Managing Your Inheritance

Tips to help you use the money responsibly.

- Vincent Phahlane

WHEN a loved one dies, they may leave behind a large amount of money for you. Coming into an inheritance of any size can mean a considerable change to your bank account and may create the urge to splurge. While there are many things you can do with your inheritance, it can be difficult to determine how best to manage your money. We have heard of stories of people who have wasted their inheritance, leaving their relatives turning in their graves.

DON’T GET TOO EXCITED

Akhona Monakali, an accountant, says it is important to have a plan in place before you spend the money.

“If you come into a large inheritance, it can be tempting to share the news with friends and extended family. While your prosperity is exciting, it can also mean people will be eager to have you invest in their ‘good ideas’ or will want you to spend your money in a way that doesn’t make sense for you and your family,” she says.