What Would You Do With A Million Dollars?

What if you received an inheritance of a million dollars or won a cool million playing the lottery. Would you know what to do with it?

I know many people believe that money will make their problems go away, but I truly believe that money magnifies your problems. Whatever you were doing with your money when you had less is what you’ll do with it when you have more. Think back when your income was half of what it is now. Are there many differences in what you do with it now versus what you did with it then. I know for me, I do more of what I’ve always done. I’ve always watched my pennies and I still do to this day.

If you can’t manage $10, the likelihood of you being able to manage 1 million is very slim. A lot of it has to do with your behaviour towards money. This would explain why unfortunately so many people who win the lottery end up loosing it all. It’s always so sad when I hear these stories because money can be a great thing if you are ready for it and if you know what to do with it.

Do you remember Evelyn Adams? Evelyn was the lucky lady who won the lottery twice? Well maybe she wasn’t so lucky! Her first win was in 1985 and her second win was in 1986. Her total winnings were $5.4 million. Imagine winning the lottery two years in a row. Those are some serious odds! Unfortunately Evelyn lost it all and currently lives in a trailer. I wonder if her life was better before her lottery winnings and if she has any regrets about winning twice. Especially if relationships were broken as a result. If you play the lottery or may receive an inheritance in the future, here are a few tips to prepare you for a big windfall:

  • Know how much money you make. It surprises me how many people don’t know exactly how much they make
  • Know exactly what your expenses are
  • Make sure your expenses are less than your NET income
  • Have a savings plan
  • If you have any addictions, get help. Addictions + Money = Disaster
  • Discover what your purpose is, money will most likely help you get there faster
  • Set short and long term goals for your money and your life
  • Try to create a balanced life for yourself

What would you do if you suddenly received a million dollars from the lottery or an inheritance?

10 comments

  1. Michelle says:

    If I suddenly won that much, I would pay off my student loans and my house. Then I'd save/invest a whole ton and go on a shopping spree as well :)

  2. bogofdebt says:

    I would totally pay off my debt and buy a better car (not a new one, a better one!) and maybe a house. I'd love to invest most of it and give some to my family (my guy is included in debt payment and giving some to his family). And I'd take a small amount for "play money".

  3. cmwywec says:

    @ Michelle, I would definitely go on a shopping spree as well. Maybe in Paris!

    @ Bogofdebt, It would be fun to give some money to the family anonymously, like paying off their mortgage. Then the bank would send them a letter saying their mortgage is paid off in full. The look on their faces would be priceless.

  4. I would pay for mine and my husband's graduate school tuition in full, buy a moderate sized house, hire a financial planner to protect my assests and make sure they are in good investments (not sure how I'd go about this, but I've always heard the more money you have the more compliated it is to manage it), give some away to charity, and then do a lot of traveling

  5. I don't think it would make much of a difference in my Pf mindset. I would probably pay up my mortgage. What I know I wouldn't do is buy a new car nor ending up in a trailer.

  6. I'd pay off all my debts, and upgrade the house a bit. Replace the beaters with some "new" used cars. But the rest of it, I would invest in income stocks/mutual funds to supplement my income with some passive income.

  7. I have very definite plans for any future million-dollar windfalls. Though I don't play the lottery so I'm not sure how that would work out for me!

    I'd pay off my car and student loans first. Pay off my house (which I currently rent from my parents) and my parents' house. Give myself $10k or so to spend on whatever I wanted, then hire a financial advisor to invest the rest. I couldn't depend on it to live, but it would be nice to have a large lump sum earning a little interest for the next 30-40 years.

  8. I will spend it to our house and save some for an emergency fund just in case.

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