I have come into Money - What do I do now?

By Regan Murphy

Imagine waking up every morning with a deep sense of financial security, knowing that you have the knowledge and tools to navigate the unpredictable world of money. Picture yourself confidently making smart financial decisions and effortlessly building wealth. It's time to stop dreaming and start acting!

 

In today's fast-paced society, financial literacy is more crucial than ever. Whether you're just starting out or looking to enhance your financial skills, this book is the ultimate guide to achieving financial freedom. It does not matter how you much you have or how you've made your money—it's all about being empowered to make informed choices, pave your path to prosperity, and create a legacy that lasts. Are you ready to learn how?

 

Inside I Have Come Into Money—What Do I Do Now? you'll discover

• strategic insights into how to gain a clear understanding of personal finance and develop a solid financial foundation.
• how to master the art of investing and grow your wealth steadily over time.
• practical tips you can start implementing right now to create and stick to a budget that aligns with your goals, no matter how difficult this has been for you before!
• the best ways to navigate the complexities of taxes, insurance, and retirement planning with confidence.
• how to harness the power of mindset to overcome financial obstacles and achieve lasting prosperity.

Don't settle for a life of financial uncertainty. Take control of your future today and embark on a journey toward financial freedom. Discover the secrets to financial success through practical tips, unleash the potential within you, and transform your relationship with money.

 

Grab your copy of I Have Come Into Money—What Do I Do Now? today and unlock the door to a brighter tomorrow. Your financial success starts now!

• Language: English
• Publisher: Michelle Strachan
• Release date: Dec 8, 2023
• ISBN: 9798223726166

Book preview

Introduction

Dreaming of a windfall and really receiving it are two different ball games altogether. Some people build their nest egg bit by bit, contributing small portions of their earnings each month to make sure they achieve financial stability by a certain age. But what if you got access to a huge nest egg all of a sudden? How would you react? Are you prepared to handle it? Would you go on a vacation without a return ticket or buy a super luxurious eight-bedroom mansion? There could be many different fancies, which you may want to fulfill if you get hold of an unexpected inheritance, lottery money, business profits, or return on investments.

You may have many ideas on how to use your new found wealth, but implementing them requires caution, discipline, and prudence. You can’t be carefree with your money just because you’ve got oodles of it. The more you have, the bigger your responsibility is to manage it well. Yes, of course, with money comes financial power, which can enable you to solve many of your financial problems pronto and achieve all your financial goals, but it doesn’t end there.

While it’s wonderful to tick things off your wish list with the money that you’ve gained, it’s imperative to manage your momentary emotions and not make decisions that you’re likely to regret later. It’s easy to spend it all or get trapped by get-rich-quick kind of investment advice, but it takes patience and understanding to truly amplify your wealth.

If you’re someone who has attained significant wealth in recent times and is wondering what to do with it, this is a guide on how to retain and grow it. When you get access to money, your priority should be to increase it and not to consume it without planning. Therefore, this book has carefully crafted money lessons for you to help you gain insights into how to build a solid financial foundation by setting specific goals, budgeting, and making wise investments; all these practices will enable you to create generational wealth. It’s important to understand that without financial education and practical knowledge, it’s not surprising to go astray with your money.

It’s necessary to make monetary choices based on logic and analysis rather than emotions. Those who struggle to distinguish between profitable opportunities and potential losses should take note of this. You may think today that you’ve got plenty of money and you can easily afford whatever you like and also invest in something that pays high returns immediately, but it’s not so straightforward. You should never forget that when you have high gains, you have high tax obligations as well, which you can’t avoid. You need to see everything in totality before making a move.

It’s okay to feel overwhelmed and anxious at this point—whether you have already attained a great amount of wealth or you expect to receive it sometime in the future. If you’re confused, fearful, and a little stressed, take it as an opportunity to learn how to handle money in a way that rewards you—it should motivate you to take action toward preserving your wealth, which you don’t intend to spend immediately. To begin with, you must aim to secure your financial future by thinking long-term and developing a comprehensive financial plan that aligns with your goals and values.

To achieve a perfect balance between enjoying your newfound riches and saving them for a greater future, you must stay away from bad money habits. The right attitude is to constantly learn how to protect and build your money. To achieve that, you may want to seek professional advice to be able to understand how money works and make sensible financial choices tailored to your unique circumstances. It’s time for you to get introduced to concepts like smart tax planning, strategic risk management, and thoughtful estate planning.

You don’t have to rely on any particular investment option or asset class for your wealth to increase, but you should be open to different options and ideas. The more financially mindful you become, the better your strategies will be for a prosperous future.

After you’ve read this book, you’ll know how to manage your finances and make informed financial decisions. You’ll also understand how to develop the necessary financial literacy skills and knowledge to navigate complex financial situations confidently. All this will help you set a long-term vision and employ disciplined financial planning tactics to achieve financial peace. Furthermore, you’ll also learn risk management techniques to safeguard your assets against unexpected events.

The purpose of this book is not to give you any surefire method of growing wealth but to guide you on how to be clever with your money and take steps toward financial freedom. The essence of being financially astute is to have the necessary foresight to aim for financial security rather than spending all your money now for short-term pleasure. Whether you have a small amount of money or a large pool of wealth, both require wisdom, planning, and the right decision-making on your end. If you take all the facets of financial management into account and execute everything carefully, there’s no room for anxiety. You won’t have to bother with the changing nature of the market or watch your investments all the time. The right financial mindset puts everything in place.

So, embrace your newfound riches! It’s an excellent chance for you to secure your retirement, reach all your life milestones without any debt obligations, and fulfill all your dreams without delay. You can do all of that and more if you simply avoid the mistakes typically made by people who have little or no financial awareness.

Let’s begin the journey of being a master of financial planning and taking charge of your future.

Chapter 1: Understanding Your Newfound Wealth

If you want to be financially free, you need to become a different person than you are today and let go of whatever has held you back in the past. –Robert Kiyosaki

Who doesn’t like sudden wealth? There’s nothing better than gaining a large sum of money, and it does happen to many people. But it’s not as far-fetched as it may sound. Young children inherit wealth from their parents, and folks like athletes, movie stars, and celebrities can pass down a lot of money in one instance. Then, of course, there are lottery winners, prize-money winners, and people who sell their businesses or gain money from a lawsuit, severance, or redundancy package. There are various possibilities of unexpected riches, but knowing how to manage them is critical.

Handling sudden money can be challenging. It can be a life-changing experience. It has many implications and responsibilities, and it’s necessary to make wise decisions. If the money is a large amount, you’ll have to fulfill the tax obligations and understand how you will utilize and allocate the rest of it; and, if the money isn’t too significant, you need to be careful about not losing it all. Moreover, taking charge of your mindset is imperative when you receive or are about to receive an incredible amount of money. It’s standard for people not to be able to sustain their wealth because what’s more critical than possessing money is making choices that you won’t regret later.

So, let’s understand the concept of sudden wealth and the emotional impact it can have on you. Also, let’s understand how to keep yourself from going astray with your money by setting some financial goals, considering the tax and legal liabilities, and preparing for generational wealth.

Defining Sudden Wealth

Any amount of money that you receive unexpectedly can be termed as sudden wealth. The main idea behind this kind of money is that the receiver isn’t used to handling it. They may be earning a regular income or fostering a retirement fund, but getting an additional amount of money overnight can be unnerving.

Windfalls Versus Earned Income

In order to navigate tax implications and financial planning, you must understand the key distinctions between sudden wealth and regular income. As the name suggests, sudden wealth or a windfall is any money you attain from a particular source without your active or passive contribution; in contrast, earned income is your regular income, which you earn on your own. It can be through a regular job, contractual job, business, freelance work, or a passive source like rental income, royalties, dividends, or other similar sources.

Now, since you acquire them differently, the tax liabilities are also going to be different, and you’ll have to plan how you’ll use them and invest accordingly. With unexpected riches, you already have the money at hand, and you need to plan how you want to utilize it efficiently. With an earned income, however, you set goals not just for what you have already, but also for what you’re going to earn in the future.

Impact on Financial Identity

Sudden wealth can make you a different person altogether. You’ll have a new financial identity because protecting and optimizing a windfall is totally different from managing a monthly paycheck. If you’re not prepared for it, you may feel uncomfortable about the whole situation and may not know what exactly you want to do with your money.

People who have a poor financial mindset are likely to make big-ticket purchases in excitement and may even blurt out about their newfound wealth to their friends and family. However, it’s necessary to comprehend your role as a financial steward before taking any action. Be aware that making any financial decision with your old mindset may not work anymore; you’ll have to adapt to a new mindset to be able to manage your new wealth in a manner that doesn’t make you go broke but aids in long-term financial growth.

Psychological Factors

There can be many psychological factors that may prevent you from taking the right action toward handling your money. For instance, those who have a scarcity mindset may feel tempted to spend the money quickly before it’s gone. The scarcity mindset causes you to prioritize immediate needs, which can provide temporary relief but may not necessarily be a good decision considering the long-term financial stability. On the other hand, an abundance mindset will likely see you approach the same situation with a longer-term perspective. You may consider investing the money in your future, such as setting up a business or saving for retirement. While patience may be required before reaping the rewards, an abundance mindset can lead to greater financial security in the long run. So, have your pick accordingly.

Emotional Impact

An overnight fortune can affect your emotions quite intensely. There’s a condition known as the sudden wealth syndrome, which defines the state of mind of somebody who’s unable to manage their emotions due to unexpected financial windfalls.

The Sudden Wealth Syndrome

As mentioned in Investopedia, sudden wealth syndrome can be defined as a type of emotional turmoil that a person who has received a large amount of wealth in a short span of time goes through. Such individuals tend to make choices that may not align with who they really are and what they believe in. Their behavior is also likely to change in a way that people who are close to them may also notice. For example, they may want to stay aloof, think their good fortune is undeserved, and develop illogical insecurities about their money (Chen, 2020).