Yes, sudden wealth syndrome really does exist. Just as the name implies, the syndrome comes from getting a huge amount of money out of nowhere. Stay calm though, for you can still avoid getting the syndrome from creeping into you.
Sudden wealth syndrome: the phenomenon
Sudden wealth syndrome (SWS) can occur to everyone. Whether it is an unexpected inheritance, big bonus, surprise payout, cryptocurrency trading win, or even lottery, receiving such a big amount of money come with an emotional burden to som. According to Investopedia, this syndrome is not necessarily a psychological diagnosis. The term first started by therapists that dealt with people who turned wealthy in a night.
How does sudden wealth syndrome affect someone? There are a lot of symptoms for the syndrome, including feeling left out by former friends, guilty over the fortune, to feeling anxious over losing the money. It is also common for people with the syndrome to face an identity crisis.
Curtis Financial Planner also noted several lifestyle-changing actions that usually people with sudden wealth syndrome do. Some of them suddenly quit their job without a certain future plan. Some others completely remodel their home. They also give expensive gifts or money to friends or family in need. It is uncommon for them to purchase expensive cars that they may not afford in the long run. Though, there are some who prefer going on luxurious vacations. While no action is wrong, it could be harmful if not done without careful planning and thinking. Moreover, these actions are often done impulsively to relieve stress.
Avoiding the syndrome
The key to avoiding sudden wealth syndrome, as quoted from Curtis Financial Planner, is to develop mindfulness. Know what you want with your money, and match it to the values you go with. Keep a cool head in deciding something, especially when it comes with your money. Have some people you really trust by your side to help you with any big purchase or life-changing decisions. If necessary, talk to a therapist or an advisor.
Read also: Meet ‘Han Ji Pyeong’ Start-Up from Australia!
Follow and join us on Youtube, Instagram, Facebook, and Twitter to be part of the trader community in Asia
