From windfall to wealth: how to make your money last

Receiving a financial windfall, whether through an inheritance, gift from family or prize winnings can fast-track major financial goals and responsibilities. However, without a clear plan, a sudden windfall can easily become a missed opportunity to building long lasting wealth. As more young people focus on financial independence and long-term wealth creation, young adults are encouraged to view a financial windfall not as spending money, but as a foundation for future financial security. Akweley Laryea, Head of Retail Banking at First National Bank shared that one of the biggest mistakes young adults make is treating a windfall as an opportunity to immediately upgrade their lifestyle. “Many young people dream of owning a home, driving a new car or travelling the world.

While a financial windfall may make these goals achievable immediately, it is important to first define your financial goals. The decisions made in the first few months can have a significant impact on future financial wellbeing,” adds Akweley as she shares financial considerations to take into account: Don’t make major financial decisions immediately: Take time to develop a structured financial plan that considers your short, medium to long term financial needs so that you avoid unnecessary spending. Seek professional advice: we encourage young people to avoid making significant financial commitments for at least six to 12 months after receiving a windfall. This provides time to seek advice, gain a full understanding of their financial needs and make decisions that support long-term wealth creation rather than short-term gratification. Set clear financial goals: a financial windfall can create significant opportunities, but managing it wisely is important. Young adults should focus on setting clear…