'I got a €50,000 payout because of my cancer, but I don’t want to spend it'

Welcome to The Money Coach, a Times of Malta column where readers can ask questions about life's money issues. Send your questions about personal finances, inheritance, gifting or other personal finance topics to moneycoach@timesofmalta.com

Dear Luca,

This might not be like the usual emails you receive.

Earlier this year I was diagnosed with lung cancer, and since I had been insured for such a possibility, I was given a €50,000 lump sum by my insurance.

It might not seem like a lot, but it is exactly my annual salary.

I am currently undergoing treatment that I'm told has a 50-50 chance of working.

With this in mind, my idea was not to spend any of the €50,000, and instead save part of it and invest the rest. That way, should things end up badly, my wife and son would at least have a head start.

My wife disagrees and keeps insisting we should use at least a portion of it to enjoy more of life while we can.

I understand that the lump sum is intended to help me make this time more bearable and meaningful. But I am very cautious about this treatment not working and I don’t want to leave my family in financial difficulty.

It’s really a tough situation, almost like an added unwanted tension during one of the worst moments of my life; especially considering that my wife is normally a very cautious saver.

I’m here to look for an objective opinion, and given that you always insist on having a good base of money should anything happen, don’t you think my reasoning is correct?

Sick and Worried

Luca responds:

Thank you for having the courage to share this with me.

Let me first wish you well on your treatment. That should be your first concern right now.

Now, to tackle the question of the money.

I understand that you’re trying to protect your family’s future. On the other hand, your wife is trying to protect the time you still have together. Remember that both of you are coming from a position of love, but are expressing it differently.

While I agree with your thinking - save and invest the money so that your family has a good base - let me add a caveat.

Given the odds of your treatment succeeding are 50-50, if I were in your shoes I would want to spend as much time as possible with my loved ones, even at the cost of using a good portion of that €50,000.

Nothing can ever buy lost time. It is the most precious thing in the world.

You sound frustrated by your wife's shift from a conscientious saver to being keen to spend more. While in your eyes this might seem strange and not recommendable, remember that money is never an end in itself, but rather a tool.

This is a mistake many people, including me, tend to make – we sometimes treat money as the end in itself, when we need to start treating it more as a tool to get us closer to our life goals.

Keep a portion of your lump sum by all means. And I am sure that with the right discussion in this delicate time, your wife will also agree with keeping a sizeable portion. But don’t go to the other extreme. Think of it in two parts: one for protection, and one for living.

Like I always say in my columns, keep a clear financial base for security. If you don’t have a well-formed emergency fund, this might be the chance to strengthen it properly.

Life is meant to be lived fully. Remember that whilst money can support your family, it is the memories which will stay with them forever.

I wish you and your family well.

Luca is the founder of the Money Coaching Hub. Email him your financial questions or your response to today's question for a chance to be featured in a future column.

Disclaimer: This column is intended to provide general information on various topics related to personal finance. The information provided is for educational purposes only and should not be construed as personalised financial advice for your specific situation. Financial decisions are highly individual and can vary greatly based on your unique circumstances, goals, and risk tolerance. The author of this column is not authorised to provide financial advice. Before making any financial decisions, it is recommended to seek professional financial advice from an authorised financial advisor.