Receiving an unexpected inheritance can get many of us off guard. Receiving huge amounts of money or property after a loved one’s demise can be overwhelming for many people. And who can blame them? Losing someone you truly love cannot be substituted by earthly possessions. While there’s no denying that no amount of money can ever replace them, you can continue their legacy through wise decisions after receiving an inheritance from them. Unfortunately, many heirs ultimately blow their inheritance due to poor decisions here and there. Did you receive an inheritance recently?
Here are four poor decisions you should avoid making after receiving an inheritance;
Going on a Spending Spree
Most heirs can’t resist the urge to start spending their newly acquired wealth immediately. While paying off outstanding debts, buying a new home, adding the latest sports car in your collection or going for a lavish vacation may seem like a good idea right now but; such decisions can come back to haunt you later. Wisdom lies in stepping back and evaluating the entire situation extensively. In all fairness, you are entitled to splurge your money however you see fit, but hey, blowing your inheritance within a year can easily knock the air out of you when it all dawns on you that you had it all but lost it all carelessly. Don’t be in a rush to elevate your lifestyle, be wise and hold your horses.
Don’t be a walking bank.
There’s a big difference between being generous and stupid. Trying to solve all your extended family members, colleagues or friends, ‘financial problems can leave you with a bitter taste afterward. People will probably try to manipulate you into loaning them money soon after learning of your inheritance. Have the courage to say NO to those seeking financial assistance from you unless helping them is inevitable. In short; granting personal loans to every Tom and Dick is probably one of the fastest ways of blowing your inheritance.
Spending without a proper plan is a simple recipe for failure. You must formulate a well-calculated plan before investing in any kind of business after receiving your inheritance. Get your priorities right before making any investment decisions lest you want to live the rest of your life in misery and regrets. It’s best to seek advice from a trustworthy financial advisor, or attorney before putting your money into any project. Remember; everyone will be trying to get a share of your new wealth by wooing you to invest in various mouth-watering business opportunities. Consulting a good financial advisor is your first step towards finding the right projects to invest in if you want to grow your inheritance through strategic investments.
Quitting your current job
Adding a few millions of dollars into your bank account can easily trigger all manner of emotions. Some people are quick to act irrationally after receiving an inheritance. Quitting your job immediately after getting an inheritance is certainly a bad call. Your new wealth should not give you a lame excuse to quit your well-paying job. Why retire early when you can simply keep your job and grow your inheritance at the same time?
Getting an inheritance can be beneficial in a million ways provided you make the right decisions.