I noticed this post over on Couple Money (after I read my own guest post there titled Find Deals on Diapers ) and thought I’d get in on this action. I of course have given some hard thought about what I’d do with a million dollars and since my mind tonight was swimming with some very deep subjects that I couldn’t sort out or decide on which one to write about, I thought I’d make Friday laid back like it should be. Here’s the breakdown:
No more Debt! (-$310,000)
Obviously the very first thing I’d do with my million is pay off my debt. We own two houses, one in which we live and one in Florida. Then I’d pay off my school loans entirely.
Yowsa. There goes a cool 1/3 of my million! But you know what? That’s still what the first chunk would go to and I wouldn’t regret it for a second. Debt is prison and I can’t wait to be free of all this debt even if it isn’t the dreaded consumer debt we all fear. Debt is debt.
That leaves close to $700,000 left over.
Necessary Lifestyle Inflation (-$35,000)
I wouldn’t necessarily call this lifestyle inflation in the tradition sense but the condition in which my family and I live, while optimal for saving money, isn’t always the most comfortable. There are repairs our home has needed for 5 years. There are things we’ve wanted to do to the home to just make it more livable for the same amount of time. It’s not even about the money sometimes, it’s about the time it would take for me personally to do some of this stuff and with money I could just pay someone else to manage other people to do it all for me 🙂
So I’d spend an estimated $35,000 in our current home getting it much more safe, liveable and comfortable. We’d put a pitched roof on the home since a flat room in Utah winters just really doesn’t make much sense. That would account for the bulk of that cost (I was loosely quoted $20,000). We’d redo the kitchen with tile and new cabinets, finish the final unfinished room and redo the driveway.
Business is Business (-$155,000)
There are some business ventures I’d really like to try out so with another $150,000 I’d open up a Subway. The franchise cost is only $12,000 and the rest would be used to secure a location. If I found something already vacant I could be up and running in no time. Subway is the most popular franchise in America right now and the most inexpensive to join when you consider royalties.
I’ve also got other ideas I’d like to put into action and money would make that possible. I’d put a couple thousand into AdRavage.com development (I can develop it myself but that takes time) and I’d also get some of my inventions manufactured/prototyped that have been bouncing around in my head for a few years.
That leaves us with half a million dollars.
Sit on that nest egg
With half a million remaining and lots of projects taking up my time, I’d sit on it for a bit. I’d put it in the highest yielding savings account I could find or throw part of it into an index fund. I may throw a few thousand here and there into stocks I fancy but at this point, with no debt, lots of fun projects, very few expenses (without mortgages, our expenses are only about 500 a month), I’d have the means to pretty much do whatever I wanted and live off any freelance jobs I felt like doing. There would most definitely be other business ventures I’d like to get involved in or start myself but until those come into view, I’d just enjoy life.
OK ok I’m not that selfish
I really would like to set up a charity, but not a charity of money. I’d set up something to help people find out what they really want to do, what they are really good at and teach them exactly how to get there and do that – all at no cost. Like, a Dream Academy “become who you want to be!”.
I would set up small funds for my kids education too, but nothing huge. I want my kids to have to work for what they get because I know how important that is. I’d do a match policy and match their income to a certain percentage or something until they were 18.
I know that probably sounds pretty boring, but honestly without our debts, I’d be happy. I’d be free and could just live out my life with my family working on whatever I felt like, whenever I felt like it. br>