Not used to having some money

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Kathrin

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Imagine you had eben very poor, literally down to the last few dollars or so, and already having had to borrow money to pay some bills.
Then finally you get a long-awaited inheritance; we’re not speaking millions here, but enough to pay back the borrowed money, pay your bills for a while, maybe help some friends, and finance your next trip to your “second home”.
The money is from an old man you used to visit at an assisted living place and help go on outings etc, who included you as one of the friends he shared his trusts with. (God bless his soul, a sweet guy!)
Now how would you go about sharing? Would you tithe the money in the beginning? But then, give it to who? The church, or a Third World project?
Or just share where you feel it is needed as you go along, until you run out again? (I don’t have a job, I used to make my money as a street musician, I am a poet/writer/musician and otherwise volunteer a lot, help other people.)
I am just wondering what other people think about this.

Kathrin
 
Kathrin said:
Imagine you had eben very poor, literally down to the last few dollars or so, and already having had to borrow money to pay some bills.
Then finally you get a long-awaited inheritance; we’re not speaking millions here, but enough to pay back the borrowed money, pay your bills for a while, maybe help some friends, and finance your next trip to your “second home”.
The money is from an old man you used to visit at an assisted living place and help go on outings etc, who included you as one of the friends he shared his trusts with. (God bless his soul, a sweet guy!)
Now how would you go about sharing? Would you tithe the money in the beginning? But then, give it to who? The church, or a Third World project?
Or just share where you feel it is needed as you go along, until you run out again? (I don’t have a job, I used to make my money as a street musician, I am a poet/writer/musician and otherwise volunteer a lot, help other people.)
I am just wondering what other people think about this.

Kathrin
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I’d give half to the Holy Father and use the rest as I see fit, considering that in prayer.
 
I would put the excess in a very stable stock that pays dividends each year and when they are paid tithe 10 percent minimum to charity.
 
As I said, we are not talking about a huge sum here. Huge for me, maybe. 😉 I am used to living on almost nothing. Still, I have always liked to help out other people too when I could. Most of my friends would probably say, now keep something for yourself! But I don’t want more than I need.
 
I have seen this destroy people. One must be exceedingly careful in the event of a financial windfall.

I knew a lady who got a divorce from a very abusive man. He also happened to have a good deal of hidden assets. The woman had been poor her entire life. In the divorce settlement she received a low six-figure cash settlement.

She took this money, moved to a different city, rented a really cool house, never got a job, and embarked on a buying spree. The money was gone in less than a year and she was deeply in debt. She ended up being both financially and emotionally ruined.

Here is my suggestion.

[sign]**DO **NOT
**SPEND **
**ANY ****OF **IT!
[/sign]

Do things in this order:

  1. *]Set aside 40% to deal with any tax consequences.
    *]Pay off any debt you may have.
    *]Give 10% or thereabouts, to the Church.
    *]Put the maximum you can in a retirement fund (Roth IRA) that you cannot touch.
    *]Put the remainder in very conservative investment (long term CD).
    *]DO NOT make any major purchases!!
    *]DO NOT move!!!
    *]DO NOT change your daily/weekly/monthly budget!!!
    *]DO NOT change your life in any way!!!
    *]Income that you had been using to pay the debts you have paid off should be put in a savings account.
    Basically, live like you live now. Only you will have savings to fall back on in the event you hit hard times, or it comes time to retire.
 
Give as much as you feel in your heart is appropriate, give to any charitable cause you feel best deserves it, do it humbly and cheerfully.
 
Generally good advice, though I have seen some accountants actually advise that people take about 10% of it and splurge, after saving/investing the other 80% (10% for tithe, of course for us Catholics…or at least I would like to think).

10% seems to get the splurging bug out of someone’s system and still feel like they are enjoying some of so-and so’s money that was left for them on themselves without doing serious harm to the principal.

If you force yourself to save all of it…then you might actually be more tempted to splurge later, in my opinion. Enjoy a little, then you won’t be as tempted to spend more/nor will you resent the windfall with a “what good is it if I can’t enjoy it” attitude.

But if it is a serious windfall a visit to an attorney and accountant before making any decisions is in order.

Andy
 
AHapka said:
Generally good advice, though I have seen some accountants actually advise that people take about 10% of it and splurge, after saving/investing the other 80% (10% for tithe, of course for us Catholics…or at least I would like to think).

10% seems to get the splurging bug out of someone’s system and still feel like they are enjoying some of so-and so’s money that was left for them on themselves without doing serious harm to the principal.

If you force yourself to save all of it…then you might actually be more tempted to splurge later, in my opinion. Enjoy a little, then you won’t be as tempted to spend more/nor will you resent the windfall with a “what good is it if I can’t enjoy it” attitude.

But if it is a serious windfall a visit to an attorney and accountant before making any decisions is in order.

Andy
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You do make a good point about the desire to “splurge”. But one must be very careful.
 
I desire neither to save it NOR to splurge.
I know it will not last all that long. A large part of it I actuually do need.
After thinking about it, I think my main question would be this:
I do want to tithe. But does that mean I have to give it to the church per se, or can I also give (part of that amount) to a charitable cause?

Churches where I live (in Switzerland) do not take up collections for themselves, as this is done through taxes. The collection is almost always for some charitable cause. Right now they are taking up the Lenten collection, which goes to something called “bread for all” or something like that. Would what i put in there be part of tithing, or is tithing something you have to do directly to the church?

Kathrin
 
since you ask, I would say apply precisely the same spiritual attitude toward money when you have it, as when you don’t have it. Either way, it is a gift from God, to be used for his purposes. One of those legitimate purposes, and your duty, is to use it for your own real material needs and those of your family (needs, not necessarily desires. if the desire is for something that will help you carry out your other duties, such as a car, that is quite all right). In any case, as with any gift, thank God, return a portion of it to him first (a tithe, any amount that seems prudent) either directly to the Church or to his poor, given in any way that seems wise in your own good judgement. The greatest pleasure of wealth is the ability to give material charity, so indulge. But after your initial tithe, do take care of your family’s needs first, including wise investing if feasible. Then you may give freely as your conscience moves you.
 
To let you know how I’ve been doing -
A tenth of what I got would be about 1’700 dollars. I already gave about 900 away (to a charity and to a Lenten church collection, that also goes to charity).

I also lent somebody who was in a difficult situation about 350.

Just now I found out though that where I live, I may have to pay over 3000 dollars in taxes.I am not sure though. A part of me thinks now though that I have to be more careful. I already needed to pay about 2000 dollars in health insurance and other bills too.

But I don’t want to be like that, I mean, when it’s gone, it’s gone again, right… as long as I have enough for my next trip to San Francisco (where I also do charity work; long story).

I am wavering between feeling too generous and not generous enough.🤷 Mostly I feel I am doing all right though. If I find out I have to pay that much in taxes though, I maysubtract it from the “tithable” amount, would that be ok?

Kathrin
 
rpp, for inheritances below a certain amount (and I think that amount is in 7 figures), there are no tax consequences.

It’s funny–I had a dream about just such an event the other night. There was a lawyer with an inheritance for me, and I had all sorts of visions of wealth running through my head. When the paperwork was all said and done, the check was for $600. I was soooo disappointed 😛

What would I do? 5% to our parish, 5% to Cullman Caring for Kids (local food bank), pay off our mortgage, put the rest in trust to fund on-going care for our autistic grandson (in the care of the other grandparents) and for our grand-daughter’s education ('cause it’s for dang sure our son isn’t saving anything for it). With our mortgage paid off, we can live very well on my pension and have lots of $$$ to give away.

DaveBj
 
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