A couple of weeks ago, I read an article written by Brian from Luke1428 about what to do if you've received a lump sum of money (you can find the article here). On that same day, Trent from The Simple Dollar wrote about what he would do if he were to be the recipient of a large windfall (you can find his article here).
All this talk about extra money got me thinking - what would I do if I were to receive a large amount of money? To make things more specific, what would I do if I were to receive $1 million today?
First of all - I would do a "woohoo I'm a millionaire" dance all over my house. (I've already choreographed this) :)
| It looks something like this... |
Next, I would take Brian's advice and I would wait. Probably for 6 months. I can already hear you, "6 months?! That's a long time! Spend yo' money, guuuurl!" Believe me - I want to! But receiving a large amount of money all at once will definitely do a number on my emotions, and I can't make sound decisions when my emotions are out of whack! Knowing me, if I didn't wait, I'd run to the nearest clothing store and go cray-cray! Then I'd have the worst case of buyers' remorse. Nope, not gonna happen - waiting will be my friend :)
After my waiting period, I would give 10% right away. Giving is important to me and it always will be, even if/when I become a millionaire. No questions.
Next on the list is paying off ALL debt! Hopefully all of my CC debt is gone by then. If not, those would go first. Next would be my student loans, and my car loan would immediately follow. And you can't forget my mortgage!
After paying off those debts, I would fully fund my Roth IRA and my 401K for the year ($5,500 and $17,500, respectively). I'd probably set aside enough money in a separate savings account so I can fully fund these two accounts for the next year, as well!
Also, I have a ton of short-term and long-term savings goals, such as a (potential) wedding, honeymoon, and moving to the Big Apple one day. I've also wanted to start a business, so I'd definitely save up some capital for its launch. Not sure what business I would start though. I've bounced around the idea of owning my own cafe to being a real estate investor to even owning my own financial planning practice one day. Well, whatever it is, a big chunk of the million will go towards it!
I would also look into more ways to diversify my income. This would include P2P (peer-to-peer) lending, rental income, and investing in dividend stocks.
Now I get to have a little fun, right? I've always wanted to go on a cruise to the Caribbean Islands, so I would do just that! And I would also buy one or two (or five) pairs of Louboutins. I know, I'm a recovering shopaholic, but man... There's just something about those red soles!
I know, I know... how boring, right? Aside from my vacation and new shoes, I'm really just going to be getting rid of debt and saving up. I know - sooo not sexy. But when all my debt is gone, that just means I have more money freed up every month. Less bills = less stress, in my opinion. Also, having money allocated for different life goals will keep me stress-free when thinking about whether or not I can afford the wedding I want, or the lifestyle in NYC that I've always dreamed of. And to me, financial security is exciting. (Excuse my nerd moment)
 |
| From ChristianLouboutin.com |
What would you do with a million dollars?
AMDG,
Lisa
