In this era of economic and investment volatility, fortunes are being made -- and lost!
Whether you just won the lottery or earned a huge bonus for performing more procedures than any of your partners last year, hereâ€™s important information about what to do next.
If youâ€™re fortunate enough to come into a windfall, itâ€™s important be aware of a mental accounting mistake known in behavioral finance as the â€śhouse money effect.â€ť
After a lucky roll of the dice, gamblers fall victim to the â€śhouse money effect,â€ť thinking of winnings as a separate pile of cash that could afford to be lost, when that â€śfunny moneyâ€ť is really no different than any other assets.
Whether you received an inheritance, took an employee buyout, won a lawsuit settlement, or sold your business, home, or yacht, you donâ€™t want to make this mental accounting mistake by treating a windfall cavalierly.
Before you do anything foolish, stop; take a breath, and think strategically by creating a plan to build on the opportunity by making a strategic plan.
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