New Money, Old Habits: What's Your Financial Turning Point?

Everyone’s heard the horror stories: lottery winners who go broke a couple of years after the big jackpot, celebrities in bankruptcy court, or pro athletes who’ve squandered their millions and live on the street.

These extreme cases are examples of a much wider behavioral phenomenon, one that covers not only people with sudden millions, but also recent college graduates who are flush with cash after getting their first real job or small business owners whose hard work finally pays off after years of squeaking by. People who come into money need good advice to turn their money into wealth.

“They’ve never been in that situation before, and it can be quite shocking,” said Morningstar behavioral economist Sarah Newcomb, Ph.D., author of the forthcoming book Loaded: Money, Psychology, and How to Get Ahead without Leaving Your Values Behind.

Click to