FiveCentNickel asked his followers on twitter, “What would you do with a major windfall? For the sake of argument, let’s say that someone dropped a million bucks in your lap. Would you pay down debt? Buy something nice? Save or invest it?”
There are tons of responses over at FCN, but most seem to line up with saving and investing the money and “living off it.” Most people I imagine would choose to quit their jobs and do work that is fulfilling to them, for people who are already happy with what they do, they are more likely to stay put in their job.
My response was @centsiblelife: “Pay off all debts, spend $100K updating our house/yard, put away $ for 4 college educations, save the rest and live off the interest.â€
Remember this is twitter so I was limited to 140 characters!
I would likely order my priorities like this:
1) pay taxes on the windfall
2) pay off all debt, including mortgage
3) renovate our house
4) put aside a chunk of money for each child (to use for college or a start on their life)
5) save and invest the rest
6) take an amazing, once in a lifetime, long vacation
I don’t know that we would continue working so hard, it’s likely that we would want to take a year or two off and spend it with the kids. I figure with that kind of money on hand we could afford to work part-time on our passions. I would continue blogging. 🙂
As you know we recently received a mini-windfall. We spent it in a pretty balanced manner in my opinion. 31% to fun, 23% to savings, and 46% to debt repayment.
Okay, back to reality. (see my next post)
So, what would you do with $1,000,000?