I inherited $250,000 from my grandmother when she died – here’s how I spent it all and ended up living in a rental apartment

A woman who inherited $250,000 from her late grandmother has revealed how she quit her job, squandered the money and now lives in rent.

Sarah Faith Jacobson, a 40-year-old business consultant from Texas, said she had no idea what to do with the large sum of money after receiving it and “regretted” how she spent it.

Her grandparents were successful real estate investors in the Bay Area in the 1970s, and after her grandmother died in 2020, Jacobson inherited $175,000 from her life insurance policy and another $75,000 from her will.

She soon hired a financial advisor to help her develop a money management plan, but after paying her $5,000 up front for her help, Jacobson abandoned her and decided to follow her “champagne taste for beer” budget instead.

“I went on a road trip to places I wanted to move to and spent most of my inheritance on it,” Jacobson told Business Insider.

Sarah Faith Jacobson, a 40-year-old business consultant in Texas, spent the $250,000 inheritance she received after her grandmother died in 2020

“I had quit my job and had no source of income – I was living off the money I had inherited.”

She received the $175,000 as a lump sum and the $75,000 in multiple payments over several months.

Jacobson admitted that after her grandmother’s trustee transferred the life insurance money into her account, she soon realized she had a “great fear of money.”

Growing up, Jacobson was never really taught how to handle money, other than how to balance a checkbook.

She attended college and graduated debt-free in 2007 after her family financed her bachelor’s degree in women’s studies.

Jacobson then worked as a lactation consultant and educator in Colorado, and although the work was not well paid, her family helped with her rent.

When the large amount of money arrived in her account, Jacobson felt a sense of relief, fear and doubt.

Jacobson admitted that after her grandmother’s trustee transferred the life insurance money into her account, she soon realized she was “very afraid of money.”

“Seeing that was a relief because I didn’t have much money at the time, but it quickly turned into a feeling that I wasn’t good enough or worthy and didn’t deserve any money,” she recalls.

Still, she continued to explore the country, packing her Subaru Crosstrek and heading to Denver, Colorado Springs, Santa Fe and New Mexico before settling in Austin.

Jacobson admitted that she spent much of her money on food, gas, hotel rooms and Airbnbs while traveling.

She also spent money on “fancy dinners,” a $2,000 diamond ring and $5,000 worth of medical equipment that she still owns. It is unclear what equipment it is.

When she ran out of money, Jacobson decided to contact the financial advisor she had initially left.

She soon hired a financial advisor to help her create a plan for her money, but after paying her $5,000 up front for her help, Jacobson “ghosted” her

“I had already spent most of the money at that point, but when we met, she was understanding and compassionate. She agreed to work with me since I had already paid the $5,000 up front,” Jacobson said.

The two then developed a plan to help Jacobson get back on his feet financially and professionally.

After a “moment of enlightenment” in 2022 and some “healing work,” Jacobson got a job in geriatric care and also took on some part-time jobs.

Now living in a rental apartment in San Antonio, she started from scratch and plans to save her money to invest in real estate one day.

“I am passionate about leading my leadership role in the corporate world,” she said.

“I’m better off, and if I got a lot of money again, I would be able to keep it and use it wisely.”