What would you do with $1 million?

[gooner]

Spend $900k on champagne, cocaine and women. And waste the rest.........

 

[trainspotter]

Spend $900k on champagne, cocaine and women. And waste the rest.........

Charlie Sheen eat your heart out ...... DITTO !

 

[Market Depth]

Not really allot of money these days. So a good start would be to make it turn into 10 million

 

[grandia3]

bet it on the "0" on the roulette, pray, and get $35million

 

[Sir Osisofliver]

Now this post points up the truth (imo) that once you have enough money, more is superfluous unless you have a particularly altruistic nature and want to give it away.




And in the interests of marital harmony, a throne to that value should have some automatic sensor which lowers the lid after a male has used it. No more whining about "why don't you put the seat down?"

Seriously, though, Sir O, would you agree with my comment above that, once you have enough money, more is pretty much meaningless?

Julia its a solid gold toilet seat - I'd need muscles like Arnie to lift it in the first place so it doesn't need an automatic sensor, I just have to aim well.

Yeah Julia, as I've said before, money only matters when you don't have it. I tend to avoid the trappings of wealth.

Having a million fall into your lap with no effort expended to get that million would most likely mean for the majority of people that they do not respect it. They are much more likely to blow it because they haven't earnt it.

Example I can probably afford any car on the market (I might need to free up some cash if it's particularly expensive vehicle but still - I could do it).

I did buy a car recently (actually I bought two and upgraded the Missus' car as well coz buying in bulk has always worked well for me and when the car salesman realizes he might sell two cars instead of one you can screw them on the margins - especially around end of year runout sales.

My cherished '92 Ford Festiva which ran on the smell of an oily rag was starting to cost more to resolve issues than the car was worth (In fact it was probably worth more when I filled the tank up).

So what did I buy?

I'm now the owner of a three door Toyota Yaris. Maybe when I retire I'll buy something expensive.

Cheers
Sir O

 

[tech/a]

Seriously, though, Sir O, would you agree with my comment above that, once you have enough money, more is pretty much meaningless?

As Sir O has answered I thought Id add.

Not meaningless but generally a consequence of whatever it is that you have in place to get you there in the first place (If you have earnt it and not WON it---which is the thread topic).

Truth is that generally it can be a lonely existance from the point of view that few friends can keep up with you.
We love travel and rarely get the opportunity of travelling with friends---which is enjoyable if your with people you know.

Often friends find it difficult to cope with other friends wealth---often "thinking" they need to compete---which isnt the case.
But have seen the girls all racing off to get the latest fashion because "Julia's" just been to Kuala Lumpa Shopping---if you get my gist.

I drive the same vehical as the rest of my staff and have friends who simply MUST have the Latest Merc or Audi---Mind you really do like the Audi---

 

[Julia]

Sir O and Tech, interesting comments about the cars. You might recall that a few months ago I'd decided to buy a 'luxury' car. Didn't need it but could afford it and just felt a bit self indulgent. That sounds really precious I know, but after many years of being pretty frugal, and given I was driving a 1990 vehicle, I thought it was time to splash out.

So I did all the chasing around with Mercedes and BMW, hampered somewhat by there being no local dealership.

Some very good deals were being offered.

But when it came to the point I just couldn't rationalise spending $60K or so on a car which would do about 1000kms a year, essentially going shopping, and which would have the dog in the back shedding hair and drooling down the windows.

I still don't know whether my ultimate reluctance to spend the money means I'm just mean, or whether I'm just not into wasting money.

I bought a 3 year old Holden Astra which contains the dog beautifully in the tail section and is reasonably pleasant to drive, entirely adequate for my purposes.

So, would I buy the luxury car if that unexpected million landed in the bank a/c?
Probably not because the decision wasn't about money.

 

[KurwaJegoMac]

I still don't know whether my ultimate reluctance to spend the money means I'm just mean, or whether I'm just not into wasting money.

I think you pretty much answered your own question:

But when it came to the point I just couldn't rationalise spending $60K or so on a car which would do about 1000kms a year, essentially going shopping, and which would have the dog in the back shedding hair and drooling down the windows.

I bought a 3 year old Holden Astra which contains the dog beautifully in the tail section and is reasonably pleasant to drive, entirely adequate for my purposes.

If the car is pleasant to drive and adequate for your purposes, what is the point of paying a premium?

I remember reading an article about the Stig one day (for those that don't know, the Stig is a professional driver who stars in the U.K. show Top Gear - It hasn't always been the same person, sometimes it's a rally driver or F1 driver and was once even Michael Schumacher for a few weeks)

Anyway, point of the story is that this professional race car driver owned a Honda Accord despite earning over $200K per year. He said pretty much the same thing as you did Julia - "why should I buy a more expensive car when this one is more than adequate for my needs and is pleasant to drive."

In the end I'd rather spend the premium on a nice holiday, some sort of new experience - even shout my family a trip. That'll bring a lot more joy and happiness to one's life than a prestige car.

At least in my opinion

 

[waimate01]

I read somewhere that most rich people drive the sort of cars that poor people think only poor people drive. And some poor people borrow money to drive the sort of car that poor people think only rich people drive.

Many poor people are perplexed: "man, if I was that rich, I wouldn't drive a humble car like that. I'd buy myself a <highpricecar>".

What the 'poor' people miss is the causative relationship. It's exactly because the 'rich' people are happy to drive humble cars that they became 'rich'.

The choice of car is not a product of wealth-level; it's the other way around.

 

[Knobby22]

I like Astra's, good choice.
I personally drive a Ford Focus.
I know its a sensible choice but think what you can spend the money on - 12 months in a tropical paradise in Fiji for instance - and still have money left over.

I personally couldn't shell out for a Mercedes even if I had a spare mill. Just seems silly.

I have some young Asian workmates, they all drive old Mercs and BMWs. They tell me its their social scene and they wouldn't be caught dead driving Hyundai, Holden or even Fiat.

My neighbour drives a huge family Honda and a brand new convertible Merc. Two cars! No kids and her husband has a car too. I think it is an attempt to be happy but it makes me feel sad for her.

It's just how it is.

 

[GumbyLearner]

I like Astra's, good choice.
I personally drive a Ford Focus.
I know its a sensible choice but think what you can spend the money on - 12 months in a tropical paradise in Fiji for instance - and still have money left over.

I personally couldn't shell out for a Mercedes even if I had a spare mill. Just seems silly.

I have some young Asian workmates, they all drive old Mercs and BMWs. They tell me its their social scene and they wouldn't be caught dead driving Hyundai, Holden or even Fiat.

My neighbour drives a huge family Honda and a brand new convertible Merc. Two cars! No kids and her husband has a car too. I think it is an attempt to be happy but it makes me feel sad for her.

It's just how it is.

I agree Knobby. I wouldn't shell out for an expensive car if I had a mil to throw around either.

People who drive new expensive motor vehicles are generally UAWS (Under Accumulators of Wealth) as opposed to PAWS (Prostigous Accumulators of Wealth). All hat no cattle types. Each to their own.

 

[Julia]

I read somewhere that most rich people drive the sort of cars that poor people think only poor people drive. And some poor people borrow money to drive the sort of car that poor people think only rich people drive.

Many poor people are perplexed: "man, if I was that rich, I wouldn't drive a humble car like that. I'd buy myself a <highpricecar>".

What the 'poor' people miss is the causative relationship. It's exactly because the 'rich' people are happy to drive humble cars that they became 'rich'.

The choice of car is not a product of wealth-level; it's the other way around.

Interesting post. Makes sense.

 

[tech/a]

I agree Knobby. I wouldn't shell out for an expensive car if I had a mil to throw around either.

People who drive new expensive motor vehicles are generally UAWS (Under Accumulators of Wealth) as opposed to PAWS (Prostigous Accumulators of Wealth). All hat no cattle types. Each to their own.

So
I guess when I fly long haul Business class is a waste??

 

[jimmyizgod]

i dont know, i know plenty of people who earn quite a bit of money and drive mercs, bmws, top of the line lexus suvs etc etc. as a person into cars myself (even though i dont own one - i have a work ute) i can see why they shell out for such expensive cars, and its usually luxury over performance/handling/cache.

most people buy them on leases as well, and once the 3 or 4 year lease is up, just get another one.

plus you also have to think if you get a new ford laser then sell it 4 years down the track you might get 10k for it, but if you get a new bmw m3 and sell it 4 years later you will still get 60-70k.

imo anyways...

 

[KurwaJegoMac]

I agree Knobby. I wouldn't shell out for an expensive car if I had a mil to throw around either.

People who drive new expensive motor vehicles are generally UAWS (Under Accumulators of Wealth) as opposed to PAWS (Prostigous Accumulators of Wealth). All hat no cattle types. Each to their own.

If you have $1 mill in investments earning you say 10% a year - then buying an expensive motor vehicle worth 100K is just not worth it. But if you have $10 mill earning 10%, then buying a $100k car is hardly that expensive or 'unwise'.

In the end it's all relative. There are certain things that one must buy and you remain poor if you buy stuff that is outside of your affordable range. Buy stuff within your means and you'll become wealthy eventually. Buy stuff well below your means and you'll accelerate your wealth faster, but compromise your standard of living.

I would personally rather forego expensive cars and stuff at a premium for a few years to let that money work for me and make my life easier later on. Each to their own - just because someone buys something expensive does not straight away mean that they are under accumulators of wealth.

 

[Julia]

So
I guess when I fly long haul Business class is a waste??

No, no, no! I reckon it's absolutely worth the extra cost. If you can afford the destination with hotels etc., you can afford the comfort of not being squashed between a couple of obese cretins that can make the trip a total nightmare.

But personal taste again. We're all going to have different priorities.

I'd rather have fewer holidays but when I do then I want to fly business and stay in 5 star hotels.

 

[Gringotts Bank]

Some posters are assuming that having an expensive car is all about impressing others.

There's also the love of driving high performance cars at a decent speed. I would buy an Aston Martin, five sets of tyres and a day's worth of track time at Philip Island and thrash the ####### out of it.

 

[sinner]

1 mil, easy.

Buy $500k worth of rural land near fresh water (either one really really awesome property or 5 untouched blocks).

Buy $300k productive business in Sydney or Melbourne CBD. Bakery? Milkbar? Newsstand? Whatever.

Buy $100k worth of gold and various sovereign bonds (50/50).

Give $100k charity. I would be thinking for a donation of this size, giving to either an underfunded hospital or indigenous education.

Done.

 

[ENP]

If I had $1 million...

I'd give $50k each to my brother, sister and mum and dad. I'd invest it into buying my own home for roughly $300-400k and get flatmates in to pay me rent.

Then I'd use the remaining $400-500k to invest in high quality shares that pay a dividend or in rental properties. I'd continue to work as I quite enjoy my job, 4 days a week instead of 5 and I'd start coaching a school sports team.

I'd take one overseas holiday a year.

I'd keep my 1992 Nissan Bluebird, keep my crappy clothes and keep buying budget brands at the supermarket.

Buying the latest gizmo doesn't do much for me. I'm 22 years old.

 

[GumbyLearner]

If you have $1 mill in investments earning you say 10% a year - then buying an expensive motor vehicle worth 100K is just not worth it. But if you have $10 mill earning 10%, then buying a $100k car is hardly that expensive or 'unwise'.

In the end it's all relative. There are certain things that one must buy and you remain poor if you buy stuff that is outside of your affordable range. Buy stuff within your means and you'll become wealthy eventually. Buy stuff well below your means and you'll accelerate your wealth faster, but compromise your standard of living.

I would personally rather forego expensive cars and stuff at a premium for a few years to let that money work for me and make my life easier later on. Each to their own - just because someone buys something expensive does not straight away mean that they are under accumulators of wealth.

That's good advice.

Do note that I did use the word generally when equating expensive car ownership with UAWS and PAWS.

I think it really depends on occupation as well. If someone works in say real estate, they would probably buy an expensive car to take prospective buyers to the location of the sale. Also, a lot of the highly paid could probably spend $4000 on a suit. I certain wouldn't envy anybody grossing 250K a year with huge outgoings (eg. an expensive lifestyle, little savings, huge mortgage, brand new beamer etc...).
On the other hand there are plenty of people who earn half that and dwarf such people when it comes to net worth. I know plenty of young professionally qualified people that could fit into either category. The smartest are the ones that aren't over-leveraged and working their guts out in a profession that requires them to 'keep up appearances'.

A good book on topic that cuts through a lot of the myths/assumptions/bulldust about wealth is The Millionaire Next Door: The Surprising Secrets of American's Wealthy
By THOMAS J. STANLEY, Ph.D and WILLIAM D. DANKO, Ph.D

http://www.nytimes.com/books/first/s/stanley-millionaire.html