Whether it’s an inheritance, retirement plan payout, insurance settlement or tax refund, many Americans will receive a large amount of cash in a lump sum at some point in their life. This may make you jump for joy, but it should also prompt you to think about how you can make the money best work for you.

Take time to weigh your options. Receiving a large amount of money is exciting and may tempt you to make an impulsive decision about spending it. Think carefully about how the money will affect your overall finances and how you can best use it to help reach your short-or long-term financial goals. While you’re considering your options, you may want to put your cash in a low-risk, liquid investment.

Review your financial goals. It may be tempting to spend your new cash on a vacation, a new car, a boat or some other major purchase. That’s OK if you spend the money on your top priority. But before you spend the money, review your family’s short-and long-term financial goals.

Perhaps investing the money now will help pay the child’s college costs in ten years, or maybe you’re approaching retirement and increasing your savings will put your nest egg on the fast track. If you’re been trying to save several months’ income in cash reserves for emergencies, your lump sum may make that task easier. Whatever your goals, prioritizing them will help you decide what to do.

Pay off debt.

Put your cash to work. Investing your cash instead of spending it may help you increase the size of your lump sum over time. Whatever your retirements goals, consider consulting with a financial advisor for help in creating an investment plan and choosing securities that are suited for your investing time frame and risk tolerance.

Consider taxes. The tax consequences of your decision are important reasons to review your plans with a knowledgeable financial advisor because a large lump sum could easily change your income or estate tax situation.