Day 3: Why solid financial planning is still important

Even if you inherit a large sum of money, you should plan well and keep an eye on your expenses. The name of the game: Don’t get careless! When it comes to finances, it doesn’t matter if you’re working with 1000 euros a month or a million – you still have to manage your money well and plan your next steps deliberately.

Inheritance as an opportunity

Vitamin is on a mission to strengthen women’s financial literacy. If you feel that you lack financial knowledge and are not successful in financial planning, don’t worry…you’re not alone. Even if you’re financially illiterate, as are most people, it’s not your fault. The fact is that most of us were never taught how to manage money. A lot of what you can do with money is just a bad idea, and we are literally programmed to make bad money decisions. Investing all your savings in cryptocurrency or a single company, for example. The good news is, though, that your inheritance is a wonderful opportunity to change your life. So take the time to learn something about investing or to find someone who will help you with it. It’s on you to maintain control of your money and to have a clear, solid financial plan for your inheritance. If you plan well and have a clear conception of what’s possible, you won’t make any rash decisions.

Growing your wealth

An example: We know from experience that many women who inherit a large sum would leave their jobs. For some people, this would be the dream. If you are one of them, please reconsider if this really makes sense. How much money would you need to get by for a year? Based on that, you could calculate how many years you could live on your inheritance. Many questions then arise that might make you rethink your decision and head instead in the direction of investing. This would maximize your wealth, bring in a steady income, and give you a strong financial future.

Who should manage your money?

If you’re not sure how best to manage your inheritance, if this whole thing isn’t enjoyable to you, if it’s very challenging and overwhelming for you, seek support and get advice from a good financial advisor. They can help you take stock of your current financial situation and set goals for the future.

Alternatively, you can handle it yourself. It does take somewhat more time and energy, but if you’re up for it and want to learn the ins and outs, you can do it.

If you decide to manage your money yourself, you’ll need to be truly prepared to take responsibility for it. One way to get a good handle on your expenses is to record all your expenditures in detail for an entire month. After 30 days, if you get the impression that you’re spending unnecessarily in a particular area, that’s where you should make some cuts. That’s especially true if your new fortune is making you spend more than you otherwise normally would. After all, the ultimate goal is to maximize your inheritance…not to watch it waste away more and more each month. But we’re sure that’s not how you’ll fare after you’ve taken some courses here at Vitamin. You already have financial savvy!