My friend had 900 thousand, its gone now.

**jinx** · 02-09-2007, 08:29 AM

Just wanted to share this. 6 years ago a friend of mine hit the lottery for 1.5 million dollars. After taxes she recieved approx. 900 thousand dollars. At the time she got the money, she and her dh had 3 children, and according to her were doing okay finanacially.
After they got the money, she quite her job, her husband left his second job, they bought a huge house, Renovated just about the whole thing, got all new furniture, bought 2 new cars, one a cadillac, took a couple of vacations etc. hHelped out her and her dh parents. The house they bought was a distance from me so we sort of lost touch, she also turned into a snob, but thats another story.
I hadnt seen her for a couple of years. Until last Wed. I was going into a TJMax, to kill time while waiting for my ds. I saw her working behind the customer service counter. She was taking lunch, so I had coffee with her. I mentioned that it must be nice to work just for something to do. She began to tell me that all the money was gone, and they owed money. They spent the entire amount. She said it was poor bookeeping, planning, and just thinking there wasnt any end to it. They didnt put any of it away. She has sold the big house luckily getting much more than they paid,, the cars, and the jewlery, they were able to pay off most of the debt, and buy a small 2 bedroom older home. She said they are basically back where they were 6 years ago. Just making ends meet. This got me thinking, What would I do if I had that money, and how would my life change? I think I would stay in my current home, Maybe have a few luxuries, I am happy the way things are now, so I dont think I would want do that much. I know I would put most of the money away. What would you do?

**FrugalMomof3** · 02-09-2007, 08:36 AM

Well for me I would totally pay of my current house and stay where I am at, pay my taxes and homeowners insurance for the next 3 years in advance then put the rest away into a good savings account to earn interest.

I know I would buy myself something nice but not a new car o a new house but maybe go on a shopping spree at the mall and once I am done that's it. I have learned to control the way I spend and now I have changed into a person who when I get money even $5 I want it to last so I save it. Has it been a few years ago i would have spent that $5 +.

Sorry to hear people change when they come into money, I hope that never happens to us should we win the lottery but I wont let it happen to me.

**nuisance26** · 02-09-2007, 08:51 AM

~Wow, that a sobering story. I'd like to think I wouldn't be that foolish with such a blessing, but I'm human too. I'd have definately bought a bigger home or put an addition on this one. And I'd have put in a pool. And paid of our mortgage and car. I'd definately save the rest though. And DH would still go to work, though probably not overtime! And we'd go somewhere warm and sunny in January. I wouldn't pay off others debts unless they were in foreclosure or something. And I would LOVE to have a secondhand, moderately nice travel trailer to see the U.S. in. Even with all that there's still 1/2 million $. If we saved that DH would retire a multi-millionaire. Although, now that I'm really thinking about it, I've always wanted to have a thrift shop with an old fashioned ice cream parlor and soda fountain next door. Another option is to quit work, move somewhere cheap(cabin in W.V.) and live off the interest. It's fun to spend imaginary money, isn't it?~

**Buckeye5** · 02-09-2007, 08:54 AM

Geez, that is a family that went nuts with that money!!! It is kinda sad, but so stupid of them to do all of that!!! If I ever one that money, my first priorities would be, a good accountant and lawyer. I don't need stuff to make me happy, but a nice vacation, now my eyes light up!!! I would share a bit and then, invest!!!

**kaykwilts** · 02-09-2007, 08:57 AM

Sadly that is what happens to a lot of people who come into a lot of money. You read about it all the time. If I were to win the lottery and come into a lot of money I'd do the following:

1. Give a tithe to the church.
2. Set aside money for my kid's education.
3. Invest the majority of it in good growth stock mutual funds. (about 75% of it)
4. Buy new living room furniture, new freezer, and new flooring for house.
5. Have some expensive dental work done.
6. Have some landscaping done on property.

That is really sad about your friend. By not investing they threw an opportunity to become financially independent.

**tigo** · 02-09-2007, 09:22 AM

If I had $900,000 what would I do?
- Pay off debt ($10,000=890,000)
- Buy the house we have been looking at ($150,000 =740,000)
- Set aside money for kids to go to college ($40,000 = 700,000)
- Gift to family members ($40,000 = 660,000)
- Go to college full time myself ($20,000 = 640000)
- Buy two newer vehicles ($40000 = 600000)
- Instead of donating to a church or group I would buy a handicap accessible van, new moterized wheel chair and lift chair for friend who had a stroke ($80,000 = 520,000)
- that leaves over a half mill to pay taxes (est- 300000- leaving 220000 in the bank) and live off of.
Fun to dream about isn't it?

**Emerald_Mommy** · 02-09-2007, 09:38 AM

This is why waiting to win the lottery/lotto/jackpot is not a good retirement strategy. These kinds of stories are far too common. It seems like something "snaps" in the common sense area when people come into so much money without earning it. It's easy to say that I would be responsible if it were me but I guess you don't really know, do you?

That said, if I happened to come into a large some of money (I do not play the lottery/lotto or gamble) I'd:

- tithe 10% to our church
- pay off this house
- build our dream house
- fully fund our retirement & kids' college
- probably take a vacation

I just can't think of that much that we would want. I'm sure there are lots of things but we don't have much money now and we're very happy, so I feel like a ton of money wouldn't make us happier, kwim?

**Cricketlegs** · 02-09-2007, 09:41 AM

If it were me I would have a certain amount moved from one account into my personal acount by direct deposit and live off it while dh was still working and bringing in his regular pay.

To tell the truth if we had an additional $1000 a month we would live like kings around here.

We would have a house payment(that would go away really fast) and our monthly utilities and regular expenses like the grocery store.

We also have 1 dd who is a freshman in college so we would pay for college for her, another dd that starts in the Fall of 2008. Yes 2 at one time and the Summer that the 2nd dd gradutates college that fall the 3rd dd starts! So College is another area I would spend the money.

Yes we would probably get a new house but a $120 thousand house here is like $500 thousand most places.

I don't want a big old house anyway!

That is just sad.

**pkellyc** · 02-09-2007, 10:13 AM

It's called a financial planner. Any large amounts of money needs one.

**seadream** · 02-09-2007, 10:43 AM

Pay off current house & then sell it.
Buy a bigger house in the country with some land & no neighbors.
Buy dh a new car. used is fine.
Start our own business of some kind and just enjoy life while not working for some one else.
Save the rest.

**cheappearls** · 02-09-2007, 11:05 AM

Wow!

I would:

pay off all debt. (Right now just our car payment.)
buy a house or put money away to buy a house when DH is out of the Army.
buy a new truck (used or new, it would be DH's so he would pick.)
put upgrades on my truck, (flow master, cold air intake, new tires, etc.)
put a BIG chunk into savings/retirement.
then it depends on what is going on. Probably buy a few things we have been wanting like a new BBQ grill and new furniture.

**Nemeweh** · 02-09-2007, 11:17 AM

Long story but...

Dh's dad was a genius. Seriously, if you have a printer in your house...then you're using technology he helped pioneer. He made millions, and it destroyed his family and eventually helped to cause his death when his private plane crashed and he died at the age of 46. Very, very, very sad.

There were two survivors who then sued the "estate" and even though he (my fil) had insurance, the insurance company refused to pay, and the family (dh, mil, sil) had to sell everything to pay the survivors and the family of fil's girlfriend and son (who also passed in the crash...that's a whole 'nother story in itself!). Anyways.

Money isn't everything, and it doesn't last forever.

MIL did manage to save enough of the estate to make sure Dh and SIL went to college, had great weddings, and DH was able to pay cash for this house...but we still over the years have taken out equity loans to do repairs, remodels and such because we're both financially irresponsible and ignorant.

We're learning now though!

I guess, I'm just saying I understand how they (your friends) went through all their money so quickly. Its sad for them.

**jamie79** · 02-09-2007, 01:56 PM

We already have thought about what we would do but since we cant even get one number when we play the chances are slim
1. pay off all debt
2.fully fund retirement
3 pay for both boys college
4. donate to the Multiple Scoloris Society, ( my sister has M.S.)
5. help out family a little
6. Invest the rest