Financial Planning for Sudden Wealth
“While sudden wealth can be life-changing, for some it can cause anxiety, indecision, and fear in those who don’t surround themselves with the right people and develop a strategy.”
There’s gradual money and there’s sudden wealth. Most of us are used to gradual money—earning an income and building a nest egg over time. It’s a slow and steady process. As our net worth increases over the years, we adapt and slowly become more financially sophisticated. It’s like riding a smooth elevator—you’re going up, but you hardly feel it.
Then there’s sudden wealth. It’s like being on the ground floor of a 60-story building and rocketing to the penthouse suite in seconds. Sudden wealth means getting more money than you’re used to being responsible for, getting it all at once, and often feeling pushed outside of your normal financial comfort zone. Although you’re the same person you were the day before you received it, you are quickly thrust into a new and often uncomfortable situation.