Tell Us How You'd Spend $1 Million And We'll Tell You If You'd Stay Rich
- by Joshua Laurent
- – on
- in Lifestyle
There are ways to take $1 million and turn it into $1 billion. There are also many more ways to take $1 million and turn it into $1. Bad investments, a lavish lifestyle and not taking care of things can lead a millionaire down the road to bankruptcy.
Nobody thinks they're going to blow all their money, but just take a look at statistics involving lottery winners. Roughly 70% of lottery winners who take in a major jackpot have lost all of the money within six years? Why? What do all of these people have in common? They make bad decisions with money. If they didn't, they wouldn't have bought a lottery ticket in the first place since it's statistically like throwing money away.
Getting rich doesn't mean you're going to stay rich. Of course, the flip side says there are certain things that must be done to achieve your goals. If you want to be a famous rapper, maybe spending a lot of money on clothes is important. If you want to be singer, maybe renting out clubs and performing is a good investment. Many people will tell you that the way you spend your money is wrong...but maybe you know what you're doing and they're all wrong.
It's time to figure it out. How are you going to spend that $1 million?
If you can only make one purchase, is it a house?
You're told that with your $1 million, you can only buy one thing. Sure, you could get an amazing wardrobe, the best vehicle or many businesses for $1 million, but there's just something about a house...or is there? Does this seem like too much work to deal with for that kind of cash?
How much of the $1 million goes just to the stock market?
The stock market is a very volatile thing. It has made some people billions of dollars and sent others into financial peril they can never recover from. What percentage of that million bucks are you going to take and invest into the stock market, hoping for a big return?
Are online companies good investments?
If you purchased one share of Google stock during its IPO in 2004, it's worth 15-20 times what you paid for it today. That's a nice investment, but for every Google, there's a Pets.com or America Online that seem great at first, but go on to be worth next to nothing. Still, is it worth the risk?
How do people view your handling of money?
This is not about how you view yourself, it's about what others think of your money handling skills. To people tell you that you really know how to stretch a dollar or that you make decisions that are like flushing money down a toilet? Forget if they're right, we just want to know what they're saying.
Would you spend half your money on this place?
So you want to buy a business and the local indoor bumper car/go-kart/track ball facility comes up for sale for $500,000. That's half your money gone. Do you think you have what it takes to run a business like this or would it be a very bad idea to let you buy this kind of enterprise?
Is having children a good investment?
The average cost of raising a child in America from birth to age 18 is $233,000, which means you could raise 4 kids with your million. Odds are one will grow up to be rich and successful and take care of you in your old age. That's a wise investment, isn't it?
Are season tickets for the rest of your life a good investment?
You could get a pair of season tickets to your (depending on exactly where you live and the popularity of your teams) favorite three or four sports for the rest of your life. Imagine going to every home game you've ever wanted. Or, you could scalp them for more than face value. Is it worth it?
Shoes...how much will you spend on them?
It used to be a stereotype that women spent too much money on shoes but if you look at 21st Century guys and their love of sneakers, it far outpaces anything close to sanity. How much of your million dollars should spend on footwear?
Will you recognize the people who are just there for your money?
Gee, when you were broke, you were just a tubby tattooed guy at the lake who couldn't get anybody to rub lotion on his belly. Now that you've got some cash, people are flocking to you and want to be your friend. Do you have the kind of good sense to recognize these kinds of people?
Are penny stocks a good idea?
The idea behind penny stocks is that you buy a company that is not worth very much and it doesn't have to become worth that much more for you to double or triple your money. Of course, they are also the ones that go out of business the fastest. Is putting a few pennies toward these stocks a good idea?
Does it make sense to just hoard your money?
If you don't want to potentially lose it in the stock market, then you just don't have to put your money there. If you don't want to travel or own big things, you don't have to buy them and if you don't trust other people with your money, you don't have to use a bank. If you don't spend it, you don't lose it, right?
Is it worth blowing money on a giant party?
You've got a million dollars, you've never been the center of attention and you're still jealous of those people who were on My Sweet Sixteen on MTV when you were growing up. They say money can't buy happiness, but if you're looking to network, maybe it's a good investment. What say you?
Does cryptocurrency seem like a good investment?
A few years ago, some guy invented a new form of currency that was all digital and created a way to "mine" for it. Then, more recently, as others have followed suit, the price of cryptocurrency like BitCoin has shot up to huge levels, but then fell, but then shot up, but then fell...is this a good investment?
What do you feel like this picture represents
You've got stacks of money with some kind of plant growing out of them. There's also somebody who is either taking a coin or putting it into their massive pile. This picture is clearly trying to tell us something, but what is that something supposed to be?
An isolated log cabin...good investment?
Instead of the decent house in a nice neighborhood, you've decided to go a little more rural and have the opportunity to buy a large log cabin and 400 acres of land in the middle of nowhere. It's an hour to a grocery store, two hours to a hospital. But you're in peace. Is this a good investment?
Do airlines seems like good investments?
You can always count on international air travel being a thing until we learn how to actual pull off the transporting you see in sci-fi films. But, flying has become a more depressing experience than ever before and people hate it. Does that matter when it comes to if it's a good investment? Would you put your money here?
Can money buy happiness?
You once had no money and now you have $1 million. You're hoping it will turn into more, but at the same time, you've always struggled and never had nice things. Now you've got the kind of money that, even if you don't turn into more, can still make things easier. Does your money buy you happiness?
If you're a trust fund kid, does learning about money matter?
First daughters have generally tried to uphold a level of dignity certainly while their fathers were in office and even afterward, with many going on to head non-profits and write books. Then there's Tiffany Trump. She didn't exactly go the Ivanka route, getting involved in any important way. Does it matter though?
What percentage of your money should you invest as a whole?
So you're given $1 million and you know the smart thing is to immediately take some of it and put it into investments so it will hopefully yield you more money in the future. But, you also want to buy some stuff, travel and have fun. How much money goes to your investments, be it stocks, real estate, or whatever?
How closely will you follow your investments?
So you've suddenly got this $1 million and you decide to invest a big chunk of it, but being smart enough to know what you don't know, you get a financial adviser who helps you with the hard decisions, or better, makes them for you. How often do you check to see how you're doing financially?
How do you handle your family if you're rich?
Let's say that your family, or your friends, are not the most financially secure or are very good with money. Then, you suddenly have $1 million. You know that if they find out, they're going to want some of it. What's the best thing to do when it comes to dealing with your family and your new money?
How much should you spend on travel?
If you suddenly had $1 million, it make sense that you'd want to see parts of the world that you've never been able to afford to get to in the past. Some people get addicted to travel, especially with first-class amenities. The money can go fast when you're traveling. How much are you budgeting for travel?
Are communication stocks a good investment?
We're not just talking cell phone stocks, but also cable companies, television networks, certain internet companies, etc. We've been talking to each other since the dawn of time, but with this world of regulations we live in, should you devote your money to the communication sector?
Is it best to get in on the ground floor?
We mentioned earlier if you bought Google on Day One, you'd have between 15-20% the money you invested. Sometimes, on the first day a stock is for sale, it's the lowest it will ever be. On the other hand, sometimes that's the most it's ever worth. Should you be investing in IPOs?
Are you going to admit it if things go bad?
So you ended up with $1 million in your lap, which you never thought you'd have in your life. There are a lot of decisions to make about where to invest and how much fun to have. Both can be good and both can be bad. Are you the kind of person who will learn from their mistakes with money?
