Most of the money that comes to us in life is very much expected: the salary that lands in your account on a given day in the month, or dividends from an account. At other times, however, we may be surprised by a sudden financial gain - known as a “windfall” - which comes more or less out of nowhere. And there is something odd about windfalls, odder even than the simple fact of receiving unexpected money. They make us think differently about the money than we would if it had been paid as salary. That can have consequences. One of the first things to note about a windfall is that it feels “unearned” to most of us. Whether it is a surprise bonus at work, a bequest in a will, or compensation secured by personal injury solicitors, a lot of money all at once feels different to a salary payment. And it can end up being treated differently. We often feel that the money should be used to do “something big”, spending it on a statement item, or on the opposite extreme we may deem that it has to be squirreled away to avoid wasting it.

Because a windfall comes to us in a way different from the “norm”, we feel that it is outside our normal financial framework. It takes on something akin to a mystical nature, almost like it is a different kind of money. So it should be used to do something special, or it should not be used if at all possible. To treat it like normal money would almost be insulting to the money. But here’s the thing: money already has a special weight in life. It makes a very distinct difference to how life can be lived. A windfall allows you some extra breathing space in that regard, and that’s a valid enough way to “honor” the way it came to you.

For starters, we should be thankful: thankful to the family member or friend who gave us this gift or inheritance; thankful that you have been given a real, tangible piece of compensation for something arduous you have experienced; thankful that your work has been acknowledged. And while it may in some ways be a reminder of a traumatic event or a complicated family dynamic, that is simply a reason to explore the feelings raised by those events. The money itself does not change in nature, and it’s not essential to treat it in a different way.

First thing: place the money in a separate account to create some distance and give yourself a chance to think. This will allow you to acknowledge its import in your life. Then think more clearly. Will this money allow you to top up your emergency savings? Could it be used to pay off high-interest debt? Is it enough to make a deposit on a house or buy a car? Windfalls are often described as life-changing money, but “life-changing” doesn’t necessarily mean spectacular opulence; releasing the restriction of debt or being able to withstand a future setback are certainly valid ways to use it.

At the end of the day, a windfall is still money - and money that comes to us all at once can still be used in perfectly prosaic ways. Indeed, you could say that that’s the perfect way to acknowledge its value to you and your appreciation of how it has come to be.