If you had $73,000 what would you do with it?

MichaelD

Lifer
Jan 16, 2001
31,529
3
76
We all want to hit the Lotto for 21 Million Dollars. We all want to purchase a Ferrari Enzo and a leggy Six-Foot Amazon Blond to ride with us and say "oh Mike, you're such a stud...take me!" Um, yeah.

Let's take a more reasonable number, like $73,000 (Seventy Three Thousand Dollars, United States Funds). This could semi-easily be gained thru a partial Lottery win or thru an inheritance.

It is not a lot of money, relatively speaking. A typical 30% tax leaves you with $51,100...say Fifty Large, for sake of arguement. What would you do with it?

Let's assume you owe $25K on your vehicle, condo or house and another $20-$25K in credit cards, Mafia Loanshark payback or student loans. Paying these off would leave you debt-free, but broke again.

Do you....

a) Pay everything off and be a debt-free slob with no money in the bank?
b) Sock it all away, and against mathematical logic continue to pay interest on your debt, but be smug in the fact you have a nest egg that will hopefully grow over the years?

I'm curious as to what average folks would do.
 

Johnnie

Super Moderator<br>Elite Member
May 28, 2000
8,444
0
76
pay off vehicle..and all unsecured debt...keeping a mortgage for tax purposes
 

gopunk

Lifer
Jul 7, 2001
29,239
2
0
mm.... depends... would i be able to make money using that 50000 faster than my interest piles up?
 

ultimatebob

Lifer
Jul 1, 2001
25,135
2,445
126
Well, I don't have outstanding debts at the moment, so I would probably buy a car with my winnings and save the rest.
 

MichaelD

Lifer
Jan 16, 2001
31,529
3
76
Originally posted by: ultimatebob
Well, I don't have outstanding debts at the moment, so I would probably buy a car with my winnings and save the rest.

But, you suck. :p

j/k ;) Must be nice...
 

spidey

Senior member
Jul 17, 2002
749
0
0
I'd pay off the credit cards, the stress relief alone would negate any positive effects of a growing savings... besides, with all the money I'd save every month on effing high interest rates, I could have a decent nest egg in a short time.
 
Oct 9, 1999
15,218
3
81
I would pay off the debt first. Once that is done remaining I will put it in a savings account and a bit in a CD account.

That way I can earn interest. Its not like you can stop working with that kind of money. Paying my bills will be first. After that if I want to get a car, I can always get one via a loan, and since I am going to be working I can still pay the bills on the car else the interest will pay for the car.

 

trmiv

Lifer
Oct 10, 1999
14,668
1
81
I would pay off my credit card. I would then buy a 24 or 28 foot enclosed Pace American Shadow trailer for my race car. Fully decked out with all aluminum walls, aluminum cabinets, extra interior and exterior lighing, and air conditioning.
 

puffpio

Golden Member
Dec 21, 1999
1,664
0
0
wtf how can u owe 20-25K in credit card debt? that is just insane! that is not a normal persons debt
 

Booster

Diamond Member
May 4, 2002
4,380
0
0
If I won a lottery what can't really happen (I never buy any lottery tickets) I just don't know what to do with the extra money. I'd probably do nothing spontaneous b/c I'm an impulse buyer and I try not to peer in every shop just not to buy the stuff I don't need at all.
 

Chu

Banned
Jan 2, 2001
2,911
0
0
If you owe 25K in CC debt, odds are the creditors have started banging on your door long ago. Especially with those other figures you were given, your net worth is just not high enough to aquire 25K in CC debt and not have it set off tons of alarms at every credit agency.

Any option except paying off the debt would probably not even come to light if you dug a hole that deep for youself.

-Chu
 

Shockwave

Banned
Sep 16, 2000
9,059
0
0
I'd pay off all debt. Check your interest rate. MOST interest rates are neevr below 10%. Alot are above 15%, and some above 20%. I've never heard of a CD that pays more the 5%. ON AVERAGE, the stock market returns I think around 12% give or take a few points. GOOD funds will do around 15%, but I stress if your good. Thus, assume an average of 13% for debt, and 8% for return on investment....You come out ahead paying off all debt as opposed to saving the money. Now, myselof? I have about 35k is debt (Most student loans) So I'd pay off all debt, and invest the rest :)
 

iamme

Lifer
Jul 21, 2001
21,059
3
0
Originally posted by: pio!pio!
wtf how can u owe 20-25K in credit card debt? that is just insane! that is not a normal persons debt

With student loans and money owed to the Mafia, it could be :)
 

iamme

Lifer
Jul 21, 2001
21,059
3
0
Originally posted by: baffled2
LOL,I'd have to find somebody who wanted to help me have fun spending some of it :)

Put that in the Want Ads, and I'm sure you won't have any problems finding someone :)