This is the third in a series of posts with questions you should ask yourself to determine if selling a structured settlement is a good idea for you.
Essential Question #3: Am I good money manager?
Most of us, though we don’t want to admit it, are lousy money managers. If you sell your structured settlement and are left with a lump sum of cash, even if you have the best of intentions for its use, you may find it disappears much faster than you had planned, and for all the wrong reasons. To predict the likelihood of that happening, see if you are one of the people described below.
The Magician. In your hands, money has no choice but to disappear. As soon as it’s in your account, you start noticing all the must-haves you’ve been denying yourself. You haven’t bought a new handbag or dress shirt in a while. And didn’t the kids say they needed new shoes for school? As far as you’re concerned, there’s nothing wrong with the occasional splurge – something you remind yourself again and again and again….
Bad Luck Magnet. Amazing how money always finds a way to get spent, isn’t it? But for the Bad Luck Magnet, expenses are drawn to his bank balance as if by some unseen force. The car breaks down. The stove breaks. The kids get sick.
Penny Amnesiac. You go to the store and fill your cart, keeping a “rough” tally of what it will all cost, only to be shocked by a twice-as-high total when you check out. You never reconcile your checkbook – heck, most months you don’t even open the envelope. The bills coming in the mail are always higher than what you expected. And when those credit card statements come in, all those “little” purchases you made without thinking have added up to a heart-stopping balance.
The Softie. You’re a favorite among friends and family because they can always count on you for help. As soon as word spreads that you’ve sold your structured settlement, they start hitting you up for one thing or another. They’re masters of the sob story, and they always have a good reason to borrow a few bucks. And they always promise to pay you back THIS time.
Sound familiar? If so, and you still want to sell your settlement, assume that you’ll go through your money faster than you expect. What’s your backup plan? Do you have a job or some other source of income? If you’re not able to work, how will you make ends meet without your settlement? Structured settlements are often intentioned to save the recipient from himself – to keep him from spending the money too quickly. If you’re one of the people described above, maybe keeping your settlement is the right idea.
Still determined to sell? You’ll find another essential question to ask yourself next post.
If you need help selling your structured settlement, annuity or lottery payments,
contact us today. We are here to answer your questions and help you obtain the
highest possible price for your payments.
