Making Surplus Funds Last When They Finally Arrive

Money in the bag isolated on a white backgroundOver the years, I’ve heard story after story about how someone finally received the funds they had hoped for, only to have the surplus cash quickly dwindle down to nothing.

Although it may seem counterintuitive, when you have more money than you are accustomed to dealing with, after an initial period of elation, there’s a good chance you’ll get what I call the moving stupids, an idea I introduced in my book, Build Your Money Muscles.

The moving stupids is a state of disorientation that normally accompanies any major change. You can become, so uncomfortable that you unconsciously do whatever it takes to get back to your familiar state of being.

If you decide to hunker down and adapt to the new circumstances, it can take as long as three months – or longer – to feel comfortable or “at home” in the new situation.

The problem is, if you’ve gotten extra cash, three months is plenty of time for you to fritter away much of your newfound riches.

Here’s the bottom line:

It takes as much discipline to deal with more than enough as it does to deal with just enough or less than enough.

To prevent returning to an uncomfortable financial state, learn how to effectively manage your cash flow when things are tight so that when surplus comes, you stay in touch with your numbers and make wise financial decisions.

If you have struggled financially or suffer from financial fear, there’s a good chance that you also suffer from Financial Vagueness Syndrome. Building wealth and keeping it, especially if you have your own business or professional practice, requires that you do a good job of keeping track of your income and expenses and that you make wise spending decisions.

There’s an Internal Element Too

Surplus causes its own set of feelings, plus the fact that every surplus dollar requires a decision. That decision often moves towards spending when you’ve been in a seemingly deprived state for any length of time.

So it’s important to be aware that you are going to feel disoriented when you reach a new financial position.

The wish list of things to acquire and do that has been on your mind will loom large. The best thing to do is to make a rule that you’re going to wait a month or two, at least, before making any major purchase.

During that waiting time, deal with the emotions that are bound to come up. And if you haven’t started keeping financial records, this is a good time to begin. Preparing for surplus in a mature way sets the intention for increased revenue.

Let Me Help You

If you’d like to avoid the discomfort of financial ups and downs or, if you need someone to help you decide what actions to take when you find yourself with surplus revenue or a significant inheritance, let’s talk.

I can help you create a rational spending plan while developing or enhancing your financial management skills. At the same time, it’s important to deal with the emotional issues that present themselves.

To set up a time to talk, use the Contact Form .