Expecting a windfall of money is essentially gambling. If you are looking for or expecting a lump sum of cash to pay off debt, fund retirement or other large expense, this is what we mean by a windfall. Commissioned sales people often develop this mindset as they plan their finances to coincide with their commission payouts. Debt consolidation loans and refinances can have the same impact because they create a similar quick release of pressure with a lump sum that pays out and refinances the current debt and payments. The danger is that this mindset seems to overtake or cloud solid planning with the excuse being ‘that it’s hard to plan’ and therefore a life of jumping from windfall to windfall develops. In many ways, this is a gambling mentality for people who wouldn’t otherwise describe themselves as gamblers.

What can you do instead? When you adopt a true budget mentality and behavior, a plan will follow because the definition of a budget is ‘planned expenses and a program for financing them’. Figure out how much your monthly budget is for your desired lifestyle expenses, and work with your financial professional to create a plan to finance it on a monthly basis, not on a windfall to windfall basis.