An inheritance is sometimes called a “legacy,” and receiving one can be a blessing—or a curse. On the one hand, there is the temptation to think like a lottery winner and imagine a life of easy indulgence. On the other, there is the instinct to do the “right thing” by paying off debts, investing wisely, and saving for the future. The fact that many lottery winners ultimately file for bankruptcy should be sufficiently instructive as to which course you should take.
Whether an inheritance is large or small, the best approach is to avoid extravagance and opt for discipline. Without careful and deliberate planning, a lifetime’s worth of accumulated wealth could be squandered in a matter of months. The following steps will help put you on the right path.