One of the things about being on holiday is catching up on some reading. A good thriller novel is brilliant, and I have just finished reading, ‘Something in the Water’ by Catherine Steadman. It had me hooked from the first page.
I won’t spoil the plot for you, but basically, a couple on their honeymoon find a bag full of money and diamonds and the decisions they make from that time on change the course of their lives forever.
This got me thinking.
What would you do if you suddenly found a $2 million windfall in your bank account - with no strings attached?
This question was also posed in a Facebook group I belong to. There were lots of comments, things like paying off the mortgage, taking family and perhaps some friends on a world trip, putting money aside for the kid’s education and working with a charity to help others. These are all worthwhile things to do with the money.
I didn’t see anyone say I wouldn't tell anyone or I would just spend it on myself (which I guess shows the caring nature of those in the group). But could you? Would you be tempted just to do just that?
If a couple of million dollars suddenly dropped in your bank account tomorrow, would you think about other options in life that may not include those nearest to you now?
Would you be tempted to leave the job you no longer enjoy? Walk away from a relationship that you are struggling with and disappear to a new, sunnier location. Or maybe you would become like Scrooge McDuck and fill your basement with money so you can 'swim’ in it!
While the windfall may not be $2 million that drops into your bank account, this is the scenario that lotto winners and those who receive an unexpected inheritance find themselves in.
If you are on your own, then it really is up to you to do whatever you want with the money. Be sensible with some, splash out and do some of the things on your bucket list. Enjoy the money without feeling guilty about it.
But what if you are in a relationship?
Is it still my money, or is it our money? And then, who is going to decide what to do with it? What if you want to be sensible and pay off the mortgage, and the other wants to take a year off to travel the world? How do you resolve this dilemma without feeling as if you are being selfish or guilty?
If you are in a relationship where you have concerns about the solidity of it, you might be very tempted to keep it separate. In other words, be guarded and hang on to it.
But if you are in a loving, happy, solid relationship, the answer to what do we do with the money will be entirely dependent on your financial situation. What I suggest you do, for a little while at least, is nothing.
Wait for the emotions of the windfall to settle down. Then let your rational brain kick in so you make some good decisions. Talk about all the options, the sensible ones, the crazy ideas, what is on your bucket list, write them all down and then rank them.
Yes, it is OK to treat yourself.
That isn’t frivolous. Nor should you feel guilty that the money has come your way, particularly if it is an inheritance. I am sure the person who left you the money didn’t give it to you to have it sit in the bank.
If you are struggling with how to manage your money (big or small) or how to talk to your partner about your money, then drop me an email or comment below, happy to help.
Lynda Moore is a Money Mentalist coach and New Zealand’s only certified New Money Story® mentor. Lynda helps you understand why you do the things you do with your money, when we all know we should spend less than we earn. You can contact her here.
7 Comments
Tell the world and see how many new friends you suddenly get!
I heard an interview with one of NZs early Powerball winners. He said He knew he'd never be able to keep it secret so he didn't try. But he split off the majority of it and hid it. Then he spent up the rest doing the things he always wished he could do. Said he suddenly had lots of new friends, and interestingly lost a few old ones. But when the designated spending pot was empty, he let people know, and went back to living his life normally. He lost the new friends and most of his old friends came back.
But generally whee money is involved, peoples nasty streak comes out. Keep it secret if you can.
In past I had read something similar online, where the suggestion was to put the money into trust account or managed funds with split between cash preservation and growth.
Set up an amount which you would like to pay yourself monthly/annually over the next few years 10/20/30 and keep doing the work you are already doing or search some work you like to earn regular/extra income stress free or start business using some percentage of windfall as capital. This way you can design your life and have money to do things you love over the course of time. And the windfall money would earn returns and you won't spend all of it in a single go.
Not sure about the advice not to put it in the bank...
I inherited some money and gave 1/3rd each to my two sons who have put it into a bank in order to wait a bit and keep saving for a house deposit. Mine is in the bank too at the moment.
Yep a few relatives called me after the passing with their health related sob stories, (which I had not been updated on up until that point). Most likely related to no news about any money heading their way. No strong hints, but its suspicious.
I didn't tell them that I didn't keep very much for myself.
NB. The NZ health system is free, but also, these people have larger freehold houses than need be.
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