What to do When you Inherit a lot of Money

So, you’ve suddenly come into a large sum of money. Maybe it was from a long-lost uncle, a generous grandparent, or just sheer fate, congratulations! But here comes the big question: What on earth do you do with it? Should you invest, splurge, or stash it under your mattress? The ideas are plenty. 

It’s okay to treat yourself (within reason)

First things first–let’s address the guilt. Many people feel obligated to be ultra-responsible with inherited money, but here’s a little secret: it’s perfectly fine to set some aside for fun. You can go on your dream vacation (if not now then when?), buy a shiny new car, or have a little fun at an online casino. Nowadays, the fun that doesn’t have to end could be found at casinos not on Gamstop. They’re very popular, as playing games is not restricted by UK self-exclusion programs. Because of that, they often have higher bonuses, fewer restrictions, and a broader range of games (Source: casinos-not-on-gamstop.com).

Still, enjoying doesn’t mean going on a spending spree that would make a lottery winner blush. It’s more about wisely allocating a percentage for pure enjoyment that can keep you motivated while handling the more serious aspects of wealth. In fact, experiences like travel or a luxurious treat can make the inheritance feel more real, turning it into something more than just numbers in an account.

Get professional advice (seriously, don’t wing it)

Handling a significant sum of money without professional guidance is like attempting brain surgery after watching a YouTube tutorial–it’s a risky business, mildly speaking. A financial advisor can help you through taxes, investments, and future-proofing your wealth. 

Not all inheritance is tax-free, and depending on where you live, you might owe the government a slice of your newfound pie. A pro can help minimize those deductions and make sure you’re making smart moves.

Also, legal guidance is important if your inheritance comes with stipulations, trusts, or other complexities. You don’t want to accidentally sign away half your fortune because you misread a clause in the fine print.

Invest for the future (because money can grow while you sleep)

It’s okay to stash all your money in a savings account. Investing, on the other hand, can help your wealth grow over time. Stocks, real estate, or even starting your own business are all ways to make that inheritance work for you.

If the stock market feels intimidating, think about index funds, which track market performances without requiring daily trading expertise. Real estate is another solid option. You can buy a rental property for passive income or a vacation home that appreciates over time.

Pay off debts (future you will thank you)

Before you go fully Gatsby with your newfound riches, take a look at any debts you may have. Credit card balances, mortgages, and student loans can take over your financial health. Make sure to pay these off first and save yourself from financial headaches in the future.

Even if you don’t want to wipe out all your debt immediately, reducing high-interest loans should be a priority. The less money you’re throwing at interest, the more you’ll have for future investments. 

Create an emergency fund (because life is unpredictable)

An inheritance can make you feel invincible, but life loves throwing lemons. Setting aside a chunk of your money for emergencies is a smart move. 

A solid rule of thumb is to have at least six months’ worth of living expenses in an easily accessible account. This way, if unexpected expenses arise, like job loss, medical emergencies, or a sudden urge to move to the countryside, you’ll be financially prepared. 

Donate or give back (feel-good money moves)

Using some of your inheritance to support causes you care about can be incredibly fulfilling. It could be a charity, setting up a scholarship fund, or a local organization. Giving back makes a lasting impact, plus it’s a great way to honor the person who left you the inheritance by continuing their legacy in a meaningful way. 

Even if full-on philanthropy isn’t your thing, small acts of generosity, such as helping out a struggling friend, supporting a local business, or surprising a family member with a gift, can make you feel great and see your inheritance in a new rewarding light. 

Make a budget (yes, even rich people have budgets)

Budgeting isn’t only for people who try to stretch their last 20 dollars until payday. Having a plan makes sure your money doesn’t disappear faster than expected. You can set up different categories (fun, investments, essentials, and savings) to balance responsibility with enjoyment.

Apps like Mint or YNAB (You Need a Budget) can help with automate tracking, so you can stay on top of things without feeling overwhelmed. Of course, there are always professionals you can ask for help or advice.

Avoid lifestyle inflation (don’t burn through it all)

It’s certainly tempting to start living like royalty when you inherit money, but the fastest way to go broke is by assuming your newfound wealth is unlimited. Lifestyle inflation (where your expenses rise as your income does) can be a silent killer of fortunes.

You don’t have to upgrade every aspect of your life at once. You can make small, thoughtful changes. Maybe you upgrade your home, but do you really need three sports cars? A luxurious vacation? Absolutely. A new wardrobe? Sure. but keep it balanced so your inheritance lasts for years, not months.

Protect yourself from scams (because wealth attracts sharks)

Suddenly coming into money can attract all sorts of characters, from long-lost relatives to shady investment opportunities. Scammers love targeting people who’ve recently inherited wealth. They like to play on emotions and siphon off funds before you even realize it. Just in case, be skeptical of unsolicited financial advice, high-pressure sales tactics, or too-good-to-be-true investment schemes.

A good rule? If someone is promising guaranteed high returns with zero risk, run the other way. Try to stick to trusted professionals, double-check credentials, and never make rushed financial decisions. A little caution now can save you from expensive regret later. 

Make it last and enjoy the ride

Inheriting a lot of money is both an opportunity and a responsibility. While treating yourself is essential, smart financial planning ensures your wealth can benefit you for a lifetime. Seek professional advice, invest wisely, clear debts, and avoid reckless spending. And yes, enjoy the perks—whether that’s traveling, splurging a little, or even testing your luck at a non-GamStop casino. Because wealth isn’t just about numbers in an account—it’s about making life better, for both present you and future you.