Personal Finance

I'm 29 and just inherited $10 million - how do I stop being so frugal?

Maurie Backman

Published: January 29, 2025 11:35 am

A lot of people in their 20s are struggling with low wages and minimal savings. But what if you’re in your 20s with $10 million to your name thanks to a generous inheritance?

Clearly, that puts you in a strong financial position. But what if you don’t feel that way? What if you’re more than fine financially, but you have a hard time spending money and getting over your frugal tendencies?

That’s the situation this Reddit poster is in. They recently spent a lot of money on a vacation they no doubt deserved, but they feel guilty about it and want to know how to change their mindset.

The reality is that that may not happen overnight. But there are ways you can adapt to a sudden windfall.

A surprisingly tough situation

In theory, inheriting a large sum of money is a good thing. In practice, it can be tricky for a few reasons.

First, if you’re not used to having so much money, you may be overwhelmed by your new bank account balance. And also, you might feel guilty about spending that money because you’re not used to making large purchases. Plus, because you didn’t earn the money yourself, you may be wondering whether you’re entitled to spend it — even though it’s yours.

This mindset isn’t productive, though. If you’re feeling guilty about inheriting a lot of money, you could always pledge to donate some or pay your good fortune forward in another way. But that doesn’t mean you should deny yourself purchases that could improve your quality of life.

However, to get on board with that, you may want to talk to a therapist or counselor who can help you come to terms with your windfall. Just because a good thing happened to you doesn’t mean the transition into your new reality is easy. So it’s a good idea to talk through your feelings about money and your newfound situation.

Get financial help

You often hear stories about lottery winners squandering their paydays and ending up broke. You don’t want that to be you, either.

Now if you’re someone who’s struggling to spend an inheritance, that may not be in your future due to your frugal mindset. But it’s important to get help managing your windfall so you’re able to put it to good use, and also, so that it doesn’t end up running out on you.

To that end, get yourself a qualified financial advisor and have them work with you to manage your money. Let them help you come up with a spending plan that allows you to enjoy your wealth without going overboard. And also, have them set up the money you aren’t using right away in different investments so those funds continue to grow.

With a $10 million inheritance in your late 20s, you now have plenty of options. And with the right financial management, your risk of that money running out will be pretty low if you spend it wisely. So you might as well take the opportunity to do things most people your age can’t, whether it’s plant roots by buying a home or move into a job that may not offer the best paycheck, but is mentally or emotionally rewarding.

And remember, whoever left you that inheritance most likely would’ve wanted to see you use it well. So that should help you get over the guilt of spending that money, too.