“All you need is the plan, the road map, and the courage to press on to your destination.” - Earl Nightingale
Maintaining wealth is a challenging task under the best of circumstances, but it can be especially challenging after a windfall. Whether you have a company just sold or went public, it is important to take steps to protect your finances and make sure that your new-found riches do not disappear as quickly as they arrived. Here are four tips for maintaining your wealth after a windfall.
When it comes to spending money, it is important to take a step back and think about what you need and want. When you see something new that you want, it can be easy to spend too much money on it without realizing it. Pause and brainstorm what you need before making exorbitant purchases. This will assist you in remaining under budget while also guaranteeing that your purchases are items that you desire or need. The next time you want to impulsively spend, hold off for a moment to think it through--you will be happy you made the more mindful choice.
With investing, there are several things to keep in mind, but stability and growth should be at the top of your list. You want to ensure that your finances are going to be stable when you need them. Achieving stability in your investment portfolio can be done in diverse ways. You could buy stocks that have traditionally been known for yielding dividend income. These stocks typically do not see as much price fluctuation and offer the potential of capital appreciation over time. Another method would be to put money into mutual funds which pool together distinct types of investments. This is designed to help reduce the volatility of your portfolio over time, while still allowing room for growth on your original investment sum. When you invest your money, aim for stability and growth instead of other factors.
Anyone who has ever received a windfall of cash knows the feeling of excitement that comes with it. However, that feeling quickly wears off when the reality sets in that the money needs to last. Budgeting is one of the best ways to make sure you do not overspend. That may sound like boring advice, but it is sound advice, nonetheless. By creating a budget, you will be able to see exactly where your money is going and adjust accordingly. And while it may be tempting to splurge after receiving the proceeds of your company sale, remember that it is important to stick to your budget to keep your finances healthy overall.
Financial planning is a necessary step that anyone should consider after receiving any large amount of money. By carving out some time to analyze your present finances and set future goals, you can help safeguard yourself and those you care about from potential money troubles later down the road. It is important to take a close look at your current income and expenses, so you can set some achievable goals for the future. If you are not sure where to begin, there are plenty of financial advisers who can help create a plan tailored specifically for you. By planning, you will be better equipped to manage whatever unexpected challenges come up in life.
Keep in mind, if you want to prosper with money, it is crucial to take your time and think about what you are doing. Do not let the original exhilaration of having extra cash fade away - stay faithful to your budget and remember why you are saving in the first instance. And lastly, do not forget that wealth is not everything. Be giving with your time and assets and concentrate on creating a life that brings you fulfillment. With these things at the forefront of your mind, you will be well on your way to maintaining financial success!
“Success is the progressive realization of a worthy goal or ideal.” - Earl Nightingale
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Peter T. Waldron is a registered representative of Lincoln Financial Advisors Corp. Securities offered through Lincoln Financial Advisors Corp., a broker-dealer (member SIPC). Investment advisory services offered through Sagemark Consulting, a division of Lincoln Financial Advisors Corp., a registered investment advisor. Insurance offered through Lincoln Marketing and Insurance Agency, LLC and Lincoln Associates Insurance Agency, Inc. and other fine companies. Waldron Partners is not an affiliate of Lincoln Financial Advisors. Lincoln Financial Advisors Corp. and its representatives do not provide legal or tax advice. You may want to consult a legal or tax advisor regarding any legal or tax information as it relates to your personal circumstances.