A news article came out today about how a widow received $1 million in donations and insurance payouts after her husband died became broke in a year. Most people would be shocked at how somebody can spend $1 million in the course of 1 year when many don’t even have income exceeding $100k per year.
However, it is actually a very common thing that happens to people who come by large sums of money, whether be it through inheritance, striking lottery, sportsmen who suddenly get rich etc. If one is not prepared for a financial windfall, the money disappears quickly, with some even reaching a financial position that is worse than before they received the windfall. Some even go to the extent of being bankrupt.
People who suddenly receive a financial windfall usually makes bad decisions in 3 main areas.
1. Overspending
When people suddenly receive a large sum ......