I spent my $250,000 inheritance on trips, shopping sprees and fancy dinners – this is how I turned things around

A WOMAN who spent her grandma's $250k inheritance on holidays and food has revealed how she managed to get back on her feet.

Sarah Faith Jacobsen, 40, was struggling to pay rent with a low-paying job when she came into a colossal sum of money in 2021.

The Texas native, after depending on her family financially, was astonished to receive $175,000 from her grandmother's life insurance and $75,000 from her will.

Despite hiring a financial advisor to help manage her newfound wealth, Jacobsen quit her job and went on a sudden spending spree.

She told Business Insider: "I'm a ‘champagne taste on a beer budget’ kind of girl.

"I took a road trip to places I wanted to move to and spent most of my inheritance on that trip.”

The 40-year-old received the fortune in instalments but was still able to blow most of her allowance on travelling and fancy dinners.

Jacobsen squandered her riches on expensive jewellery, health accessories and "fancy dinners."

Now aware of her mistakes, she put down her irresponsible spending habits down to a lack of education about wealth.

She said: “I struggled because I never received a financial education.”

“Money was not tight for my family, and I never had to pay for anything as a child.”

Inheriting thousands of pounds came as a shock and Jacobsen expressed that she felt guilty and undeserving of the sizeable income.

She added: “Seeing it was relieving, as I didn't have much money then, but it quickly turned into feelings about not being good enough or worthy and deserving of having money.”

These issues combined with a taste for the finer things in life led to her inheritance quickly dwindling.

Seeing the error in her ways, and the dent in her purse, Jacobsen returned to her financial advisor asking how to proceed.

Thankfully, the advisor was considerate of the case and helped her get back on track by working out different career avenues and sharpening her financial education.

Jacobsen was advised to save and invest. She now works multiple jobs and plans on counting her pennies so she can follow the advice given to her.