If you spend down all of your money quickly, as some lottery winners do, then you won’t be able to afford your home’s upkeep. Sure, you might be able to pay off the mortgage now-but you’ll have years of taxes, maintenance, and other costs to cover. Speaking of big purchases: Buying a pricey home is one of the most common mistakes wealthier people can make. Take time to get a tax attorney and trusted financial advisor in place first. This is true not just so you don’t rush into anything you might regret (see below), but also to protect yourself.
“Maybe you have student loans you want to pay off-that makes sense. Don’t go out and buy a Ferrari,” says Irwin.
