Some of you may be in a situation that you inherit some money. Inherited money can be a blessing or a curse depending on how YOU deal with it. Take a look at these tips they may help you in the future. Number 5 can be huge since people with money tend to get a lot of new friends and relatives. 5 Things Not to Do If You Inherit Money Getting an inheritance can be a financial opportunity but if youre not careful, it can easily be wasted. It turns out, heirs often end up spending all of the money and getting accustomed to a more lavish lifestyle than they can keep up with. Figuring out what to do with an inheritance without squandering it can be tricky, but its important to have a plan. If you inherit money, avoid these common mistakes and consider the suggested strategies for avoiding them. 1. Spend Without Assessing Its important to first take an honest look at your current financial situation. Acting without knowing where you stand can lead to big trouble. Tackle any debt you have, starting with the highest-interest loans 3. Ignoring Expert Advice Even if you are usually responsible and have a pretty firm grasp on your finances, you can likely benefit from the advice of a qualified accountant, attorney and/or other financial experts once you receive an inheritance 3. Being Unrealistic Its a good idea to avoid lifestyle inflation — the large influx of cash may not last as long as you think. Before you make rash decisions, adjust your expectations and figure out how every purchase will affect your future 4. Giving Up Other Income Sources Unless you had exceedingly wealthy relatives, it probably isnt smart to leave your job just because you received an inheritance. At the very least, wait a little bit so you have time to figure out how the money can best be used to improve your life (maybe you want to use it as a down payment to buy a house or start a business). Its important to remember that taxes will likely cut into the money you actually receive. Even if you decide leaving your job is the right thing for you, its a good idea to give it some thought first 5. Paying for Friendship Sharing with others is usually a nice gesture, but giving all your inheritance to your entourage can end up hurting you. Its a good idea to establish boundaries with family and friends so they do not suddenly show up asking for their fair share. This is your money and you should decide how you want to deal with it. Help others if you want but do not be pressured into giving more than you can afford
Posted on: Wed, 07 Jan 2015 22:12:41 +0000
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