Johannesburg - After receiving a financial windfall, such as an inheritance or lottery winnings, it’s important to stop and think about what you want to do with your money.
“Unexpectedly receiving large amounts of money can potentially change the course of your life, only if the money is used wisely. It’s important to understand that managing a large amount of money is not easy and the first instinct for most people is to spend, especially on big ticket items such as cars, holidays or expensive jewellery," says Ester Ochse, channel head for FNB Advisory.
"While a bit of self-indulgence is acceptable, uncontrolled spending could lead to wastage. Therefore, it is important to seek help about how you can manage your money. A sudden bulge in your bank account from an inheritance, for example, is hard for most people to fathom. They spend before committing to any sensible financial decision such as investing the money towards education.”
Ochse has the following tips: