What to Do When You Suddenly Receive a Large Sum — Inheritance Bonus or Lottery Win

The first and most important rule is to do nothing for 3-6 months. Park the money in a high-yield savings account and let the emotional high settle. Most windfall recipients go broke within a few years because they make major financial decisions while euphoric — buying houses, cars, "investing" in a friend's business, or simply spending without a plan.

After the cooling period, follow this order: pay off all high-interest debt, top up your emergency fund to 6 months of expenses, then invest the rest in a diversified portfolio. Do not tell everyone about the money — it changes how people treat you and invites requests you are not prepared for. Consult a fee-only financial advisor, not someone who earns commissions on what they sell you.