Blogging Away Debt Our Journeys to a Debt-Free Life

by Susan Paige

A lot of us dream of having a million dollars. It’s exciting and fun to think of all the weird and wonderful ways we could spend this huge amount of money. It may be a reality for a very lucky few but there’s nothing wrong if we still aspire on what we will do if we end up having this amount of money within our reach.

So what will you do if you were given a million dollars right this instant? What would you spend it on first?

Most people would believe that having a huge windfall of money is the solution to all their financial woes. They think that they will be smarter in spending it since it’s way bigger than their usual paycheck, when in fact, people have the tendency to spend money in the same way regardless if it’s a huge amount or not. How you treat any amount represents the way on how you will spend even a large amount of money that will come your way.

You can have a guideline so that you can still be on track with your spending and won’t be surprised that one day, all your money is gone. According to a study, these are the top items where people would actually spend a million dollars in the US:

1. Pay off debt. This is a top priority for Americans. A lot of Americans are drowning in debt and this tops the list. It would feel great to finally pay off that student loan debt as well as other financial debts that have been hounding you for years.
2. Buying a home. It may be one of the most expensive purchases yet it provides financial security. Every one of us dreams of having their own home and once you get a huge amount of money like this, it is easier to finally fulfill this dream and make it a reality.
3. Pay off mortgage. If you already have a mortgage when you come by this windfall, you may want to pay off your entire mortgage so that you won’t have to think about this anymore. Be extra careful though and consult with your mortgage advisor or lawyer regarding the fine print of your contract, sometimes there is a charge if you do pay more than you should of your monthly mortgage amount. It would also feel like a burden was lifted off your shoulders since you don’t have to pay that amount for the remaining years you have to pay your house.
4. Purchasing a car. Having your own car and going wherever you want is also another American dream. Most families only have one car so it will be easier to travel or for whatever you will need to use your car for.
5. Donate to charity. People feel good when they share their “blessings”. Giving money away to charity or helping out a relative for their studies is a generous act – as humans, there are times where we want to feel good and this is perfectly fine. Remember though, to set a reasonable limit as to how much you’re willing to share. You wouldn’t want to end up going broke just by doing this.

How about you, what would you spend your million dollars on?