If you want to know what to do with a large sum of money, this is definitely the right article to read.

It reveals a lot of tips to help you know exactly how and what to do with a large sum of money, to make the future better for you!



Wouldn’t it be nice if you found a magical lamp and you are allowed to make three wishes?

Perhaps your wishes would be for a new car, a new house, a dream vacation, etc.

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The list goes on and on.

Now the question remains what to do with that money?

Of course, there are no magical lamps but what would you do if one of those wishes became real and you had a large amount of money?

What would you do with it?

For some of us this may be a reality through a bonus from work, we may have been the recipient of an inheritance, or perhaps we just saved up and we have accumulated our goal of a large amount of money.


Personal Story

I recently took the 100 envelope challenge for saving money and stayed on the course for about a month.

After one month I had accumulated $1,600.

The thought struck me that I was saving this money and earning half a percent on the principle when in reality I was spending 15% on an outstanding credit card.

Consequently, I took that $1,600 and paid off the balance of a credit card, and save myself some extra money in the process by paying less interest.


20 Tips to Help You Know What to Do With a Large Sum of Money


1. How Much Is a Large Amount?

When discussing a large amount of money, we can talk in terms of amounts and what would be deemed as large for some and insignificant to others.

When talking about what to do with a large sum of money, it is best to approach this hypothetical question in terms of our attitude.

A large amount of money is not about how much but how would handle any money that is a windfall that we weren’t expecting.

This hypothetical question speaks to our respect, thinking about money and how we handle this commodity.


2. Think Before Acting

All right, so you’ve got a large sum of money.

What is the first thing that you want to do?

It would seem that the first thing that we would want to do is not act impulsively or compulsively.

It would be best to not make any rash decisions but to think through all of the listed options of how you would handle this type of windfall.


3.  Assess Your Financial Situation

By doing nothing as your first step, you would then take inventory of your financial situation.

That inventory would include where you are present with your finances and what you hope to accomplish in the future or what plans have already been started and are being worked towards.


4. Keep It to Yourself

The next important action step is to remain quiet about your sudden windfall or monies that you have received unexpectedly.

Unfortunately, when there is a large amount of money that comes into one’s possession, there is an equally large number of requests that come from family, friends, and individuals that we haven’t heard from in a long time.

If for example, you have won some money through a lottery or an inheritance, it is best to keep this information to yourself so that you can strategize on what you want to do with that large amount of money rather than be bombarded with requests.


5. Seek Financial Advice

Some individuals when they have come into a significant amount of money seek financial advice from other professional financial advisors.

This is because there may be tax liabilities associated with this amount or other considerations that need to be taken into account.

Therefore, it is always prudent; whatever situation we may find ourselves in, to seek advice from those who may be more knowledgeable about certain issues.


6. Pay Off Debt 

A great strategy when one has come into a significant amount of money is to pay off any of their debt.

If they are in debt there, most likely, are associated interest charges with that debt balance.

To pay off one’s indebtedness is a good way of utilizing this surplus money and is a good investment as well in paying off any interest associated with the carrying of debt.


7. Investment

An important consideration with any surplus money is how to invest that money.

In other words, you want to make that money work for you and help you to realize some return on that money to help secure your future.


8. Seed an Emergency Fund 

Another good idea to utilize any surplus money is to seed an emergency fund.

It’s not every day that you will be receiving surplus money.

Events in life happen that can challenge us financially.

It is important to start or feed a nest egg that has already been established.

This nesting will help carry you through any lean times financially that may be in your future.


9. Buy Property

Another good investment that would be a good vehicle to place a large amount of money in is to purchase the property.

Property is a time-tested investment vehicle that whether it’s developed or undeveloped will help to return a good investment through the purchase of land.


10. Donate 

When we receive a surplus amount of money, it is important to be grateful

Most likely, this amount of money that may come in your direction was unanticipated and is, therefore, a blessing that should be received with a grateful heart.

Therefore, in response, an individual should gratefully consider helping out others as well and possibly make a donation to a charitable cause to help out others.


What to Do With a Large Sum of Money


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11. Tax Implications 

As previously alluded to, a significant amount of money coming into your unexpected life might propel you into a higher tax bracket.

Consequently, a higher tax bracket means that you will be paying more taxes and keeping less of your windfall.

Therefore, it is important to discuss the situation with a trusted tax advisor to find the best ways to legally shelter your windfall as much as possible.


12. Update Your Will 

If a substantial amount of money has come in your direction, it is also important to make sure that you modify your will.

This can be done by consulting with an attorney who specializes in wills and estates and if you already have a will, a codicil can be added.

Your wishes will indicate how you wish for any of that money to be part of your legacy to your family or a charitable cause.


13. Be Selfish 

Don’t forget about yourself.

If you have received a significant amount of money, it is okay to be selfish because you are also thinking of others and your future.

In the present moment, it is okay to consider a vacation, purchase of some sort, etc.

Certainly, any purchases made would be best accomplished in keeping with your current lifestyle and not buying something to reflect what you are not.

An example would be a flashy sports car when in fact that does not suit your personality.


14. Save for Retirement 

Another solid consideration is to think about your future.

You should consider monies for your retirement and any significant percentage of that large amount of money that you received should be set away set aside in a good investment vehicle that will help toward your retirement years.

A sad fact is that many individuals who suddenly receive a large amount of money are unaware or do not have the tools or perspective on how to handle their sudden wealth.

Often, in roughly 3 to 5 years, they have spent their windfall and often have to declare bankruptcy.


15. House Remodeling 

If you own home another good investment would be to reinvest money back into that home.

This can be done by remodeling your house in certain areas that would be considered a good investment and a good return if and when you chose to sell that home.

For example, a remodeled kitchen or bathroom is always a good return on one’s money.


16. Education Fund for Children 

If there are children in the household, investing in their future is always a good plan of action.

With any unanticipated large amounts of money that you receive you may wish to possibly seed their education fund or even perhaps help the education of your grandchildren.

This would not only be a good investment but would also provide a strong legacy of your love and care for your family.


17. Time 

The other possibility is if you came into a large sum of money would you be tempted to quit your day job?

And if you did quit your day job, what would you do with your time?

Would you volunteer?

Would you lounge around the house?

Therefore, the question to ask yourself would be if you did come into a significant amount of money would it adjust your lifestyle, your occupation, your time, etc. and if so what would you do?


18. Splurge on a Dream 

Many of us have dreams that we would like to work towards and enjoy as a goal in life.

The unfortunate reality of life is that sometimes our dreams get interrupted because of devastating things that can happen in our lives.

Perhaps a dream trip on a railroad across the Canadian Rockies has been derailed because a loved one has been stricken with Alzheimer’s or dementia.

Or perhaps a cruise of a lifetime has been shipwrecked because there was a devastating loss of a loved one or family member.

If the opportunity arises and you have the resources through a large amount of money, it is best to “go for it” while you can.


19. Start a Business 

If you have ever thought about starting a business but never really had the investment monies to do so, then this just may be the primary opportunity to make that happen.

A large amount of money can help to provide significant resources for a startup business and would help to ensure the success of that business over the period needed to solidify the business in the community.


20. Start a Foundation 

A significant amount of money can make a huge difference in the lives of many people.

A possibility of philanthropically utilizing a large amount of money is by establishing a foundation to help others.

The foundation could be set up with this extra money and the interest going to the provision of grants for individuals.

An example would be granting monies to individuals who may be caretakers for a loved one and have had to quit their job to help that loved one.

Or helping people to get back on their feet after a devastating loss and small grants can be given to help those individuals to help them return to the mainstream of society.

Check out the following interesting money articles for more tips:


What to Do With a Large Sum of Money FAQs


What Is Considered a Large Amount of Money?

A large amount of money could be a different amount to different people.

For example, if an individual or family is eking out an existence, a windfall or a large amount of money could be $500 or above.

It’s just an amount of money that is out of the ordinary for this family and would give the impression of being a significant amount.


What Not to Do With a Large Amount of Money?

One of the suggestions of what not to do if you receive a large amount of money is to buy impulsively.

By this, it is meant by utilizing the money to buy things or luxury items that are not part of who you are or that you would not have bought if you didn’t have the money.

Examples of those types of things could be expensive jewelry, fancy sports cars, etc.



Wouldn’t it be nice to come into a large sum of money?

Our minds race at the very thought of having a significant amount of money and doing what we will with it.

The reality is, however, that whether we have a large amount of money or a small amount of money, the bottom line is what you do with it is the same thing or actions that you are taking now with your current financial situation.

It is important to remember that even with the money that you have these same options that are available to you with a great quantity of money are the same options that are available to you now with a smaller amount of money.

The actions you take on your money are the same whether on a larger or smaller scale.

Enjoy your money and enjoy your life.

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Apart from being a seasoned Personal Finance expert who has written for top publications around the world, I bring significant personal financial experience. Long story short... through bad financial choices... I found myself $100,000 plus in debt. I was able to dissolve this indebtedness and regain financial solvency. This financial turn around was accomplished through reading, studying and implementing a financial plan. My financial plan included paying down my debt through budgeting, being cognizant of where my financial resources were being spent, changing my attitude about money and understanding the binding chains of the improper use of credit. Today, and for 10 years, I have been debt free and have invested wisely to enjoy my current retirement. This is allowing me to write to help others make, save and grow money wisely!