If you won the Powerball today, what would you do with the $90 million dollars?
While I’m not the first to tell you that you are definitely not going to win the Powerball – you have a 20 times greater chance of having identical triplets – it’s a great idea to think about what you would do with the 90 million dollars if you did win.
Here’s why: your answer is a great way to understand what you truly care about in life.
What’s the first thing you thought of? Was it “retire and live on a boat in Hawaii?” “Quit my job and become a deejay?” “Book a ride to the Space Station?” Or even just “Stop worrying about how to pay for my kids’ college?”
Your answer – however crazy or however normal – is a window into what’s really important to you and a great way of evaluating your current financial strategy. Is upgrading your home a potential goal? Have you budgeted enough for your passions? Should you start saving more for more travel and adventure? Have you looked into 529 plans?
As a Financial Advisor, I would advise that you not waste that $2 when it would be better spent collecting compound interest. I would ask you whether you’d already contributed to your 401K plan, your emergency fund, and your other long or short term savings goals. Then I would suggest that if you really wanted to play Powerball, that you re-allocate that $2 from another area – skipping the caramel latte this morning, for instance, or biking to work tomorrow to save on gas – so that the $2 is amortized.
But I would also tell you to keep dreaming, because those things you are dreaming about are a great way to evaluate whether your current savings and investment goals are tailor-made to help you achieve the life you really want, the life you’d lead if there was nothing standing in your way.
So consider it: if you won $90 million dollars, what’s the first thing you’d do? Now call your financial advisor and take the first step to actually making that happen.
p.s. – If you want to see what your chances of winning actually are, click here to try the LA Times’ Powerball Simulator!