Day 26 – If I had A Million Dollars
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If I received $1,000,000 after tax how would I use it?
First and Very first I would tithe $100,000 to my current church.
I would use another $150,000 to pay off my house my car and the remainder of student loans and set the rest aside to pay for Seminary expenses.
So already after $250,000 spent so far I will have reduced my monthly living expenses by over $1,000 so I would really have no need to buy any cool little extras with the Million.
I would take the other $750,000 and set up a trust fund that would yield about 10% ($75,000/year) allowing my wife to never have to work again.
But what you’re interested in are the details of how it would change life, and the reality is that I would continue working and my wife would probably at least work part time once our children are in school.
So let’s look at life 10 years after this point assuming that I bring in $30k/year (I work for churches) and my wife only $15k/year part time. We bring in 45k and the trust is bringing in 75k so our total income is $120,000 or $10,000/month.
The monthly budget would look like this:
Housing (tax/insurance only) - $350
Utilities (electric, gas, water, trash) - $250
Transportation - $200
Food - $500
Entertainment (cable, movies, outings) - $200
Health (insurance, gym memberships, medicine/vitamins) - $1000
Tithe - $1,000
Miscellaneous - $250
Wait that’s only $3750, which is what 45k turns out to monthly. So I guess the rest is to be put either back to the principal of the trust so that it returns even more for future expenses or in savings toward things like building a nice deck, or remodeling our kitchen. While we are at it I might as well pay off my mom’s house with some of that extra.
*Some people have told me that expecting 10% return is unrealistic and not possible. I am aware of mutual funds that average greater than 10%yield, in fact I manage a faux mutual fund in a game and the fund I manage is up 15%.
As Always thanks for your time and giving this a read. If you enjoyed it share it with friends, you can do so easily with one of the buttons below. I pray that you will embrace life in the Love and Grace offered to you through Jesus Christ, and that you will always remember Jeremiah 29:11. – For I know the plans I have for you declares the Lord, Plans to Proper You and not for harm, Plans with Hope for the Future.