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If I had a million dollars

on March 29, 2017

Once a year, people sit down to do their taxes and some of them get a nice surprise in the form of a tax return. This year, my husband and I are one of those people. It’s not much, but it’s enough to do a few things with. While trying to plan out what we would use this extra money for, I got to thinking…..what if it was a huge windfall, like a hundred thousand, or even a million dollars? Of course this got my brain spinning and I wondered what others would do if they magically received a million dollars.

What would you do if you randomly received $1 million?

First, I would breath a big sight of relief as our money stress would pretty much disappear.

Next, I would figure out how much I would have to pay in taxes on it, and set that aside in a savings account until tax time (that way it could still earn a little interest but be set aside so that I don’t accidentally spend it)

Second, I would set aside 10% to be given to charities. I would probably have to spend some time really digging into the charities that I would consider to make sure I agree with their business practices (i.e. to see if the money they receive goes mostly to the actual cause, or a high percentage goes to pay CEO’s outrageous salaries)

Then, I would pay off all our debts: mortgage, car loans, student loans, and credit cards. I would probably pay off my parents’ debts and my husband’s parents’ debts, if they have any. I would probably set aside a portion do be divided as a one time payment per person between my brother and my husband’s siblings, and stress that it should be used for debt payoff. I’m not sure how much I would allocate toward this, but I would want my family to be able to not stress so much about money.

I would probably use a small amount for my husband and I to go on a nice vacation. We really haven’t went on a vacation since our honeymoon (10 years ago) except a random weekend to Kansas City and a trip with my family to Myrtle Beach.

Then comes the more difficult decisions. I would have a few options at this point. With our mortgage and all debt payments gone, that would leave a gap in our bills that might give me the option to quit working and live mostly off my husband’s income, perhaps withdrawing a small amount each quarter to assist with bills if necessary. When we have kids I really want to be a stay at home mom, but it just isn’t feasible for us to live off one income right now. Also, staying home would give me more time to pursue working from home, perhaps I wouldn’t have to touch the money that is left until retirement?

Another option is to consult a financial advisor and put what’s left into retirement accounts, savings, the stock market, or even real estate purchases. Granted, after all the things listed above, I wouldn’t have anywhere close to the original $1 million left, but it would still be enough that I wouldn’t know how to handle it myself. If I chose this route, I would probably continue working, but I’m not in love with my current job, so I’m not sure. The money would certainly have time to grow until I reach retirement age, but it would still be there in case of an emergency of some kind.

Honestly, I don’t know what I would choose to do after paying my debts, helping family and taking a much-needed vacation, but that’s not a decision I will be having to make anytime soon.

Sometimes it is fun to ponder the possibilities, even if it would never happen. Have you ever thought about what you would do with a large windfall like that? Comment below!

 

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One response to “If I had a million dollars

  1. […] If I had a million dollars Apr […]

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