I’d buy a yacht, maybe…
Okay, I wouldn’t really buy a yacht, that would be too rich for me even if I had the money… Although I might rent one for a few hours or maybe even a day during some future (after becoming rich) vacation!
For me, the definition of rich would be: where the money from after-tax passive income equals my normal living expenses.
After I passed that magic threshold, I’d most likely plan for a big vacation with my family, perhaps a trip to Cancun or one of the islands in Hawaii, or some other place that we haven’t vacationed before because of the costs (or because of money reasons, lol).
After the celebration was over, I would start looking for a new job. Why? Because even though I’d be rich, I’d still like to be productive in the world. Yes, I would make less money, but the beauty of the new job would be that the money would be all profit. So I could literally afford to make less! How cool would that be!!!
If I couldn’t find my dream job, maybe I try my hand at becoming an entrepreneur? I do a little of this already, in previous years I sold items on eBay. Hopefully, someday blogging will make me some additional money.
Now for my list of things I would buy or do if I were rich:
- Continually invest my money to make more money.
- Consider and contribute to asset class diversification.
- Research and buy investment real estate.
- Buy, or build a house with 500 more square feet (than my current house) and with about 1 to 5 acres of land.
- Buy 2 used newer cars than what we have. (or at least 1 used)
- Contributed more to my kid’s college funds (529, etc)
- Buy a small used boat for playing around with.
- Save more money for cars to give to my kids once they become 16.
- Consider a pool or hot tube for the family.
- More activities for my kids (horse riding lessons, piano lessons, etc).
What would you do if you were rich today? Or if you are rich, what am I missing on my list?
-Don
“For me the definition of rich would be: where the money from after tax passive income equals my normal living expenses.”
Agreed. Hmm, if I was rich, I would rent out the condo, go with the gf and spend some time backpackiing around the world… for maybe 6 months to a year! After that, I don’t know what I would do next, but I doubt I would get back into the 9 to 5 grind. I would continue to blog, for sure.
Here’s to the dream!
Don –
What’s so great is your increase in wealth doesn’t seem to necessarily change the track you are already on. You’re still dedicated to your own retirement and kid’s future – which is great!
If we were rich, we’d:
1) Go on two or three big vacations (1-2 weeks) a year with friends or family and one big one with just us.
2) Still wait for my crappy car to die so I could get a Prius…I love my husband’s Prius and am jealous of him on a regular basis as I drive my leaky Aveo.
3) Buy a house or have a house built that is a one-story with at least 2200 sq. ft. and has the layout similar to the one we’ve come up with in our heads.
If we were uber-rich:
1) Definitely have the house we want built to our exact specifications.
2) Build the Houston Curling Club their own building much closer to our house.
3) Single-handedly fund Pughearts and make huge donations to the HSPCA and Meals on Wheels.
4) Take friends on our vacations that couldn’t afford to go with us when we were “just” rich. 🙂
@Kevin@InvestItWisely
I like your action plan for when you become rich too! Since I love to travel, that would be awesome!!!
With respect to work, I think I too would expand my blogging activities. But I’d also like to try and create some sort of business system that makes money and hires people. The sky would be the limit!!!
@FinEngr
Thanks, yes I’ve very conservative with my finances… Even if I were rich 🙂
Now if I were Buffett rich… I don’t know if I would still be as conservative or not. Most likely not 😉
@Budgeting in the Fun Stuff
Excellent plan! I think I would follow your plan and go on at least 3 vacations a year too! Too sweet!!!
Even uber-Rich you still keep your head about you, which is great!!! 🙂
supercars! you know like ferrari and porsche and lamborghini and a big benz and a penthouse. I would get these things only if i were super rich like a billionaire. Other than that i dont think much would change if i was to get a millionaire status. I think i would work more
I think the definition of rich for me would be to have enough money to cover my living expenses simply by investing it in a high yield money market savings account.
So, let’s see. The current interest rate is around 1.50% annually. Assuming that my expenses were $50,000 per year, I would need $3,333,333.
I definitely have more work to go before I am rich! 🙂
@kt- lifedividend
A supercar would be nice too. If I were to buy a luxury car, it would be on the cheaper side in comparison to the one you list. Maybe a Lexus, or a BMW.
I would work less, but probably still average more than 30 hours a week.
@My Personal Finance Journey
I was thinking similarly, but I would want an interest rate closer to 5%. I would be invested in bonds and dividend stocks.
At a 5% return it would require I invest an even million. Of course I would really want more than 1 million invested though to cover taxes and such.
Interesting, nearly all your choices talked about buying something or spending money. No where did you mention giving money to charity or to help the poor. I think that is why lotto winners can win millions and be broke in less than 5 years.. they spend and buy and have fun… until the money runs out.
If I were rich today….I’d still work, but my I’d be able to contribute more time for things I enjoy doing, but don’t necessarily get paid for…like tutoring and writing. I wouldn’t have to charge! I’d definitely continue saving money and expand my investment opportunities, buy an eco-friendly house with gray-water recycling, solar panels, and a windmill. I’d travel quite a bit (if only I could convince my husband to travel with me! He hates traveling.) I don’t really want a yacht, though my husband would want a boat and super car, we’d have to compromise on these items, because even if I were rich, I still wouldn’t like shopping! Of course, a cool new dutch bicycle would be nice. 😉
@Financial bondage
Actually, my thought process was what I would do after the milestone was passed. You have to reward yourself after passing milestones elsewise life is mundane…
As for charity, that’s already included in my currently life… that will continue as always.
Some of the lottery winners (not all, don’t believe the media sensationalism on this myth) lose their money because they don’t have any financial training or savvy. Most of us financial blogger do… 🙂
@Little House
Sounds like an very well thought out plan! I hope you become rich sooner than later just because of the cool things you would do from a green perspective!
Now I’ll have to go google “gray-water” recycling. 🙂 I’m guessing that you would channel used water to the lawn or something similar?
I would
Start a small little social entrepenureship business
Put solar panels and solar hot water on the roof
Oh an long long driving/cycling holiday. I’ll cycle my partner can drive the support car
@Benjamin Bankruptcy
Sounds like a great plan!
Being rich could enable us to do things like your holiday described! Woudln’t it be nice to be able to do such a things!
Benjamin Bankruptcy, good idea on those solar panels! If we had the money right now, we’d do that already since I want to pay as little to utility companies as possible and sun is something we do very well with here in Houston…
The installation costs are just out of our budget range…maybe with time…
@Benjamin Bankruptcy &
@Budgeting in the Fun Stuff
I follow solar stocks and some of them are pretty interesting! They keep getting cheaper and cheaper especially with some of the Solar Inks(Innovalight) and CIGS technology!
It’s be interesting to see where we are at in 5 years with respect to the manufacturing and installation costs.
I would pack up and travel the world. Go wherever my heart lead me. After I gave my 10% to the lord, of course.
@Denise
Admirable, very admirable 🙂
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For us to change how we’re living our life, we would need about 10 million dollars.
At that point we give up our hard-earned careers. We move to the SF Bay Area. We buy a 2000 sq ft 3 bedroom house (give or take) with a small lawn. We drop down to one car. We enjoy life and find things to keep ourselves occupied. There is much hiking. I get back on track with the volunteer work that has gone by the wayside since having a kid. Oh, and we have another kid.
@Nicole
Sounds like another great plan! Thanks for providing your unique requirements! Expensive cities raise the crossover point quite a bit!
I’ve been pretty amazed with the responses to my post. It seems like everybody has a great head on their shoulders, and seem to portray the “Millionaire Next Door” type of mentality!
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