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I have received an inheritance or unexpected windfall. What do I do with it?

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Question: I have received an inheritance or unexpected windfall. What do I do with it?
Answer: Receiving an unexpected sum of money or assets can certainly create a feeling of excitement, but it is important to make sure that your emotions don’t overshadow common sense. Whether you have won the lottery or inherited the money, you will be faced with some big decisions.

You will probably start thinking about all of the great ways you can spend the money or what debts to pay off, and while it is great to think about how to put the money to use, you need to begin planning ahead. There is no right or wrong answer, but the worst thing you can do is furiously squander the money away.

Consider reducing the high-interest debt you carry first, and then think about investing some money for the future. Reducing the debt will save money in unnecessary interest, and saving money will ensure that it lasts. It's fine to treat yourself and enjoy some of the money, but you don’t want to sacrifice your long-term financial goals for a few guilty pleasures.

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