- Personal Finance
What to do with a million dollars
Predictable answers to the question, "what to do with a million dollars?", would range from taking a vacation to buying an apartment to donating to charity. You could very well go paint the town red, buy a Porsche, spend your nights away at expensive bars, use only Chanel perfumes and make Michael Kors your personal designer, but then don't expect your millions to last you a lifetime! Let's look beyond the obvious and figure out what to do with a million dollars (after taxes).
1) Invest and make sure you are set for life
If you go around spending your million dollars like crazy, you're going to be cash strapped pretty quickly. To make sure that you never have to take a second look at your savings account again, invest half or one fourth of your million dollars wisely. You could split your portfolio by investing in stocks, property, gold, art or just about anything that could replicate your millions, the legit way.
2) Start a business
Do you remember the time when you always wanted to start a restaurant or a coffee shop in your locality, but being cash strapped was an evergreen problem? With your million dollars, you can now start 2 restaurants, not one! There's a burning entrepreneurial spirit in almost all of us and you could use your a portion of your million dollars to feed and fuel yours – whether it is owning a pet grooming center, a cafe or a repair garage. Pick your passion!
3) Buy antiques and re-auction them
Now this sounds like fun, doesn't it? If you're thinking what to do with a million dollars, this can be a really good option for you if antiques are your passion. Antiques, art and other luxury items have great margins when sold. Imagine buying a vintage wine bottle, a film star's memorable or a painting of an upcoming artist who is all se to make it big. If you don't want to get into buying something so expensive, simply buy ordinary antiques and re-auction them. Sit back, relax and enjoy the multiples of your million dollars.
4) Network, network, network
Yes, this doesn't directly answer the question of what to do with a million dollars but look deeper into it and you'll know. When you have a lot of money, you can dress well, be groomed well and attend high profile events. This could be in any area of your interest such as business, movies, fashion, science, art, automobiles and much more. As they say "success breeds success". Only when you network in the right circles with the right kind of people, does your money have the chance to grow manifold. Observe where such people throw their money, get tips and ideas and strike a partnership or two with someone. Roaming around with folks in your neighborhood and thinking what to do with a million dollars is probably not going to help.
5) Own a farmland
Okay, this is easier said than done. For a lay person, buying a farmland may be faced with a lot of restrictions from the government, depending on which country you are from. But if there's any way you could get around to owning even a small piece of farmland or co-owning agricultural land with a legit farmer, it would be the perfect way of planning a million dollars. Growing veggies, grains, fruits, condiments, wine or exotic flowers can become your cash cow for life – with a little technical help of course!
6) Travel wisely
You have a million dollars and are not travelling? That is ridiculous. But if you're thinking of spending your million dollars by putting up your feet in a luxurious Caribbean resort, then you might want to rethink that idea. You may have your own ideas and personal tastes about how to vacation and can't be expected to go the shoestring and backpacking style. But why not considering going a little low budget and covering a significant portion of the world rather than blowing up your million dollars at a few luxurious spots?
7) Insure yourself and your family
If this sounds boring to you, it means you've probably not encountered young deaths in your family or shocking accidents. This is a good thing, of course. Buying sound medical, life, home and vehicle insurance policies may dish up heavy premiums for you per annum but will serve you well in times of unpredictable emergencies. This could also be a great gift for your loved ones – a security for life!
8) Indulge, but wisely
What's the use of having a million dollars but not being able to do things that you've always wanted to do? Betting on your favorite horse, gambling in Vegas, renting a Hummer for a week, buying a Leica camera or getting a full body exotic Asian spa treatment do sound inviting. Whatever your secret indulgence might be, make sure you spend for it but keep an upper limit for the same. Remember, the irony of indulgences is that they're one time memories that often turn out to be unworthy expenditures in hindsight!
9) Pay off your family debts
It's amazing how the excitement of planning what to do with a million dollars can completely make you forget the burden of your debts. Do you know that one of the worst things you could pass on in your family is personal or professional debts? Considering that your debts add on interest every single day, knowing what to do with a million dollars shouldn't be that difficult. And if you have money left after that, look at the other options in this article!
10) Educate yourself
A million dollars may allow you to buy yourself a degree from a dodgy university, but it will not allow you to buy real education. Assuming that you have some time on hand because you have a million dollars, step back and indulge in educating yourself if you haven't already. Take up college courses, vocational courses or even part-time degrees. Educating yourself will give you a broader perspective as to what you can do with your million dollars and make them multiply into many more!