While most people tend to cash out real estate investments, some dive into building a stock market portfolio — for better or for worse. But honestly, you can do a lot of things with a million dollars and it is a lot of money. But we’ll break it down to the 6 most important ones for you.
Pay off bad debt
Have high-interest rate credit card debt? Pay it off pronto! Although not likely not the first thing you would want to do with a million dollars. But this will do your personal finance some good.
If you have $1M that means you have good finance practices, unless you won a lottery. Either way, pay off the bad stuff before splurging.
Make a plan and chill
Now that you have all the bad stuff out of the way — and you’re dreaming about all the things you can buy – stop! Protect your money from yourself. Millionaires don’t stay millionaires by spending their first million. They plan, protect, save and then spend.
The best idea would be to lock it away for 6-months until you calm down and think about your future.
Now that you have time in your hands make a plan to track your finances. Jot down your long-term goals and track how well you’re moving towards your goals.
Take advantage of your credit
Once you put the first part of your millions into paying off your bad debt and have a ton of cash around. You see butterflies and rainbows because your credit is suddenly amazing. Now is your chance to your to get better credit cards which will earn you more money with higher rewards and cashback. Ah, the perks of being rich.
Safe investments or emergency funds
It’s quick and it’s safe. So you don’t need to fear ending up on the street.
How much? We recommend 6-months of living expenses if you have a job and 18-months of expenses if you have checked out of the working world.
Creating some passive income cash flow
Put some serious money into stocks, it takes minimal brainpower to administer and still gets you amazing returns.
Invest in learning
You have an income right now. You’ll still have to keep working though. But you want to know what you don’t have to do? Work the same drag of a job you’ve always had!
You have a million dollars; you now have the power to change the course of your life. Basically, you have enough money—more than enough money— to learn something that can change your career. Take a course and become a highly paid specialist in your field.
Or if you have the itch to fly solo and start your own company? That’s the most profitable thing ever! Use this opportunity to launch your entrepreneurial life.