When you come into a financial windfall, whether through inheritance, lottery winnings, or some other means, it can be an exciting time. However, it also brings responsibilities and important decisions. The following tips can help you navigate this new financial freedom wisely.

First, don’t make any rash decisions. Take time to let the reality of your newfound money sink in. Pay off any high-interest debts you may have, like credit cards. This can give you a fresh start without interest charges eating into your windfall.

Next, consider your options carefully. You’ll need to determine if the money should be invested, saved, or used to make a major purchase. Seek financial advice from a professional to explore investing and saving options matched to your financial goals. They can also help ensure your money is properly allocated for the best returns.

Speak to a tax professional as well to understand any tax implications. Some windfalls like lottery winnings are taxed heavily. You’ll want to set enough aside to pay any taxes due to avoid issues with the IRS down the road.

Be very wary of sharing the news of your financial windfall with others. Unfortunately, coming into money can bring out people and scams targeting you. Don’t provide details about your finances on social media or elsewhere. Only share the news with close, trusted friends and family.

Think about your long-term financial goals and priorities. Do you want to pay for your children’s college education? Take a dream vacation? Retire early? Your new money can help make these goals a reality if managed properly.

Consider consulting with an estate planner. They can help you create necessary legal documents like a will to protect your assets. An estate plan is important for passing on your wealth to heirs and avoiding issues like probate.

Be prepared to say “no” to requests for money from others. Unfortunately, coming into a financial windfall means you may face requests from charities, friends, family members and even strangers. Don’t feel obligated to give money to anyone unless you want to.

Enjoy your new financial freedom but do so responsibly. While it’s tempting to go on an extravagant spending spree, that approach rarely ends well. Continue living within a budget and make thoughtful purchasing decisions. Your financial future will thank you.

Coming into a financial windfall is a life-changing event. Following the tips above can help you manage your new money wisely for years to come. With prudent planning and decision making, you can achieve great things and find greater financial security and independence.