What would you do if you received a sudden financial windfall, like winning the lottery, getting a big inheritance or coming into an unexpected pile of cash?
Unfortunately, many windfall recipients squander their money, going on reckless spending sprees or mismanaging their finances. Jennifer E*. of California is determined not to let that happen to her. She just won $100,000 from Capital One in the bank’s Big Payoff Sweepstakes.
I partnered with Capital One to provide financial literacy education to participants in the Sweepstakes, as well as to offer some one-on-one coaching to the winner of the Big Payoff. So I had an opportunity to coach Jennifer and give her some tips on what to do with her winnings, based on her unique circumstances.
To her credit, Jennifer also consulted her accountant — which is always a wise move when a lot of money falls into your lap. Based on all the guidance she’s received thus far, Jennifer plans to:
- set aside money to pay the taxes on her winnings;
- pay off her credit card debt;
- increase her savings;
- and perhaps use some of her windfall as a down payment on new home
Smart strategies all around, I’d say. Read the rest of Lynnette’s article – Six Tips on How to Avoid Squandering a Financial Windfall
Read: The Money Coach’s Guide To Your First Million – Now in paperback and Kindle edition