I’ve been persuaded to take part in a ‘thought experiment’, where people give their own take on the same thought/idea or scenario.
Please check out Saving Ninja’s post which explains in more detail.
So here’s the first scenario:
What would you do if right at this very instance you got given £1 million? This could be from a lottery win, an IPO, a scratch card, you name it. No tax needs to be paid, it’s just been plopped directly into your run-of-the-mill bank account.
Lucky me! 🙂
Ok, off the top of my head, I would….
…be Financially Independent and would be able to retire early immediately, but I wouldn’t, not right away anyway. It’s a lot of money, I’d like to think things through properly so yes, I’d still go into work! I know for a fact that I would not be mentally ready to give up working just yet.
…remain anonymous and tell only my immediate family how much I had won and tell my close friends I had won a ‘large amount’. Why not tell them the exact amount? I’m not sure – never really discussed money with my friends so not really sure how they would react to be honest.
…put aside £300k to be gifted to my immediate family – all members of my family are already a lot wealthier than I am but I would still want to share my winnings and good fortune.
…put aside £100k to be gifted to my close friends. No idea how I would do this but in whatever tax friendly way I can do it, be it paying for their holidays, etc.
…put aside £100k for specific charity needs. Rather than throwing it into a charity pot, I’d like to pay for stuff like school equipment, that kind of thing
…use the remaining half to buy a property which would ultimately be my primary residence, perhaps buy another small property to rent out and invest the rest in boring index trackers to enable me to have a ‘fat’ retirement!
…be lying if I said I wouldn’t change because that kind of money all of a sudden is life-changing, for me anyway. I would probably naturally become less frugal but I think I still wouldn’t be wasteful or flash with my money. I wouldn’t buy a new car, as there’s nothing wrong with my current one, although I could realistically consider a new electric car as my next motor.
…start looking at holidays to Japan, Australia, New Zealand and the USA!
Reading back on the above, there are probably some tweaks and changes I would make or add but the point of the exercise is to not dwell on your answers and just write what comes to your mind immediately.