Receiving unexpected wealth can change your life forever.

Are you an athlete, entertainer, lottery winner, or someone receiving an inheritance or large settlement? Whether you find yourself in one of these groups or another, the question remains the same.

What should you do now?

Those who receive unexpected wealth may not have a plan in place to use it optimally. Strong emotions like joy, sadness, anxiety, and relief can be tied to an event like this too. These are common but can impede sound judgement. The combination of emotions and lack of a plan leads people to use their new wealth impulsively for things like removing debt, upgrading their lifestyle, rashly investing, or keeping it in the bank for a long time. Impulsive decisions like these are what we caution against.

Said another way, doing something is better than doing nothing, unless that something is worse than nothing.

Regardless of what you want to do with your newfound wealth, understanding your available options can help you make logical decisions. Choosing a course of action that works for you, rather than against you, can change your life for both right now and the future to come.