Welcome back to another episode of the 360 Money Matters Podcast! This week, hosts Billy Amiridis and Andrew Nicolaou tackle a question that catches a lot of people off guard: what should you actually do when you receive a lump sum of money?
Whether it’s an inheritance, a work bonus, a redundancy payout, or any other unexpected windfall, Billy and Andrew explain why the initial instinct to spend or invest it straight away often leads to poor outcomes. They unpack why the source of the money matters, how the emotional weight of a lump sum can cloud good decision making, and why pausing before acting is one of the most valuable things you can do.
The conversation moves through practical options for anyone weighing up a mortgage payoff against investing, using an offset account, or exploring a debt recycling strategy, along with a real client example of what can go wrong when a big decision is made too quickly. Billy and Andrew also discuss the psychology behind lifestyle creep and why treating new wealth as permanent can undo years of good financial habits.
This episode is for anyone who has recently received, or expects to receive, a lump sum of money, whether that’s from an inheritance, a bonus, a redundancy, or another source. It’s also a useful listen for anyone wanting a clearer framework for thinking through big financial decisions more broadly. As always, Billy and Andrew bring real client stories and practical, easy to follow advice, helping listeners understand not just what to do with a windfall, but how to think about it.
This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis & Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorised representatives and credit representatives of Akumin Financial Planning – AFSL 232706.
Episode Highlights
- Why pausing before making any decision is the most important first step after receiving a lump sum.
- How the source of the money, whether inheritance, bonus, or redundancy, changes the right approach.
- Why the right question is what you’re trying to achieve, not what you should invest in. The difference between paying down a mortgage, using an offset account, and debt recycling.
- A real example of how an emotional property purchase after an inheritance overlooked cash flow and affordability.
- Why your past history with money shapes how you’re likely to handle a lump sum. How lifestyle creep can quietly erode a windfall if spending isn’t deliberate.
- The long term impact of investing a lump sum, illustrated with a compounding example over 20 years.
- Why most people end up splitting a lump sum across several goals rather than choosing just one.
