What would you do if you suddenly walked into a lot of money?

[diablo75]

This is just a hypothetical question I wanted to toss out and see what people would say. I'm going to be starting a new job soon and it comes with a hefty pay check (but I have to move 6000+ miles away for at least 6 months). So I'll have time to ponder this question before I decide what to do.

Among the things I've thought about doing once I get back to the states include:

-Paying off my house (or refinance), which is worth about $60,000 and is on a 30 year mortgage that would have me shell out a total of twice that amount by the end of it's loan term due to interest. But I can't decide if it would be better to pay it off early and sell later, or sell it as soon as possible, combine what I get with what I've earned and move into a slightly nicer place (I don't want a mansion by any means at all or anything even slightly overkill; just about anything would be better than living next to my next-door neighbor whose entire property is cluttered with junk and dead vehicles).

-Investing money in the stock market. I have never done this and for the most part have discarded the notion of buying stocks as being just as risky as gambling on horse races. But I can't help but notice that MOST stocks, in a wide view of the last couple of years, are very gradually trending upwards and investing in a key handful of them might make me a lot of money. Or not.

-Buying a little more formal education. Currently all I have is a technical degree in computer repair and networking from a local state sponsored vocational school (and it was worth every cent paid in tuition) that prepared me for A+ and CCNA certification tests which I unfortunately never bothered taking after I graduated. At the moment I'm not interested in going after an associates or bachelors degree (because it all seems way overpriced and superfluous to me and my interests) and would rather go for more technical certificates since I'll have the time to focus and money to pay for the tests. I'm leaning towards ethical hacking/Linux security, but who knows.

-Invest in my own freelance business. I've been doing a freelance gig on the side fixing computers for a couple years now. A large majority of my clients are repeats who enjoy my quality of service, and I enjoy the smile on their face when I'm able to help them at a fraction of what they would have paid geek squad to do half the job I can usually do. I could easily just place ads in strategic locations and keep myself busy making house calls and being paid well to do it. I've even got a fill-in ready to make house calls for me while I'm away from home, so the boat won't sink very much.

I haven't really thought of much else to do... and that's probably a good thing. I'm not hell bent on buying an expensive flashy car or stuff like that, but trying to find the best way for me to invest in my long term future.

[fatality_uk]

Clear all your debts first thing. Servicing debt is a mugs game. One of the reasons the UK economy is in such a mess right now is that personal debt here is massive. Apart from my mortgages, I don't have loans, credit cards, store cards or any other debts.

[starcannon]

Get completely debt free; I'm with you, I'd pay my mortgage off so fast it'd make a bankers cigar spin. I'd really dig being down to just the monthly cost of life bills like water, garbage, power, phone, cable.

[Tipped OuT]

Burn it for warmth.

[starcannon]

Burn it for warmth.
Don't forget to light a cigar with it.

[fatality_uk]

Oh and SAVE. I know savings aren't very sexy, but right now, people with savings are weathering the economic crisis much better than those without. A good rule of thumb is to have a minimum of three months salary in your current/cheque account. That way if anything unexpected happens, you are not being forced into making rash decisions.

After that, if you want to make investments, a maximum of 8% of you disposable monthly income should go into investments, stocks shares, bonds etc. Unless you want to spend your entire day looking at the Bloomberg ticker, don't invest more than you can afford to lose. Really!!! There's always stories of Joe from accounts making $100,000 investing in ABC inc. and making a killing, but he is the 0.001% of people that do.

[Rainstride]

This is just a hypothetical question I wanted to toss out and see what people would say. I'm going to be starting a new job soon and it comes with a hefty pay check (but I have to move 6000+ miles away for at least 6 months). So I'll have time to ponder this question before I decide what to do.

Among the things I've thought about doing once I get back to the states include:

-Paying off my house (or refinance), which is worth about $60,000 and is on a 30 year mortgage that would have me shell out a total of twice that amount by the end of it's loan term due to interest. But I can't decide if it would be better to pay it off early and sell later, or sell it as soon as possible, combine what I get with what I've earned and move into a slightly nicer place (I don't want a mansion by any means at all or anything even slightly overkill; just about anything would be better than living next to my next-door neighbor whose entire property is cluttered with junk and dead vehicles).

-Investing money in the stock market. I have never done this and for the most part have discarded the notion of buying stocks as being just as risky as gambling on horse races. But I can't help but notice that MOST stocks, in a wide view of the last couple of years, are very gradually trending upwards and investing in a key handful of them might make me a lot of money. Or not.

-Buying a little more formal education. Currently all I have is a technical degree in computer repair and networking from a local state sponsored vocational school (and it was worth every cent paid in tuition) that prepared me for A+ and CCNA certification tests which I unfortunately never bothered taking after I graduated. At the moment I'm not interested in going after an associates or bachelors degree (because it all seems way overpriced and superfluous to me and my interests) and would rather go for more technical certificates since I'll have the time to focus and money to pay for the tests. I'm leaning towards ethical hacking/Linux security, but who knows.

-Invest in my own freelance business. I've been doing a freelance gig on the side fixing computers for a couple years now. A large majority of my clients are repeats who enjoy my quality of service, and I enjoy the smile on their face when I'm able to help them at a fraction of what they would have paid geek squad to do half the job I can usually do. I could easily just place ads in strategic locations and keep myself busy making house calls and being paid well to do it. I've even got a fill-in ready to make house calls for me while I'm away from home, so the boat won't sink very much.

I haven't really thought of much else to do... and that's probably a good thing. I'm not hell bent on buying an expensive flashy car or stuff like that, but trying to find the best way for me to invest in my long term future.

if you are asking what should you do, then like the other said pay off all your debt. DO NOT invest in the stock market, its a rigged game. chances are you will lose.
i would suggest buying gold, as the value of money goes down the value of gold stays the same. you could make money over time just by having it.

[Giant Speck]

First and foremost, I'd put a large portion of it in savings.

Since I don't really have any debt of my own, I'd use the money to pay off the debt of my parents, pay off their car payments, and pay off their house. After doing that, I'd hire professionals to fix up the roof, and do a lot of repairs to their house.

I'll admit, after using the money to help my parents, I'd spend some of it on myself. Who wouldn't?

Finally, I'd give a portion of it to numerous charities.

[uberdonkey5]

he he. Well, what you should do with your money depends on the market. In the UK interest rates are exceptionally low and house prices have dropped, so trying to purchase property which is a bargain would be good. Shares always seem to under-perform now! Investing in the stock-market may be good, but I would be wary of agents.. most of them take a cut regardless of whether the value of shares goes up or down, so they don't take as much care in selecting shares as you would personally.

Basically, making more money comes from investment and (to some extent) risk. People with lots of money tend to spread risk i.e. a bit of money in high risk, high payoff investments, but most in something more stable.

Finally, you have to think what you want the money FOR. Money is a tool to achieve other things. Being rich doesn't make someone happy... but spending money on things you enjoy or feel are worthwhile does! Setting up your own business sounds a super idea, and may avoid having to pay alot of tax too!

Well, good luck!

If I had alot of money I would invest it for security in the future, and maybe go on some awesome surf trips with my pals.

[heroidi]

I would pay mu father's loan in the bank and them i would buy a Lappy or a Notebook (H)

[Einsamkeit]

Hmm
I'd pay hypothetical debts I might have (not that I have any), than put everything into savings and let it sit there waiting to be needed.

Since I'm quite "against" the whole stock market system, I wouldn't invest, but that's just me.

Oh and if the amount of money is substantial, I would use 40$ to buy a nice bottle to have something to drink every now and then.

[sim-value]

I would Bring out Ubuntu Branded Devices (From Phones to Desktops)

And Market them like Apple with an Own corner in each major PC shop...
They would also of course come with a Modified Version of ubuntu with all legal codecs ...

/me

[SuperSonic4]

I would wonder what the heck I tripped over/walked into (A)

Clear personal debt and invest in either chemicals or pharmaceuticals. People will always need drugs, moreso if an epidemic were to occur.

[KegHead]

Hi!

Move to the Mexican Rivera.

KegHead

[mousestalker]

Put an icepack on my suddenly bruised and aching body parts.

;)

[ugm6hr]

Perhaps not the best forum to get financial advice!

Nevertheless:

1. Interest rates are very low (in the UK - uncertain re: US), so paying off a variable rate / tracker mortgage may not be the best use of a lump sum. Any other investment can serve as an endowment with a view to paying of your mortgage in 10 years.

2. The stock market has been outperformed by property in recent years, and may appear to be as sensible as gambling, but it has routinely outperformed property, cash, bonds, commodities etc over 10 year periods. Remember there are also options for overseas investments through a variety of asset management firms; the Far East and South Asia provide higher risk, but greater potential returns.

3. Consider a spread of risk in your investments. While "risky" investments are not in the same category as gambling, the recent bankruptcy of previously large corporations in the US and UK (and perhaps elsewhere) shows that you need to be prepared.

4. Keep some money available for instant access in case of troubled times in the future.

5. Starting your own business is an alternative investment in yourself. If you are prepared for the hard work involved, that is reasonable. If you are committed to this option, then make sure you follow-through on it.

[joyneo04]

i would first make the arrangement of treatment of my father who is a cancer patient and my mother who is a bronchule asthama patient and then i would arrange for my study relating to net programming.

[TheLions]

[joke]
go in casino and put everything on black!
[end joke]

[DemonBob]

Pay off my debts. But not in one big chuck all at once. From talking to creditor's i've learned that paying a debt off at once, does not help your credit. Paying it off faster does though. So i would setup accounts, one per debt, that would have enough money to pay each debt off in 12-24 months.

If i had a 60k debt, i'd be paying 5k a month plus the normal intrest gained in that month. It will take a little bit more money, doing it this way because of the intrest still accuring, but my credit score will rise, and then i'd be able to get a Black AMEX just for the hell of it. :D http://en.wikipedia.org/wiki/Centurion_Card

[pwnst*r]

pay off your debts. i love being debt free (other than my mortgage)

[dragos240]

Donate half of it to the linux foundation, and depending on how much is half of that, either buy a nice sys76 laptop/netbook or something else.

[Danny Dubya]

Hoard it all away, run as far from civilization as possible, and become a hermit that lives a modest life of freedom that is hardly ever infringed upon. A non-profit I deem worthy can have what's left of the money when I die.

[sports fan Matt]

Saving it for rent and such and investing the rest ..evem though the stock market is a tad iffy at best

[steveneddy]

The very first thing I would do after coming into a large sum of money would be to......

[diablo75]

The very first thing I would do after coming into a large sum of money would be to......

I hate Zen riddles...... :p

[MaxIBoy]

First, get yourself out of debt. Then, start saving money and retire young!

[Sporkman]

I'd grab my nose - ouch!

[pbpersson]

I would most likely have a massive heart attack and die on the spot with no time to think about what do to with all that money ;)

[lethalfang]

Depending on how much is "a lot."
I'd first pay off the mortgage.
If there's any left, I'd save some and invest some in the stock market.
I'd donate some money to GNU and FSF, but I probably won't donate as much as "half," maybe 10%.

[Fresno Property Managemen]

Pay off those credit cards, pay off that student loan, and buy a house. :)

[HappinessNow]

Wallpaper my bathroom walls with it

[yabbadabbadont]

I would use it to crush my enemies, see them driven before me, and to hear the lamentation of their women!



(and I'm pretty sure that this topic is a dupe as I'm sure I've given this answer before...)

[geekygirl]

Depending on the amount...

Buy a First Class ticket...no make that hire myself a private jet and get myself to Florida ASAP to be with someone ;)

Then I would pay off my University debt to the governement (oh how I love HECS..not), and move myself to Florida hehehe

Whatever is left would be invested, donated, spent, provide a comfortable living etc but it depends on how much was a lot of money I guess :p

[tricks of stock traders]

I would invest it in Gold right now. In a few months, I would buy up home builder stocks and hold for the next 5 years and double my money. I would then put it into a dividend fund and live off the dividends and never work again. :D

[vpadro]

Would iniciate my web hosting company and buy a big home datacenter. :D

[Dullstar]

Considering I'm young and don't need to worry about finances other than my allowance/birthday money and current total...

Buy a MacBook.

[Bezmotivnik]

Hoard it all away, run as far from civilization as possible, and become a hermit that lives a modest life of freedom that is hardly ever infringed upon.
That's pretty much what I did.

The suburbs here are pretty remote in terms of civilization after fifteen years in San Francisco and NYC before that. :(

I inherited a house and a little money, retired, fiddled my disability pension for all it was worth, went cash-only black and pretty much dropped off radar.

I know nobody in this city except my next-door neighbor. I am only reachable by voice message or email or Skype. I own no credit cards. I have no ($0.00) debt. I have decent medical coverage. I own the house outright. I pay virtually no taxes except a pittance on the house (thank you, Prop 13!).

I've established myself as a legal pauper, but have large amounts of cash in the safe.

I buy a lot of music gear dirt cheap when I see a deal and flip it at a profit when I get bored with it. I make far, far better returns on that than any of my friends do from their "legitimate investments," and get to rock with it in the meantime. Try that with your feeble mutual fund. :wink:

I built myself a little home recording studio in a back bedroom (where I am at the moment with the cat in her little bed I made for her up on the console under a studio monitor -- so she can "help" when I'm recording).

I grow nice vegetables in the garden and do the home handyman thing (just dug and installed a new sewer line, doing a job estimated at $8000 for about $130 in materials).

Could be worse!


A non-profit I deem worthy can have what's left of the money when I die.
I haven't found one yet that met that initial criterion.