$50000 (Haven’t You Always Wanted a Monkey)

August 5, 2008 at 2:06 pm 5 comments

So My Investing Blog Is having a contest:

If you were given $50,000USD (tax free) today, what would you spend it on?

If you go enter you could win up to $150.

I know what I would do with the $50000, and it’s pretty much the same thing I’d do with the $150. I would add it to my savings.

Well, with that much I would use part (about $2000) to fund my emergency account. And come to think of it, would probably use $5000 for a Roth IRA. The rest I would save for two years. I think in two years with that plus what I have now and the interest, I would be ready to buy an apartment.

Even if I magically had enough money before two years were up I don’t think I’d be ready to buy an apartment. I need to know things like if I am likely to get married anytime in the next 5 years, if I am likely to have kids (not very), and if I’ll be working from home and therefore want a home office.

I believe in not buying a bigger apartment than I need. Even if I could afford it, I don’t want to spend more on a place I’ll theoretically grow into if I have no plans to grow that way. I’d rather use that money to be in a nicer area, have nicer appliances, etc. I could use the money to pay off the mortgage faster. So until some big questions about life and career are a little more answered for me, I am not buying an apartment.

In a way it’s good. My goal to buy my own place isn’t just about saving. It is also a goal to have my life figured out. The way I am going I won’t be ready on either front in two years even, but I believe if one changes and I am ready, that will help me get my act together on the other.

What would you do with that money?

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Entry filed under: goals. Tags: .

Starting to Care About Money Caring About Money – Part 2

5 Comments Add your own

  • 1. Adiel  |  August 5, 2008 at 2:58 pm

    I’m not going to lie, I’d put a most into paying off debt and savings, but I would leave some aside for shopping. 🙂

  • 2. Ali  |  August 5, 2008 at 5:10 pm

    I’d probably put ten thou away and spend the rest on my honeymoon, new transportation, braces, stuff that can improve my quality of life RIght Now. For me, $50,000 doesn’t really mean much in terms of lifetime savings and my expected income will increase greatly in a short time, so the immediate gratification and nice emergency fund would be the most useful.

  • 3. Dena L.  |  August 15, 2008 at 1:54 pm

    If I had $50,000 I would pay off all my debt and my boyfriends credit card that I maxed out. We would also be able to put a down payment on a house and finally get married like we planned to (5 years ago) when we pay off our debt. We would also be able to start our family with no true money worries. If you can help me get a free $50,000 in cash then all my boyfriend and my dreams would come true.

  • 4. debtfreesaver  |  August 15, 2008 at 5:52 pm

    sadly, I don’t actually have $50,000 to give away. It’s funny how the amount means different things to different people. It’s not even about income, it’s about what your goals and where you are on them I think.

  • 5. Ali  |  August 21, 2008 at 12:40 pm

    I agree. $50,000 is a lot of free money, but if you’re saving for something that costs $800,000, it doesn’t get you as far as if you’re saving for something that costs $100,000, regardless of your current income.

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