I frequently daydream about what I would do if I won or was given certain sums of money. (Anyone who wishes to make any of my dreams a reality is welcome to do so.) Plus it's one of those questions that people get asked in a sort of getting-to-know-you kind of way. Here's how I would put various amounts of money to use. (If anybody had any doubts about how boring I am, those will shortly be put to rest.)
$100
I'd just put it in the bank. I'm sure it would eventually get used for something.
$1,000
We are doing a quasi-Dave Ramsey financial plan. We've saved up our six-month emergency fund, but with both cars soon to take their last spins, we are pretty certain we'll have to buy at least one car this year, and when we do that the emergency fund will be at least in part depleted. We're hoping to have saved up enough for a car that when one of them goes we don't have to drain the emergency fund at all, but right now the prospects of that are grim. With that said, we'd put almost the entirety of an extra $1000 into the car fund. I might spend under $50 for some kind of treat like new clothes or a dinner out or something.
$10,000
This answer is pretty much the same as the first. With the money we'd have left over (because we plan on buying a newish used car instead of a brand new car), we'd probably contribute to paying down the mortgage. Again, maybe a little splurging, this time on a small vacation or something a little nicer than dinner out.
$100,000
This is quite a bit of money. And I'd chuck it at the house. And it would cut years and years and years and years and years off my mortgage. And it would be amazing. If I didn't have a mortgage (because the house was paid off or something) I'd probably put it toward retirement and also go on a trip to Europe.
$1,000,000
I would definitely pay off the house. And I'd go on a trip to Europe. And I'd buy some new clothes. And I wouldn't wait for the cars to die before upgrading them. (I'd still probably buy used, though.) I would also buy some properties to rent out so that I could have continual money coming in.
And that is what I would do with extra money.
2 comments:
Chris always says if we won the top prize of $1,000,000 for Bonds that he would put it all in a high interest Savings Account for the first year, at the end of the year we'd pay tithing and be able to live off the annual interest - but he would still work. Cos he likes it. Me too.
Oh and we'd MOOOOOOOOOOOOOOOOOOOVE baby. ASAP.
And I probably wouldn't be gutted about my garden. Well not too much anyway.
I think I'd also have motion activated sprinklers in the garden - take that CATS!!!!!
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