My personal injury case just settled and I have $45,000 after paying my medical bills and my lawyers. I have never had this much money in my life. What do I do with it?
You are not seeking legal advice here – this is financial advice. However, many of our clients have asked this question over the years and I will share some general thoughts.
First, you should set aside some money for what many people call an “emergency fund.” The emergency fund should be three or, even better, six months of the money that you need to operate your household. It should be kept in a savings account or a money market account and should only be used for emergencies – an unexpected car repair or medical bill or to meet normal expenses if you lose your job. You will gain an unbelievable peace of mind by having this amount of money in the bank.