Sudden Wealth Syndrome - SWS
Seems everyone is aware of SWS without really being aware its a thing! One example is the lottery winner who typically doesn't have much wealth then rockets into another 'class' or into the super wealthy realm. Did you know it could apply to those in the Crypto realm too?
Do you have it? SWS is you come into a large amount of wealth in a short period of time while not having the financial ability to keep and maintain that new found wealth! Examples, Inheritance, Lottery(Lotto) winnings, Massive signing bonus,
Do you have a plan to deal with? How detailed is your plan? or does it just include blowing up Social media with your new found wealth? Not much of a plan if you ask me.
Why is this such an issue? Here in the USA, there is no financial education. No foundation of how to treat money, nor how to grow money. I assume all other countries this is the same!
Sound financial opinion(s) on how to handle...
- Don't tell anyone of your new capital,
- Do NOT make any large financial decisions for 6-months (yep that Ferrari/Plane/Yacht will have to wait).
- Work up details on how you will put a portion of that capital to work (low-risk, medium risk, and a portion into high risk) again its about keeping what is yours.
- Set goals for spending and growing money
- Be prepared for all types of people to come out of the woodwork when they learn of your new wealth. They will come with cleverly crafted stories and schemes for your wealth, which they lust after!
- Don't go around flashing money - i.e. Bottle service at the club where you could barely afford PBR. Less Flash, more class
Summary - BEWARE: do not squander your new found fortune as it might not be happen a second time. You can do this since you earned it!
