Most people imagine what they would do if they came into a lot of money. Usually it’s if they win the lottery but it could be an inheritance, lawsuit, whatever. They will live on a beach, have a mansion, hire people to bring them everything, sounds terrible to me.
Though I never play the lottery, and don’t foresee any type of inheritance coming my way. But, it’s nice to think about what I would do if I was to get a nice little lump payment. For ease of this article though instead of saying I win one of those hundreds of millions dollars we’ll say that I win $1 million.
Pay Off Debt
The very first thing I would do is pay off the remaining debt I have. Though I’ve done a debt consolidation and my debt is slowly but surely disappearing, it would be nice to be able to pay the whole thing off right away.
Though it’s a bit high we’ll say that my debt comes out to $40,000. That would include all the credit cards, the business debt, the car loans, and my wife’s student loans everything. To be honest it’s not that much but for the sake of this experiment lets say it is. Bringing my lump payment down to $960 thousand.
The next thing I would do is move, I have lived in Florida now for over a decade and am very ready to leave. I also lived in Maine for the first half of my life and don’t really want to live there.
So discovering exactly where I would want to go would require a ton of research and traveling, lets budget another $20 thousand for the move bringing the lump payment to $940 thousand.
On top of that wherever I would I move I would buy a house for no more than $200 thousand as I don’t need too much space with just my wife and I. This would bring my total down to $740 thousand.
Quit My Job…Again
People think you need to be a millionaire in order to retire, but if your expenses are low enough you really don’t.
With $740 thousand dollars invested into just dividend stocks with a 4% interest rate I would get $29,600 a year. Though that doesn’t sound like it would pay most peoples bills, and it wouldn’t, it would pay mine. My bills come to less then $2,000 a month, and would be even less if I own a house outright. Truthfully I will actually have more than enough money if I get $29,600 a year for just waking up in the morning.
Jason Fieber retired early because of his investing in dividend stocks. His whole story is a major reason why I got on this path to financial independence, entrepreneurship and the whole leaving the 9 to 5.
What About You?
So what would you do if you won the lottery? Or came in to a lot of money? Let me know in the comments.