What Would You Do If You Inherited a Fortune?

Have you ever dreamed about inheriting a fortune? Maybe a long lost Aunt who secretly made millions and stuffed it under her mattress will leave you the whole lot in her will. This is probably one of the few ways in which most of us can expect to ever have a bulging bank balance, so how would you deal with it?

Stay Calm

It would probably be easy to go a bit mad and spend huge amounts of cash without thinking about it first. A new car, a dream holiday (How about some holiday ideas, courtesy of Scottish Friendly?) and some new clothes could make a big dent in your new fortune in little time. The first step is, therefore, to stay calm. Sure, you will want to celebrate your new found status with a nice meal and maybe a few gifts but you don’t want to start digging into the fortune before it has even earned you any interest.

Invest Wisely

Of course, having a lot of money will open up a number of new investment opportunities for you as well. If you are used to having a basic bank account and maybe a small savings account then it might be frightening to discover that you are now being offered share portfolios and other types of sophisticated investment. The main point here is to avoid feeling obliged to put your money into something you aren’t completely comfortable with. It would be better to keep it safe and earning a small amount of interest until you are sure where you want to invest it. If you get this right then it could be something which makes you money for the rest of your life.

Enjoy It

One issue to think about is that it is easy to forget to enjoy being rich. You might be so worried about interest rates and investment types that you forget to appreciate the sheer pleasure of having spare money in your pocket. You won’t want to go mad and spend it all at once but you will want to enjoy the fact that you can spend more than you could before. We all know that money can’t buy you happiness but having more of it can make your life that little bit more enjoyable. A few meals in nice restaurants, thoughtful gifts for friends and a more relaxed attitude to your finances can all make you feel good. Don’t forget that being rich in itself won’t make you happy; it is how you use your wealth that does this.

Come Up with a Plan

The amount of money you inherit will determine what sort of long term plan you can come up with. For example, maybe there is enough cash there for you to consider giving up work and living off the interest. You need to be honest with yourself here and decide what level of lifestyle you are after. If you plan to live simply then maybe the interest on its own would give you enough to get by. On the other hand, if you want to live the high life then you could find that the amount in your account would soon start reducing if you were to stop working. Receiving a large sum of money is something which gives you a unique chance to change your life and find a way of living which suits you. Just make sure that you think about it before you make any decisions you might end up regretting. If you can do this then receiving a large inheritance could be something which gives you a financially secure future as well as a lot of fun.

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11 Responses to What Would You Do If You Inherited a Fortune?

  1. Pauline says:

    A real fortune I would invest most of it, maybe have fun with 10% or so, travel and enjoy for a while, then create sources of passive income with the rest, mainly real estate I guess.
    Pauline recently posted..Why going out of your way for cheap is not a good ideaMy Profile

  2. I would follow the plan outlined. At first, I would do nothing. Good decisions are never made when you are in an emotional state – regardless if that state of mind is good or bad. Then I would take 5% or so and spend it guilt-free on whatever I wanted. Then I would take the rest and save and invest it.
    Jon @ MoneySmartGuides recently posted..A Truly Scary Money MistakeMy Profile

  3. Definitely stay calm and just put in the bank in the beginning. Never make any rash decisions with money…especially when you get a big windfall. I would allot some money for fun and enjoyment, save and invest the rest. If it is a large amount, I’d probably consult with some experts.
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  4. dojo says:

    There’s no chance I’d inherit anything like this, but let’s see what I’d do if it was the case: first of all make sure the money is placed safely and NOT brag with my new money. There’s nothing worse that being hunted down by all kinds of relatives who want a ‘share’.

    So I’d probably keep my mouth shut and mind my own business.

    I’d clearly look for things to invest the money in, since I really don’t want to be back to square one after a while or even in debt.

    We’re not big spenders anyway and can actually afford a nice vacation if we wanted to (again, we don’t go to luxurious hotels or overspend). We do have a good car and an apartment. So most of the money would go into savings/investments, so that we can relax more and also secure our kid’s future.
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  5. Karen says:

    I think my chances of inheriting a fortune are as likely as me winning the lottery. Depending on how much the fortune was, I would pay off the remainder of my mortgage or pay a chunk of it off. I would also give a large amount to my parents and sister. The rest would be used for investing and travelling. There are so many places I would like to see, but the flight is so expensive to get there.
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  6. MoneyAhoy says:

    I’d invest all of it without even spending a cent of the principal!
    MoneyAhoy recently posted..Book Review – The Art of The StartMy Profile

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