Let’s face it, everyone would love this problem because in the list of problems this one seems relatively small and like a problem that almost everyone would really love to have.  Nevertheless, it does bring about some problems that are not necessarily overwhelming as long as you consider some basic principals when you first receive the money. 

First, realize that the windfall can come from a tax return, winning the lottery, an inheritance, bonus at work or even a prize from a contest.  Regardless of the source, there is likely to be a tax bill owed on the money unless you have received the windfall from a tax refund.  Because of this potential tax bill your first task with your windfall should be seeking some advice from a knowledgeable accountant or tax professional who can help you compute exactly how much you will owe in taxes, and when that money will be due. 

Once you know how much your tax bill will be and when that bill will be due set the money aside to cover it.  Do not spend the money and pay it back later, this could be a huge mistake that can end in a huge fine of thousands of dollars plus even the potential of jail time when the IRS wants their money.  Never borrow the money from the funds set aside to cover taxes; it is not worth the risk.

Another valuable piece of advice is to take the check to the bank immediately.  You want to make sure it is deposited and cleared before you actually start spending it.  This gives plenty of time for any holds that your bank may want to place on the large amount as well which is highly likely depending upon the exact source of the funds.  If you do not take the check immediately to the bank you could run into a problem of funds taking a long time to clear, or worse yet losing the check.  Stopping at the bank should be your first stop, followed by a stop at an accountant.

Other valuable advice is to keep quiet about your windfall.  There is no reason to be making promises to buy people things.  There are several reasons for this, one it should be a surprise that you decide to give not something you are pressured into doing.  Second, if you make a promise for a very expensive gift or loan then you could end up being sued for breach of contract!  This is not something that is high on anyone’s list of favorite activities but can occur if you are not careful about how you handle things.  Instead, keep quiet and just spring surprises if you wish.  Moreover, added benefit to staying quiet is that if your finances suddenly change you are not left feeling guilty for backing out of a gift.

You should also look into ensuring that you search around carefully if you are looking for an investment option.  While there are several options available to you, you should leave your money in a savings account or at least a checking account until you decide what to do with it.  Never make rash decisions, however you should quickly move the bulk of your money to an insured account that has the highest interest rate you can possibly find.  This will allow your money to work harder while you still decide exactly what you want to do with it ultimately. 

As you can see, with some proper planning and research it is possible to ease the problems that accompany large amounts of money.  There is no reason that the money should dominate your life, but rather should be a rather enjoyable part of your life that you are glad occurred.