Basic money management isn’t too difficult once you get the hang of the basics. You learn how to budget, learn how credit cards work, figure out the best system for things like school loans, car loans, and home mortgages. You have your bills on autopay, you have a consistent job with a consistent income, and you’re generally responsible enough that there aren’t going to be any surprises that pop up in your overall financial picture. But then again, what happens when your run into financial situations that really are surprising, such as during lawsuits and legal issues, a windfall of good luck, or perhaps an inheritance comes into the picture?
Lawsuits and Legal Issues
Lawsuits can really wreak havoc on your carefully planned financial management system. Perhaps you had to hire a lawyer for an automobile accident suit. Maybe there was some type of medical malpractice that you or a family member was a part of. It can be very difficult to figure out where money comes from and goes to, and especially if you have a business account, it’s very important that you find someone who knows how to put the right money in the right places so you don’t have to worry about personal or business bankruptcy.
Good luck is another funny financial matter. What if you have a great night gambling and come home with an extra 10 grand? What if you win the lottery and suddenly you have millions of dollars coming in? These may seem like extreme situations, but they are important to consider when it comes to financial management, because state laws about income like that are very specific and then can sneak up on you if you aren’t paying attention during your extended vacation that you decide to take. Take tips from others who have won big! Taxes are important to handle before you put any of that money anywhere else, so hire a specialist immediately if you don’t consider yourself an expert.
If you get an inheritance from a family member’s will, or have another situation where you receive a financial ‘gift’, be sure to check your state inheritance laws as soon as possible. There are many, many cases where people don’t take care of tax matters right away, thinking that they just get that money, because it’s theirs, right? Unfortunately, those particular financial matters are often far more complicated, and depending on the amount you receive, there are different tiers of laws that you have to deal with.
The point is, it’s important for you to understand basic money management on a day-to-day basis, but you should also have a basic plan when it comes to unusual situations. Whether this means that you have a specialist on hand to take care of them when it happens, or you take on this process yourself, having the information quickly can make a big difference in your overall process.