How Will You Spend Your First Million?
What Would You Do With $1,000,000?
How often have you thought about what you’d do if you had $1,000,000? Becoming a millionaire is a dream for many but it isn’t that unrealistic anymore. Aside from winning lotto, there are numerous ways to make a million or more. Once you have a million, what would you do with it?
How to Earn, Save and Invest to have $1,000,000
The most secure way to become a millionaire is to do it yourself through saving and investing. Waiting for an inheritance or lotto win means you could wait your whole life and never reach the financial freedom you want.
Earning, saving and investing puts you in control of your money. Many people become millionaires within 30 years or in time for retirement through living frugally, saving and focusing on their retirement. This is not the way we want to do it in our family.
Those who have their own business and investments can do it in under 10 years, some as little as 5 or 7. You can find out more in the book We Should All Be Millionaires.
Successful businesses seem to be one of the quickest ways to become a millionaire. Investing wisely in indexed funds as per The Simple Path To Wealth is another simple way to do it. Or look at getting into a highly paid job, sacrifice a lot for a few years while investing wisely then retire as per Quit Like A Millionaire.
What Would You Do With $1,000,000 You Saved or Invested?
Once you have saved and invested to have $1,000,000, what would you do with it? If your plan is to use it in retirement, you will likely redraw on it over time until eventually you have nothing or you pass away.
Others, use it to invest more. Once you have $1,000,000 it is much easier to increase your investments quickly. Having a few million invested means you can get an income from the dividends and live quite comfortable without decreasing the value of your investment.
Meaning, you can live off a wage paid by your investments and still have over $1,000,000 stashed in investments. Doing this ensures your future and finances are safe.
What Would You Do If You Got $1,000,000?
This is very different to investing and earning $1,000,000 over a long period of time. Most people who suddenly get $1,000,000 e.g. through lotto or an inheritance, blow it. Having a plan for what you would do with a sudden injection of cash is important to ensure you make the most of it.
If we suddenly got $1,000,000, what would you do with it? We often play a game where we list out what we would do if we won $1,000,000 or $10,000,000 etc.
Be clear on how you want to spend the money. Below is an example from one of my clients. The crypto is because they are interested and if they suddenly got $1,000,000 they feel part of it would be fun money.
$27,000 to debt
$223,000 to develop the property
$500,000 to indexed funds
$250,000 to crypto
Of course, that doesn’t take into account taxes or other expenses. But when you are playing it as a game or pretending you don’t need to include taxes or you can say it is $1,000,000 after tax.
Manage Your Money Now
As is having a budget. If you aren’t in control of your money already and overspend, what makes you think you would manage $1,000,000 any better than that? Get
What Will We Do Once We Have $1,000,000?
This site is about our journey to $1,000,000 net worth. Our aim is actually much higher. $1,000,000 is the first goal. As mentioned, it would be used to develop our land, clear debt and invest. It is when we get to the higher amounts that what we really want becomes clearer.
We have a dream home in Vanuatu we want to buy which is a few million dollars. It’s where we want to get married and have forever. There is land here where we live in Australia we’d love to buy and develop to own a few specific businesses on.
Our desire is for multiple businesses, over $4,000,000 invested in shares/indexed funds/crypto and freedom to travel. Which means, once we hit $1,000,000 we will keep going.