your best to keep your financial situation private. Speaking to a money coach can help you avoid common pitfalls associated with sudden wealth and allow you to use the money to your advantage and in a thoughtful and strategic way.
Money Coaching for Your Sudden Wealth
Before you make any purchases, it’s important to speak to a professional. First, you need to deal with the tax implications and reassess your insurance needs. But then, you need to focus on long-term goals, not just material things you can buy right now. Sure, a new car may sound nice, but is it better than early retirement?
Using your money strategically can have a significant impact on your future. If you have debt, it may make sense to pay it off. If you don’t have a retirement account, get one asap and start contributing. Speak to a money coach about investment opportunities. Think about your goals and then make your money work for you.
Consider getting more educated about finances or hiring a financial advisor experienced in wealth management to learn about how to grow and protect your wealth. Even if you are working with a money coach, it’s important to understand and trust their advice. If you don’t know whether to start with paying down debt or saving for retirement, a financial advisor is a great support resource to help you sort it out.
Money Coaching for Sudden Wealth in Virginia
If you have recently come into sudden wealth, take a minute to pause and plan before you act. The decisions you make now will have a lasting impact on your future. If you are interested in learning more about financial planning for sudden wealth, please contact Argent Bridge Advisors today.