You dream about it and all of a sudden it actually happens: a cousin you’ve never heard of dies halfway around the world and leaves you his fortune. Or maybe you suddenly hit it big at the lottery or poker table. However it happens, you are suddenly laden with an excess of moolah and life is sweet…or is it? Studies have shown that more than one third of lottery winners declare bankruptcy within a decade – and that scary number, my friend, does not include the number of lottery winners who end up just scraping by after hitting the big time.

Sure, you think you’d be a darling at being filthy rich, but do you really know what it takes to keep lots of cash while maintaining your sanity? Here are some ways you can hang onto both if you get lucky (financially speaking):

•    Know the risks. You assume it would never happen to you, but it does happen – someone strikes it rich and winds up without a penny. People who strike it rich and end up years later bankrupt don’t get there by accident and you could learn a lot from these folks. In many cases, poor planning, bad advisers, and overspending are the culprits. Steer clear of them and continue socking money away into a savings account. Yes, even when you are filthy rich you still need to pay yourself first.

•    Start to get smart about money. Before you hand over all your cash for someone else to take care of, you need to learn about investments, money management, and money in general. Read up using reliable resources.

•    Go easy on yourself. You’ll make mistakes and it’s ok to feel smug – or angry or frightened. You’ll need to give yourself some time to adjust. This is probably not the time to make life-altering decisions. Set aside some money to treat yourself and don’t pressure yourself to make major decisions right away.

•    Figure out your position and plan ahead. How much money do you now have? What are your debts and living expenses? What are your long-term plans? Can you get there on the money you have? What are your current banking limits? If you have really hit the big time, you may need to upgrade your banking options so that you enjoy accounts with added security.

•    Hire a team of trusted advisors. You can’t actually be wealthy alone. You will need some trusted professionals to help you avoid huge tax penalties, poor planning, and bad investments. The key word here is “trusted.” You need to pick your pros carefully – check references and recommendations – and once you do have advisors you will need to continue to manage your money and make decisions yourself. At minimum, you may need a financial advisor, an attorney, an accountant, and someone to help you figure out taxes.

A counselor or trusted therapist isn’t a bad idea, either. You will need some support when people start hounding you for money. A good team will keep you on track and will ensure that you stick to your financial plan so that your windfall lasts a long, long time.

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