This is a fun one, I saw that Money Rabbit posted this on Thursday inspired by Give Me Back My five Bucks’ What I would do if I won 1 million – 4 years later.
What would I do with a hundred grand?
I of course immediately began mentally listing the ways I would distribute the money, so excuse me for being a copycat, this is what I would do if I had $100,000 on March 15, 2011:
1. Pay off my student loan, $13,000, $87,000 left
2. Sock away $8,000 in my 6 month emergency fund, $79,000 left
3. Give my parents $15,000, $64,000 left
4. Give another person $1000, $63,000 left
5. Stock the food bank, $2000?, $61,000 left
6. Put $1000 in misc savings, $60,000 left
7. Set up a retirement investment account to contribute to monthly after an initial deposit of $5,000, $55,000 left
8. Pay off about $50,000 of mortgage, $5000 left
9. Take the trip I’ve been planning, $3000 left
10. Rebuild foundation laundry room, $0
Pretty incredible what I could achieve with an amount that’s not that large, I make $40,000ish a year… (I know, I gotta work on that) $100,000 is really only just over double my income. Two and half year’s worth of income and look how far it would get me! It gives me hope that I will achieve my dream of being a millionaire. Funny story; I exclaimed this to my mum and two coworkers/employees and they all laughed and scuffed and okay I laughed too but I said I swear, if it’s the day I die I WILL be a millionaire! so one of them asked; what about being a hundred-thousand-aire and do I think it would make me happy? I said no it won’t make me happy, but I’m going to do it anyway. It’s interesting though that he addressed a very valid point, I have no disillusions that money will solve my problems or make me happy…but it sure as hell is going to make my life easier and less stressful.
A hundred grand would allow me to become 100% debt-free including the house, have a fully funded emergency fund, help others, set up my retirement plan, do much needed repairs and renovations to the house and allow me to travel. $100, 000 would basically allow me to jump into the future 5 years financially. That’s pretty awesome.
What would you do with $100,000, would it make a dent? It will be interesting to revisit this in a years time to see what has changed.