Preparing for a Money Shock, Part 2

In our previous article on money shock, I talked about the forms a financial windfall can take, as well as some of the different emotional responses bettors can have.  While we all want to make lots of money betting on sports, a lot of punters are not psychologically prepared for the reality of a sudden change in their fortunes.  Guilt, fear, or excessive excitement can all lead the unprepared punter right back to the poor house.  How can you deal rationally with a financial windfall so that money shock doesn’t get the better of you?

1. Do nothing different for the first year. 
2. Decide what you want to do with the money in the meantime based on what is meaningful and important to you.
3. Get help if you need it from a professional.
4. Check your perspective in a year.

These four steps will prevent you from doing something impulsive and foolish which could cost you your whole fortune.  Whether you won big on one wager or you are finally starting to make a second stream of reliable revenue on sports betting, your financial change in fortunes can change your life for the better, but only if you let it.  Taking that first year and behaving as if nothing has changed will remind you of everything which has not changed and give you a sense of continuity.  You will be able to orient yourself in your new reality and work through those messy emotions without them impacting your financial life.

During that time, your perspective will adjust.  You will be able to figure out what is important to you.  Do you really need that new Porsche and that huge mansion?  Or would you rather start up a nonprofit or a new business?  Or maybe you would like to put all the money into a personal project?  Maybe you will decide you want the car and the house after all.  Whatever you decide, it will be something that genuinely matters to you. 

Taking this time makes sense even if you did not just win a huge lump sum of cash.  Say you just started making money reliably for the first time ever as a bettor.  Continuing to behave as if you are not for a while will help you figure out what to do.  Should you quit your day job or not?  Should you put the winnings into your betting account or save them?

If your situation takes the form of a sudden massive windfall and not a simple adjustment in the way you make money, you may want to contract with a financial advisor at this stage, someone who can help you to identify smart investment opportunities and work with you to achieve your goals. 

You became a sports bettor to make money, and chances are you are working hard every day to achieve your goals.  But it really can pay off to take a few minutes to think about your plan for the day you do succeed.  This may be just as much a factor in your long term success as the strategies you are using to get rich in the first place.  Don’t let money shock get the better of you!