If $2 million miraculously came crashing down from the sky and into your arms, what would you do with it?
Perhaps you would set it aside for retirement. Or, maybe you would just flat out retire on the spot! There are other things you could do with the money, such as set aside money for unforeseen health emergencies, for college expenses for the kids, cars, etc. Maybe you would get a new house, and pay all cash!
There is a lot one could do with $2 million!
For some, according to this article on CNN Money, it means buying a home theatre. That’s right, $2 million for a home theatre.
Apparently, some people get competitive and might feel the need to keep up with the Joneses. In the general population I think there are probably many people afflicted with Big Hat No Cattle Syndrome, but I doubt that’s totally accurate for the theatre buyers. I mean, you have to have a fair amount of cattle – err, money – to be able to spend $2 million on anything!
Must be nice to afford such a luxury, I have to admit. Rich person problems, right?
Back to what else someone could do with the $2 million. Here are some ideas:
- Invest the money and get a modest 5% annual rate of return, which would result in over $5 million after 20 years
- Take the $2 million and spend $50,000 of it per year for the next 40 years (simple example assuming no investments)
- Have your kids’ undergraduate and graduate school tuition paid in full, allowing them to pick the right schools and not be constrained by costs…and have money left over
- Invest part of the money, and take the rest and save the rest for an amazing home, and future taxes, repairs, etc. associated with that home.
- Use it to fund a dream business that you’re passionate about
- Live a modest lifestyle and jump right into location-independent financial freedom
- Give a portion of it to a cause that it is dear to you, where you can make a difference
You get the idea.
I absolutely don’t begrudge anyone who has the money to afford an amazing theatre. If a person had $100 million, what’s $2 million to worry about? There’s still $98 million left, and you can have the toy of your dreams in the form of that theatre. Financial achievement is a good thing! I’m okay with the reality that I’m thinking and writing about more cost-effective ways to save money on movies, instead of buying a multi-million dollar home theatre.
What I simply find interesting is how the question of what to do with extra money would be answered very differently by people depending on their financial circumstances, and their own life circumstances.
My Questions for You
What would you do if you instantly got $2 million?
Would that home theatre idea jump to the top of your wish list? 🙂
How would you allocate that money to different savings buckets or expenditures?