(Wealth management consultant, Ridhi FinServ)
Wealth doesn’t always arrive gradually. Sometimes, it lands in a single stroke — a land sale, a voluntary retirement scheme (VRS) package, an inheritance, or a even lottery jackpot.
For a while, life feels prosperous and secure. But a few months or years later, a quieter story often unfolds — the money is gone, the house remains half-built, relationships are strained, and there’s little left to show for what once felt like a life-changing fortune.
This is a pattern seen repeatedly, particularly in societies like ours where money decisions are often emotional, unplanned and driven by social pressure.
When a large sum lands suddenly, people tend to switch from planning to spending. What begins as a blessing can easily spiral into:
--Loans given to relatives that are never repaid
--A new luxury car, “because now we can afford it”
--Construction of a large house with no real budget
--“Investments” made on tips, unverified businesses or get-rich-quick schemes
--No insurance, no safety net, no long-term strategy
In short, money without direction becomes fuel for impulsive decisions.
The deep-rooted lottery culture in India has made overnight riches a familiar dream. But reality after the win is often sobering — even tragic. Globally, nearly 70 percent of lottery winners lose their entire fortune within five years, and India is no exception.
Winning is luck. Keeping it requires planning.
If sudden wealth comes your way, the best immediate step is to do nothing. Let the money sit safely in a savings account or a liquid fund. Give yourself time to calm the excitement and think clearly.
A “cooling period” helps prevent impulsive mistakes. No major financial decision should be made in the first few weeks, because money can easily cloud judgment and create false confidence.
The smartest way to manage sudden wealth is through structure, not emotion. Break it down methodically:
Emergency fund: Keep 6–12 months’ expenses aside
Insurance: Ensure adequate health and term life coverage
Low-risk debt options: For stability and preservation of capital
Medium-risk investments: For long-term goals and growth
Lifestyle expenses: Enjoy a portion, but within reason
This balance ensures that prosperity endures rather than disappears.
Society celebrates winners but stays silent when fortunes vanish. Behind the silence are countless stories — families split after inheritances, land deals that ended in debt, sudden profits lost in risky ventures, and relationships broken over unpaid loans.
These stories rarely make headlines, but they hold vital lessons.
Wealth is not just a celebration — it’s a responsibility. When life brings sudden prosperity, resist the urge to inflate your lifestyle. Instead, change your mindset.
Plan. Protect. Preserve.
Because true wealth isn’t about how fast it comes — it’s about how long it lasts.