You Won A Million Bucks. Now What?

What would you do if you won a million dollars?

Well, that’s the fun question that Lance at the blog Money Life & More posed to his readers not too long ago. Of course, I absolutely love to think about this stuff, so I’m happy to oblige.

But first, let’s set the scene: Imagine me completely freaking out because I won a million dollars. Okay, deep breath. Now it’s time to spend!

The First Step Would Be Easy

I’d set aside the $400,000 to pay off all of the hubs’ medical school loans and both of our graduate school loans.

That Leaves Me With $600,000.

Time for some fun. I’d put 50,000 aside just for a vacation fund. That could easily equal 10 very nice trips or 5 fancy international adventures complete with first class plane seats. Hey, if I’m a millionaire now ($600,000-aire?), I can at least let my 6’3″ hubs have some legroom.

Now, What To Do About the 270 sq. ft. apartment?

Well, I’d keep it. :) We only have one year left in Grenada, my landlords are like my parents, and plus, I’m more concerned about other things like hiring someone to do all of my laundry, cook dinner, walk my dog, and tidy up for me. Luckily, labor in Grenada is very inexpensive. $5,000 for help for the rest of our time here should do it. I’d also put $50,000 away to help us with rent in New York when we move back to the States for the hubs’ clinical rotations and a future mortgage downpayment.

$545,000 To Go

Whew, I’m a little tired from all that math but not too tired to go shopping. I’ve always wanted someone more fashionable than I to help me pick out a new wardrobe complete with some fun, inexpensive jewelry. I tend to buy items at thrift stores and not as complete outfits. It would be so nice to have someone help me! $10,000 for new clothes and shoes for both the hubs and me would be really fun. Personal shopper, here we come!

Oh yeah, My Biz

You didn’t think I’d stop working did you? I love my job, and I love writing my blog. I’d keep working where I am now, and I’d keep writing in my little corner of the web. It’s too much fun to stop doing that! However, I’d spend $5,000 to hire a freelancer for one year to help me research opportunities to guest post and help with other forms of marketing. That should give Budget Blonde a good boost and help me to determine how to grow even more at the end of the year.

And Now For More Useless, Materialistic Stuff

I kind of love that new, white iPad mini! It’s amazing. I still have $530,000 of my lottery winnings to go so I’d splurge on the 4G one and a few years of service. I might as well throw a big iPad in for the hubs as well. He wanted one anyway. :)

Vroom Vroom

Is it boring that I’d still drive my current car that’s parked at home? I guess despite my (alleged) riches, I’m still a frugal girl at heart. Still, I’d set aside $20,000 to buy the hubs a car since he doesn’t have one right now, and I’d put another $20,000 aside for one for me once mine dies.

$489,000 left

I want to make sure that we don’t struggle in any way. We’ve lived paycheck to paycheck before, and it’s an awful feeling. I’d put $100,000 away in a form that’s easy to liquidate if necessary. I’d use this for emergencies, unexpected medical bills, and eventually help with raising some kiddos should we have any in the future.

Invest

I’d take the rest, $389,000, and invest it. Since I’m 25 years old now, this should be quite lucrative when I finally decide to retire. Of course, the hubs will eventually graduate from medical school and residency and start working, and I’ll also continue my writing. So, we’ll be adding to that amount as we grow old together. <3

So, what would you do with that kind of money? I feel quite content that I’d actually do exactly what I’m doing right now. I’d just feel a lot better about things, since I wouldn’t have that outrageous student debt over my head, and I’d have savings for just about anything we could possibly want or need.

About Catherine Alford

Catherine Alford aka "Cat" is a personal finance freelance writer who currently lives in the Caribbean with her husband and spoiled pup, Julep. To learn more about her writing services, please visit her Hire Me page or e-mail her at Cat[at]BudgetBlonde[dot]com. Follow her on Google + to get all the latest updates.

Lovely comments:

  1. I absolutely love this question Cat! :) I think it’s fun to think about too! And, your choices are good ones too! :)

  2. not to be a debbie downer, but what about the tax man? Or is the assumption that this is after tax?

    BTW – would love a post sometime on your taxes. Are you double taxed on income you make in Grenada?

  3. This is almost exactly how I would use it as well! Pay off all loans, nice vacations and invest the rest.

  4. Oh it’s so fun to fantasize about this! I would say most would go into retirement, I’d try to invest in some real estate, maybe just a tiny bit of fun money for some new clothes and travel. That’s about it for me!

  5. I love your breakdown! When people love their jobs many continue to do them no matter how much they win. Being able to take more vacations is so nice too. The biggest lottery jackpot in Canada this month is $50 million. No one won the last 2 weeks so it keeps getting carried forward. Draw is this Friday night. Fingers crossed :-) If I won that I would rent a private jet to travel.

  6. Very cool that you decided to do a post on this. I’d tell you what I did… but I wrote a post on it so your readers will have to go check that out if they want to know :)

Trackbacks

  1. […] Cat at Budget Blonde in Grenada wrote about what her life would be like if she won a million dollars, especially since she and her husband have $400,000 in student loans to deal with. You Won A Million Bucks. Now What? […]

  2. […] Editor’s Note: Great post, Sean! I once wrote about what I’d do if I won a million dollars. You can check it out here. […]

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