Here is what it would feel like if you won a million dollars… or at least how I see it going down.
You wake up, turn on the coffee pot, grab some breakfast and flip open your laptop. As you are logging in you decide to grab your phone and look at your checking account because it is payday.
However, when you pull up the account you notice a 7 digit number instead of the normal 4. You spit coffee all over your laptop but who cares, you are officially a millionaire!
After the shock wears off (if it ever does) you are now confronted with one question: What are you going to do with your new fortune?
Opposing Viewpoints Blog Battle!
Hey, so before you read any further this is a dueling blog post. What do I mean exactly?
MikedUp Blog and I wrote opposing blog posts on the topic of inheriting $1,000,000 dollars. Keep reading to find out what I say then be sure to go to MikedUp Blog here to see what he has to say about the subject!
If I inherited 1,000,000 dollars…
Who would have thought that inheriting a million dollars would pose such a potential problem? Like, what do you do with all the money?
I can’t help but think of Bruno Mars every time I say millionaire out loud. But if confronted with the “problem” of having a million dollars come my way I would be really torn on just exactly what to do.
Should I invest?
Should I buy something?
Should I pay off my debt?
Should I save?
Should I quit my job?
The list goes on. And for many people, the answer might be really simple. I posed this question on a social media channel recently and the answers poured in.
“I would save a third, pay off my house and invest the rest,” and another person commented!
ted, “I would buy real estate and pay off all my debt.”
Yet, as the answers flowed in I realized I had no clue what I would actually do with a million dollars. Sure I could finish paying off my wife and I’s student loans, crush our mortgage and take a few vacations.
And as I sit here and contemplate what I would do with a million dollars that seems like a pretty sound plan.
However, believe it or not, if there was a million-dollar cash windfall sitting in my checking account I would do just one thing: I would save it for the next 365 days and do absolutely nothing with the money.
Saving 1 million dollars.
My name is Josh and if you have never visited my blog, Money Life Wax, then here’s a quick backdrop on my wife and I. My wife has her doctorate. I am a public school teacher. The doctorate alone is essentially a recipe for student loan debt galore… I am talking $250,000 plus.
So in 2016 we started paying down our student loan and auto debt and as it stands we owe $150,000 on Lauren’s student loans. We have made some progress, but we also have quite a ways to go.
Even though we are in a much better spot then we were two years ago, (In 2018 we paid off $70,000 in student loans alone), the logical choice if a million dollars came my way would be to pay off the student loan debt. Nobody would disagree.
Unless you are this guy.
Long term thinking.
I am sure I could find someone who is a professional and could guide me in the right direction with properly investing a million dollars. I could take the million and I would really have a nice diversified portfolio.
Or maybe I would invest in real-estate and have rentals so that I could have an on-going passive income stream. However, one thing I have learned over the last two years of delaying gratification and paying off student loan debt is that patience is key when it comes to money.
My wife and I have gotten really good at streamlining our student loan payments and creating a plan that works for us. By the end of 2018, we should be close to breaking into the five figures mark, as it pertains to what we owe.
With a 2.3% certified deposit rate on a million dollars, the $23,000 earned in interest would be more than enough to cover the student loan interest. That justifies just letting the money sit.
And while you might be getting fidgety at this point and screaming, “You idiot you could get a 5% return if you invested,” I will go back to my main point – patience.
Slow and steady always wins the race.
Personally, I have learned the hard way in life how money works. I have let impulsivity get the best of me time and time again. While I have been able to generate cash flow, I used to be really good at spending money.
Maybe you know exactly what you would do with a million dollars, I, on the other hand, would want to sit and think about it. Sitting on it and waiting 365 days would give me plenty of time to come up with the best strategy!
After throwing four deposits of $250,000 each in 1 year CD’s at 2.3%, I would take a pen and pad of paper and brain dump all the different ideas floating around in my head. Real estate, stock index funds, debt payoff, investment properties, business start-up ideas, people I can help, and so on.
I would then come up with a list of people who are experts in those areas that I could access, mentors so to speak. We all have those friends who are going to, “Try real-estate,” but I don’t try anything, I do. So just like Yoda, with a million dollars and my personality, I would want to learn as much as possible first before I did something.
The choice is yours!
I always believe action is better than inaction, but not every day does a million dollars come your way. In most cases, statistically, it actually never will. So pretending to know exactly what to do with a million dollars when I have never had it would be rather ignorant on my part.
Taking the time to find the right people, make the right moves, and come up with the best plan of action would not only help my family and me in the long term, but it could also potentially set us up to have the freedom and control we all desire.
My biggest fear would be squandering away 1 million because of excitement. Excitement is an emotion. The last thing I would want to repeat is the ESPN 30 for 30 series “Broke” in my own life.
So while you might already know what you would do with a 7 figure check, me personally, I know what I would do too.
I would wait, hold out, create a plan and find the right people so that my future self would be thankful!
Question: What would you do with a million dollars inheritance?
Be sure to comment below and make sure you checked out MikedUp Blog to see what he recommends you do with $1,000,000!!!!
Josh writes about ways to make money, pay off debt, and improve yourself. After paying off $300,000 in student loans with his wife in less than five years, Josh started Money Life Wax and has been featured on Forbes, Business Insider, Huffington Post, and more! In addition to being a life-long entrepreneur, Josh and his wife enjoy spending time with their chocolate lab named Morgan, working out, being outside, traveling, and helping others with their finances! I got serious with money when I used Personal Capital to track my finances.