Manna can refer to unexpected financial windfalls, but sudden wealth can also bring complications such as taxes, poor spending decisions, and strained relationships. Financial advisors suggest investing in retirement or paying off debts. Sound decision-making skills are necessary to handle sudden wealth.
Manna has numerous definitions. These range from a tree falling in a sudden storm, to fruit that has fallen off a tree, or a gust of wind from shore that suddenly gives a vessel more room to sail and greater speed. In finance, windfalls are tied to an unexpected and usually large, sudden inheritance or otherwise acquired cash. Winning the lottery, getting a huge year-end bonus, getting back taxes you didn’t expect, or any number of other things can result in a windfall.
There are surely many people who would love a stroke of luck and would see that elusive “ship coming” as the end of all problems. While it’s recognized that suddenly having money to take care of financial problems is perhaps a blessing, the Bible may not be wrong when it says that money is also a curse. It turns out that there are many people who have previously led lifestyles that are no good when they get a windfall. The bigger the gain, the more complicated things can get.
First, there’s the question of taxes. A lottery winner of a large sum of money may need to pay out many. People who have normally done their own taxes before often have to hire accountants and financial advisers to navigate through the tax nightmares that come with suddenly becoming a millionaire. There’s also a consideration of how to spend a huge sudden influx of money.
Some studies have shown that people who have won “moderate” to large sums in lotteries have a tendency to spend that money quickly, since they are not used to handling large amounts of money. They can quickly become greedy, fall victim to scam artists, or simply make poor decisions about the disposition of their funds. Then there are the relatives, friends, and many people who aren’t friends who may have sudden expectations of being entitled to some of your windfall. Such expectations can cause a person to spend faster or can lead to strained relationships.
Financial advisors suggest that you look at any contingencies, big or small, as a potential to invest or secure some of this money. If you get a big, unexpected cash “drop,” use a good chunk of it for retirement savings accounts or use it to start an IRA or money market account. This may not be glamorous, but it can contribute greatly to your comfort later on.
If you have pressing debts, consider paying them off so you can start financially fresh. Depending on the amount, save some for a gift, but use most of the suddenly acquired funds to get yourself out of debt and plan for retirement or your children’s education (even if you don’t currently have any). Experts differ on what percentage of suddenly acquired funds should be invested and where they should be invested, but this percentage often depends on how much money is needed for debt settlement.
It’s okay to take some time to make decisions about how to spend an unexpected supply of cash. In fact it is the prudent thing to do. But the lure of quick cash and the temptation to purchase luxury items that you may later wish you didn’t have is often hard to resist.
While people may be envied for receiving a windfall, and we admit this is perhaps an enviable position, it is also one that can dramatically change lives, for better or for worse, and requires conscientious thinking and sound decision-making skills.
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