How many of us have thought to ourselves, “If I only had a million dollars all of my financial troubles would go away…”?
A million dollars is a tricky amount of money to think about. While it can be life changing money, it’s probably not life changing enough to live off for the rest of our lives without some work
First, 10% of the one million dollar windfall would go to charitable causes, so there goes $100,000 right off the top.
Next, $200,000 would go into trust accounts for my two young children under the age of five.
I would give my parents $100,000 to use on whatever they want. My parents are pretty awesome people and this would be a good way to say thanks for all they have done for me.
An additional $100,000 would go into emergency savings. Since we are completely debt free including our mortgage, we won’t have to pay down any significant debt.
We’ll take the remaining $500,000 to start a buy and hold real estate business. We will set aside $100,000 to pay for the initial set up of the business and emergency reserves.