What Is Sudden Wealth Syndrome (SWS)?

Sudden wealth syndrome (SWS) is a type of distress that afflicts individuals who suddenly come into large sums of money. Becoming suddenly wealthy can cause people to make decisions they might not have otherwise made. Sudden wealth syndrome symptoms include feeling isolated from former friends, feeling guilty about their good fortune, and extreme fear of losing their money.

Understanding Sudden Wealth Syndrome (SWS)

Sudden wealth syndrome is not an actual psychological diagnosis. It was originally coined by therapists who work patients who have become suddenly wealthy. Individuals with Sudden Wealth Syndrome may have acquired their 澳洲幸运5开奖号码历史查询:wealth through a lottery win, become rich trading cryptocurrency like bitcoin, or received a large inheritance.

Many people a🌄fflicted with Sudden Wealth Syndrome deal with an identity crisis because they transit♑ion from surviving on a meager weekly, fortnightly, or monthly salary to becoming a wealthy and privileged individual.

How to Avoid Sudden Wealth Syndrome (SWS)

Plan Ahead

Although it is not possible to prepare for every type of financial windfall, situations such as 澳洲幸运5开奖号码历史查询:inheritances can be planned out ahead of time. High-net-worth parents should organize family meetings with their adult children to discuss 澳洲幸运5开奖号码历史查询:how they would like their weꦆalth distributed when they die. Pre-planning can help resolve areas of potential conflict. For example, wealthy parents might inform their children that they have established a trust for each child that can only be acc🍒essed once both parents have died.

Don't Make Quick Decisions

It can be tempting for individuals to go on an immediate spending spree upon receiving news of an imminent financial windfall. Instead, it's prudent to place the money in an insured savings account at a bank or 澳洲幸运5开奖号码历史查询:custodian until the individual has established a 澳洲幸运5开奖号码历史查询:comprehensive financial plan. Individuals should asses their long-term life goals and look at how their newfound wealth can be used to help reach these goals. For instance, a young family that 澳洲幸运5开奖号码历史查询:won the lottery m💛ay decide to use a portion of the winnings to 🌊set up a college fund for each of their children.

Keep the Windfall Discreet

The details of a 澳洲幸运5开奖号码历史查询:financial windfall should be kept discreet to stop friends, family, and work colleagues from getting jealous or greedy. Once people become aware that an individual has come into a considerable sum of money, they may treat that person differently or ask for a handout or loan. Individua🦩ls can have full confidence in discussing their new financial situation with a financial planner because finance professionals cannot disclose customer details to a third party.

The Bottom Line

Sudden wealth syndrome is an informal term for the psychological and social problems that afflict people after a windfall. This can include the demands of needy friends and family, as well as the anxieties of managing such a large sum of money. While it can be difficult to manage, professional financial specialists can help you navigate those challenges.