What Would You Do With an Extra $100,000

What Would You Do With an Extra $100,000

Every year Money magazine has an issue or a specific article or two dedicated to the idea of what you would do with an extra $1000, $10,000 or $100,000. It is easy to think about specific things we would do with an extra $1000 or $10,000. In fact, most of us might actually do one thing. For example, if I had an extra $1000 I would probably just save it or pay down some debt. I wouldn’t divide up the money into different things.

If I had an extra $10,000 I would probably do something similar. Invest or pay down debt.

However, when it comes to $100,000 or even $1 million I would definitely do multiple things.

So I thought I would do a bit of a thought experiment. What would you do with an extra $100,000?

Here is my list if I had that money right now:

  1. I would max out my Roth IRA and my wife’s IRA–$11,000
  2. I would pay off our car: $17000
  3. I would put $50,000 into the stock market (e.g. a taxable account)
  4. I would have some fun. Most likely, Mrs. ROB and I would take a nice vacation or something–8-10k
  5. I might use the rest to shore up our emergency fund-$10-12K

Some people might use it to pay off their house or other debts. However, because we are doing PSLF and we have a low interest rate on our mortgage it doesn’t necessarily make sense to pay down those debts because we wouldn’t totally pay it off so I would rather get rid of stuff that would totally pay off the debt or invest the rest.

So what would you do with this extra dinero? How would you divide it or would you just put one big lump sum on something specific?

6 thoughts on “What Would You Do With an Extra $100,000

    1. I would too, but getting rid of some of the low-hanging fruit would also be a goal. If it was enough to pay off my house I might use all of the money in one big lump sum.

  1. This is fun! I would pay off student loans (16K), max out our Roths (11K), take the kids to Disney (6K), keep 20K somewhat liquid but ideally in a higher-yield online savings for when our 13-year-old car craps out, buy a chicken coop and garden fence (2K), put in hardwoods upstairs (10K), and remodel the kitchen (35K).

    1. Oooh, I like the list. Home improvements will also help with your ROI. Why not put laminate in instead of hardwoods? Cheaper? What kind of kitchen would you do for 35k? Anything less expensive?

      1. I might be unwise with the house stuff, but I want to do it *right*. I look at the zillow listings in my town periodically. Hardwood is the standard. Laminate would not hold its value. We need to change the floor plan of our kitchen, so it’s going to be a big job. Our plan is to first be in a position to max out our Roths before we start saving for that. Maybe in 2022…

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