It’s always good to try to be stable when it comes to your finances. Unfortunately, stability isn’t often typical. There are always things that happen that require you to move money into or out of bank accounts, billing settlements, or purchases. So when you’re financial circumstances change on you, what can you do? What options do you have to settle things down?
To start answering these questions, first, it’s good to look at the times when these drastic shifts can occur. As a first example, if you’re in a court case and you get a settlement for or against you, your financial situation can change quickly. Secondly, if you win the lottery, suddenly you are in a new tier of existence.
And third, if you have to declare bankruptcy, a lot of your monetary options change white quickly, sometimes for the better and other times for the worse.
Court Settlements
At the end of a court case, when a court of law settles a judgment, that can have potential implications up and down your life. If you win a court settlement, you have to decide what to do with the money. If you lose a court settlement, you have to decide whether or not you want to fight against that settlement or if you can find the money that you have to pay. If you don’t have a significant savings account, it can be challenging to push back and find a way to maintain your current lifestyle.
Lottery Wins
Everyone says that they want to win the lottery. However, there are lots of studies to suggest that lottery winners can be miserable because they don’t know what to do with the money after they get it. In fact, many people who suddenly come into a lot of money as a matter of chance end up blowing it all quickly rather than investing it.
In addition, their entire social structure changes, and so it is very difficult for them to step into a new lifestyle. Because of this, it’s important for people to understand how to shift from one stage of their life to another slowly. After winning a lottery, if you don’t spend the money strategically, you may lose your money. So, make a good plan, and spend the money wisely.
Bankruptcy Options
If you get too far into debt for either business or personal reasons, you may decide to declare bankruptcy. There are pros and cons to this. If you have been struggling to maintain your lifestyle because you’ve been trying to pay off debts, declaring bankruptcy may put you back in a situation where you feel more comfortable with the amount of cash that you have.
Your credit does take a hit, but at least you won’t be totally underwater. Declaring bankruptcy is a good way to restart when it comes to business matters as well. Just because you failed with one business idea doesn’t mean you’re entirely a failure – it just means that you need a fresh start to figure out how to begin from the ground up.
