Hazzard has a post about a homeless guy who gets a windfall check. I wrote in the comment about what I’d do if I won the lottery. Pretty much, I think I’d become a professional volunteer or keep my job. I go nuts after being idle for a month. Unemployment in 2005 and Underemployment in 2001 proves to me that I really like being active.
If I won the lottery, I would keep working if my windfall was $3 million or less. If it was over $5 million, I’d definitely quit. Somewhere in the middle? It would depend on how I felt about my job and how soon I thought I’d need it for retirement.
So even if I suddenly became Ms. Moneybags, you’ll see my blog name change to “Ms. Moneybags’ Fiscal Management”. I’ll start writing it full-time. I’ll join Habitat for Humanity and build houses. I’ll teach knitting and spinning. Be a librarian. Teach how to read or teach English. I’ll teach financial literacy workshops.
I’ll give my parents some of the money so my mom can retire immediately. I’ll give some to my nieces and nephews for their college funds. I’ll make a trust fund for my developmentally disabled relative. I’ll pay off my condo. I’ll buy a newer car to fulfill my car fantasies. (Lately, I’m in love with the BMW M3 SMG. KICKY! But I’d have to get it new because used means someone else beat it up first.) I’ll endow a scholarship at my high school. I’ll buy a bunny rabbit and a dog as pets.
Someone at work buys lottery tickets and fantasizes about what she would do if she won all that money. After finding that out, I read Hazzard’s post and started to dream up what I would do. What would you do? What would you change about your life? Would you quit your job? How much would you have to receive?
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I wrote about this sometime back, windfall money (such as the lottery) usually ruins lives.
http://cashmoneybro.blogspot.com/2006/11/are-lottery-winners-really-winning.html
Something funny my co-worker said.
“everytime I find my self buying lottery tickets, I am usually interviewing for a new job”
If the bro hit the power ball. He would want to stay at his job, but all the media attention will make this impossible.
I guess most of the money will be spread out in very low risk stock/bonds/funds. I will live at my current means, and resist making big spending decisions for at least a few months. I would avoid buying homes or cars and I would certainly avoid being overly generous to my friends and family. I’ve come into some money before, I felt like everything was still the same. But it wasn’t and there was a handful of angry envious “friends”. I think I would invest in personal security above anything else. Big SUV, alarm system and such. Money in large quantities usually means some trouble.
I remeber reading an article by the guy that created craigslist. He said he was happy at his current income level and had no desire in becomming a billionaire. Basically he said he knew real billionaires and they don’t seem any happier. The other down side is all these guy have body guards.
All these thought and not a penny to realize them
I think I am going to buy a power ball ticket now.
I like all of those ideas.
Me, I’d pay off the current townhouse that I live in, fix it up, and then rent it out to someone to generate another source of income for myself. I feel like I wouldn’t be able to live on interest payments alone (though I could certainly try, given the opportunity! *lol*)
Then I would build a good, solid home with a great big fence and a three car garage on about an acre of land out in the country. I’d let the wife go hog wild decorating it while I searched for ways to invest the money carefully. My whole plan would be to build up revenue streams that would continue even after all of the lottery money is gone…because it never lasts.
Just my thoughts.
I would pay off my library degree, and continue working as a Reference Librarian. I think one of the benefits of windfall money would be the ability to take a position with a lower salary.
( I would also invest and buy property. Maybe a pair of Manolo’s, just to splurge!)
I would buy a condo, my dream is to have more than two bathrooms (I live in Manhattan, it’s hard to get a condo or coop big enough for 2 bathrooms under $1 million). I would then quit my high pay, high stress and long working hours job, take some time off to take some nice long vacations with my spouse to figure out what to do and go back to school just for fun. I’ll find myself a relaxing job under 40 hours a week.
I’ll walk into Tiffany’s and buy something impractical with diamonds on it. I’d buy my mom a very expensive bag (I’m thinking Hermes) that she’d be almost afraid to use but she’d get a kick out of owning. I could go on….
$5mm
All of the above, except move to St Lucia for good. Write a book and sip mimosas for the rest of my days.
Heeeeeey – it cut off the 1st half of my answer.
Less than $5mm
I’d donate $500k, pay off my car, SL, and house. Put 6yrs worth of college money away for my daughter. Put $1mm aside in a trust fund. Buy a SF home, fully furnish, rent out my TH. Vacation 2 wks in St Lucia then go back to work.
Greater than $5mm
All of the above, except move to St Lucia for good. Write a book and sip mimosas for the rest of my days.
Having too much of money is a sure shot for getting hostile reaction from people around you, if you are not kind enough to part with it when they come to you with their sob stories.
So I would not tell a soul other than my husband about it. No big publicity for me. Then I would go for work as usual and make small contributions to whoever I feel like without being too conspicuous. I’d just like to have that feeling of being in control of my finances and know that I can just chuck away my job if I wanted to.
I asked my girlfriend the other day what she would do if she won the lottery (not that she plays it). She had a hard time dealing with any number greater than $100k (she’s a grad student). At $100k she said she would look to spend/give away to family $50k – on herself spending on travelling – maybe not all at once – and then investing $50k. We were discussing our views about spending now vs saving for the future. She always insists that I will handle the money if we marry but I think that basic parameter needs to be a joint decision. For many people though thinking about sums much larger than they are used to is hard.
Funny what Bro said about lottery tickets and job searches – I find the same to be true. There’s a level, call it eff-you money, beyond which you don’t have to worry, because you’ll never have to work again. Depending on how careful you want to be, that level starts at about 5 mil and goes up. I figure, if you own your house outright, you can work almost any job to keep the lights on and food on the table.
I think, if I won say, $10mil, I would do a shopping spree first, and get it out of the way. Set up a checking account, put $500k in it, and just spend it. Cars, toys, clothes, gifts, a motorcycle, whatever.
Then, go on a vacation. Then, come back and think about what to do with the money. Most of the best options have been touched on – pay off house, loans, set up funds for kid’s education and charity. I’d do all that.
I think I’d use a good chunk of the money – after investments, homes and such are already taken care of – to start a business. Being your own venture capitalist could be fun.