What Will You Do With One Million Dollars?

Becoming a millionaire…

When we have little or limited money, we want to be rich. And one million dollars seem to be a common and easy number to grab from thin air as a definition of rich.

At least you can call yourself a millionaire.

So here is a really practical question, if you’re into self-improvement and finance, and you work hard and make use of the opportunity, chances are you will have that one million dollar soon.

What next?

But what next? How will your life change if you have one million dollars? How will you use it?

Having a plan or at least some thoughts about how you will use that million-dollar and what it can do for you is what most 90% of people are missing. They only focus on getting that million-dollar and forget about any long term plan of how to deal with the million-dollar.

When the million dollars come…

When we have that million dollars, we freeze and become lost. Our goal is finally reached, but we don’t know what to do next. And by the way, is a million-dollar enough?

If you are at your 30s and plan to retire early, spreading this million dollars over a period of 30+ years means that you can only spend around $2380 per month. Is this enough for you? That depends on where do you want to live and the lifestyle you want to have. And of course, your health conditions (medical fees are unexpected and can be very costly) and family situation (child’s education will need to be paid for).

What could happen?

If you don’t have a plan about what’s next after you’ve achieved one million dollars, chances are:

1. you may save it in the bank because you don’t know how to invest and you are afraid to risk your million dollars

2. you may quit your job and retire early with no plan about how you’re going to spend your retirement life

3. you may pay for the best school you can find for your kids, or buy some expensive gifts for your family and friends. Or buy an expensive car that you have been longing for. You may also spend it on a few extravagant trips and dinners with your family and friends then come back to realize that there is little left of that one million dollars.

4. you may downsize to try to live the rest of your life off this one million dollar

5. you may invest half or some of it in the stock market and pray that the selected stocks go up so that you can have more

6. donate some of that million dollars

7. repay existing debt

8. buy as many properties as you can with the million-dollar to rent out for passive income

9. use that million-dollar as start-up capital to start a business

10. use the money to fund your hobby (whatever that is and regardless of whether that makes any money or not)

And let’s see what does one million dollars really get you:

1. fear of losing the million dollars

2. out of the job that you hate but into nowhere (unless you have found some purpose, schedule or discipline on your own)

3. some luxury experience

4. sacrificing some standard of living to save money (yes, still saving money when you have a million dollars because you want this money to last)

5. gambling in the stock market (perhaps gaining some investment experience)

6. good reputation and some love

7. become debt-free

8. rental income and real estate management experience (and perhaps hustle if you do not have someone to help you)

9. based on start-up statistics, 90% of the chance your business will fail and the million dollars will be lost, a rather slim 10% chance your startup will last for 5 years and maybe make some money (but could mean a lot of hustle and countless hours of hard work.). I can definitely gain some business and entrepreneur experience.

10. happiness (but depending on how much your hobby costs, you may not be able to retire completely)

Your choice…

If this is what you desire and you have made a plan to walk in the right direction, one day sooner or later, you will reach there — one million dollars is a reachable goal.

What will you do with one million dollars in your bank? What do you want that million dollars to do for you?

Give it some thoughts when you are bathing.

Note: this is not investment advice. I’m not financial planning professional. Just sharing what is working for me as part of my investing strategy or what I have learned on my investment journey. Please be reminded to do your own research and consider your own circumstances before making any financial decisions. You could also check with your financial professional to understand what would be best for your situation.

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Writes about Career acceleration; FIRE Retire in 10 years; Passive investment; Abundant mindset

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Connie C

Writes about Career acceleration; FIRE Retire in 10 years; Passive investment; Abundant mindset