What to Do When You Come Into Money (And Don’t Screw It Up)

So you just came into some money! Woah! Maybe you flipped a property or something and walked away with six figures. Maybe you got an inheritance, a bonus, or sold something for way more than you expected. Wherever you got it from, now you’re sitting there looking at your bank account thinking, “Holy crap, what do I do now?”

Look, I get it. That feeling is wild. It’s exciting, terrifying, and honestly kind of paralyzing all at the same time. You know this is a big opportunity, but you also know you could totally blow it. (pointy guitars, anyone) I’ve coached some peeps through this exact situation to tell you something important: what you do in the next few weeks will matter way more than you think.

Recently, I had a coaching call with someone who just flipped a property and cleared about $100k in proceeds. They’d never invested before. They were stoked about the win but completely lost on what to do next. Should they buy another property? Throw it all in the stock market, and what hot picks should they buy? Pay off their mortgage? Buy a boat? (Please don’t buy a boat lol)

Let me walk you through what we talked about, because if you’re reading this, you or someone you know may be in a similar spot.

First Things First: Don’t Do Anything Stupid

Before we get into the smart stuff, let’s talk about the dumb stuff. Because I know what happens when people suddenly have cash burning a hole in their pocket.

Don’t run out and buy a new car. Please! Try really hard to NOT upgrade your lifestyle. Don’t suddenly start living like you make twice what you actually make. I’ve seen people blow through a $50k windfall in six months because they convinced themselves they “deserved” a little reward. Then the reward becomes that new truck, a vacation, a kitchen remodel, and boom, it’s gone.

Here’s the thing about windfalls: they’re not income. I don’t consider them income. They’re not going to keep coming every two weeks like your paycheck. This is a one-time shot to change your financial trajectory. Treat it like the gift it is.

Take a Breath and Make a Plan

The first thing you need to do is absolutely nothing. And I mean that in the best way possible.

Give yourself a week or two to let the excitement wear off. Open a high-yield savings account if you don’t already have one, park that money there temporarily, and just breathe. Let yourself get used to seeing that number in your account without feeling like you need to do something with it immediately.

During this time, you’re going to make a plan. Not a vague “I should probably invest this” plan, but an actual written-down strategy that covers:

• What are your immediate financial needs?
• What are your short-term goals (next 1-2 years)?
• What are your long-term goals (5+ years)?
• Do you have high-interest debt that needs to go away?
• Do you have an emergency fund? If not, this is your chance to build one.

For the person I coached who flipped the property, their situation was pretty clear: they wanted to flip another property soon, and they wanted to start investing for the long term. Two distinct goals, two different strategies.

The Short-Term Money: High-Yield Savings Accounts

If you know you’re going to need some of this money in the next year or two, don’t invest it in the stock market. Seriously. The market is for money you won’t touch for at least five years, preferably longer.

Long-Term Investing That Actually Works

For my coaching client, they were actively looking for their next property to flip. That meant they needed to keep a chunk of that $100k liquid and accessible. We decided they should set aside whatever amount they thought they’d need for the next deal in a high-yield savings account.

Right now, HYSAs are paying around 3-4% interest, which isn’t going to make you rich, but it’s way better than the 0.01% you’ll get at most traditional banks. Your money sits there earning a little bit while staying completely safe and accessible for when you find that next property.

Some solid HYSA options include Marcus by Goldman Sachs, Ally Bank, and American Express Personal Savings. Shop around, compare rates, and pick one that doesn’t have weird fees or minimum balances.

The Long-Term Money: Index Funds and Getting Started

Now we get to the fun part. The money you don’t need in the next few years? That’s your wealth-building money. And if you’ve never invested before, you’re probably thinking this is gonna be wicked-complicated. It’s really not. Or, it certainly doesn’t have to be. Wall Street may want you to think it’s complicated, but it’s really not.

What the Heck is an Index Fund?

Let me break this down super simple. An index fund is basically a basket that holds a little bit of hundreds or thousands of different companies. Instead of trying to pick individual stocks (which is basically gambling unless you’re a full-time professional), you buy a piece of the entire market.

When you invest in something like the S&P 500 index fund, you’re investing in the 500 largest companies in America. Apple, Microsoft, Amazon, all of them. When the overall market goes up, your investment goes up. When it goes down, yours goes down too. But over long periods of time, like decades, the stock market has historically gone up about 10% per year on average.

That’s it. That’s the secret that financial advisors don’t want you to know is this simple. You don’t need to sit and watch CNBC. You don’t need to f’n day-trade. You just buy index funds, hold them for a really long time, and let compound growth do its thing.

The “Boring” Investing, Low-Fee Index Funds Strategy That Quietly Wins

Where to Open an Account: DIY Options

If you want to do this yourself and you’re cool with learning the basics, you have two main options that I always mention are Fidelity and Vanguard.

Both of these companies are massive, well-established, and offer low-cost index funds. They’re not trying to sell you weird products or charge you crazy fees. They’re straightforward, which is exactly what you want when you’re starting out.

Fidelity has a slightly more modern interface and their customer service is pretty solid. You can open an account online in like 15 minutes, transfer your money, and start investing.

Vanguard is kind of the OG of low-cost index investing. Their founder, John Bogle, basically invented the index fund. Their interface is a little more old-school, but their funds are rock-solid and cheap.

At either place, you’re looking for something like:

• Total Stock Market Index Fund
• S&P 500 Index Fund
• Target-Date Retirement Fund (if you want something even more hands-off)

The expense ratios on these funds are typically 0.03% to 0.15%, which means for every $10,000 you invest, you’re paying $3 to $15 per year in fees. That’s insanely cheap compared to actively managed funds that can charge 1% or more.

How Much Should You Invest?

This is where it gets personal. For this guy with $100k, we decided they should probably keep around $20k-$30k in the HYSA for their next property to flip , and invest the remaining $70k-$80k in index funds.

But your situation might be totally different. Maybe you need to pay off high-interest debt first. Maybe you need to build up a 6-month emergency fund. Maybe you’re in a spot where you can invest the whole amount because you’ve already got your financial foundation solid. Remember, for your specific situation you may want to talk to a financial advisor or your investment professional.

Here’s the Heavy Metal Money framework:

1. Pay off any debt over 7% interest (think like credit cards, personal loans, etc.)
2. Build a 3-6 month emergency fund if you don’t have one
3. Work your way up to maxing out retirement accounts if possible (401k, IRA)
4. Then invest the rest in taxable brokerage accounts with index funds

Don’t Overthink the Account Type

You’ll most likely want to open a brokerage account (this is different from a retirement account like an IRA). A regular brokerage account lets you invest money and pull it out whenever you want, but you’ll pay taxes on any gains. That’s fine. It’s still worth it.

If you haven’t maxed out your IRA for the year ($7,500 for 2026 if you’re under 50, $8,600 if you’re 50 or older), consider doing that first. It’s basically free money in tax savings.

There’s No Shame in Getting Help

Here’s something that might surprise you: I don’t think everyone needs to DIY their investing. Yeah, I just spent several paragraphs telling you how easy it is, and it is. But some people just don’t want to deal with it. They’d rather pay someone to handle it so they can focus on what they’re good at.

And that’s completely fine.

If you want professional management, here’s a little of what you need to know. Try and find someone who charges based on Assets Under Management (AUM) and keeps their fees low. You’re looking for something around 0.5% to .09% annually, not the insane 1.5%- 2% that some old-school advisors still try to charge.

There are also what are called robo-advisors like Betterment and Wealthfront that will manage your money for around 0.25% per year. They use crazy computer algorithms and AI to build and rebalance your portfolio autoMAGICally. It’s kind of a middle ground between DIY and full-service.

The key is to not let analysis paralysis keep you from doing anything. It’s better to pay a small fee and actually invest than to leave that money sitting in a checking account earning nothing because you’re overwhelmed.

What About Real Estate?

I know some of you are reading this and thinking, “But Chris, what about just buying more real estate?” Of course, I’m into real estate. Clearly, if this dude just made $100k rehabbing, and flipping a property, real estate can work.

Real estate is work. It’s not passive income, despite what the Tiktok gurus tell you. It requires capital, time, knowledge, and often a strong stomach for dealing with contractors, tenants, and market fluctuations.

If you like real estate and you’re good at it, absolutely keep doing deals. Set aside money for your next flip like we talked about. But also diversify. Don’t put all your eggs in the real estate basket. The stock market gives you exposure to thousands of companies across every industry. That’s diversification you can’t get with a couple rental properties.

The Action Plan

Alright, let’s make this super actionable. If you just came into money and you’re reading this, here’s an action plant to what you could do in the next seven days:

Day 1-2: Don’t touch the money. Let it sit. Write down your financial goals and priorities.

Day 3-4: Open a high-yield savings account and transfer any money you’ll need in the next 1-2 years. This includes emergency fund money if you don’t have one yet.

Day 5: Decide if you want to DIY your investing or use professional help. If DIY, open an account at Fidelity or Vanguard. If professional, research fee-only financial advisors or robo-advisors.

Day 6: If you’re going DIY, research which index funds match your goals. Start with simple, broad-based funds. Don’t overthink it.

Day 7: Make your first investment or schedule a call with an advisor. The hardest part is just starting.

The Compound Interest Reality Check

I mean, let’s say you decide to invest, like, $70,000 in index funds today and don’t touch it for 30 years. Based on historical average returns of around 10% per year, that $70,000 could grow to around $1.2 million! That’s not a typo. That’s the power of compound growth over time.

Understanding the Rule of 72

But if you wait even 5 years to invest that money, letting it sit in a regular savings account instead, you’d miss out on hundreds of thousands of dollars in growth. Time is literally money when it comes to investing.

This is your shot. Try not to waste it on a nicer car or a bigger house payment. Put this money to work building wealth that’ll give you options and freedom down the road.

The Real Talk Nobody Wants to Hear

Coming into money can, literally, change your life. But only if you let it. Most people who get windfalls just blow through them within a couple years. They upgrade their lifestyle to match their new account balance instead of investing in their future.

You know what’s way cooler than a new truck? Having enough money invested that you could quit your job if you wanted to. You know what’s better than a fancy vacation? Knowing you’re building wealth that could take care of you and your family for decades.

I’m not saying don’t enjoy any of it. Sure! Take a small percentage, like 5-10%, and do something fun. Celebrate the win. You earned it. But be smart with the rest.

The people who build real wealth aren’t usually the ones making millions every year. They’re the ones who take opportunities like this seriously and make smart decisions when it matters most.

You’ve Got This

If you’re feeling overwhelmed, that’s normal. Money is emotional, and big decisions are stressful. But you don’t need to have everything figured out today. You just need to start moving in the right direction.

Park your money somewhere safe while you learn. Talk to people who’ve done this before. Read some books (I recommend “The Simple Path to Wealth” by JL Collins) for example. Take some time, but don’t wait forever.

You just got dealt a really good hand. Don’t fold. Play it smart.

Horns up, my friends. \m/ \m/