Yesterday, while I was browsing my Facebook, beneath all the drama and selfies, I saw an ad. It said, what would you do with $10,000? Hmmmmm...
That is a BIG amount of money.
What would budget pal do? Let me fire away.
50% would automatically go to savings. No questions asked.
This is a no brainer. Paying yourself first is the foundation of a good personal finance. Who is more important? You or your bills? Are you working just to pay bills? No matter how small or how big, make it a priority to set aside for yourself first. But 50% on savings? Situations vary. That’s how I would do it if I am handed a ten grand today.
I am only comfortable shelling out 10% of my money on investments / retirement. I’ll chicken out anything beyond that. You see, investing is gambling. You don’t know if your investments will gain or tank. Although I am not a big gambler, I still want to allocate a small portion of my money for my future. And the best way to be not fearful about investing is through diversification. This simply means that you invest your money in different kinds of investments.
I suggest that we all should take at least one or two vacations every year. Your body, mind, and soul need to recharge from the daily grind. When I said vacation, it does not have to be somewhere expensive. You just need to be somewhere other than where you live for a week or two. As for me, I love to travel. I am a sucker for new experiences, new culture, and new places. Speaking of trips, I can’t wait for my Asia trip in three weeks!
I would spend the $2000.00 with whatever I like, guilt free. Don’t get me wrong. Budget pal likes stuff too. I like material things. The nice ones. I just don’t prioritize them over savings, retirement, and travel. For me, security and memories from vacations are more important than things.
There will always be unexpected expenses and it’s good to have something on the side when that unexpected comes.
Now, that my friends, is how I would allocate the $10,000.00 if I got one today. I hope we all get one.
What would you do with $10,000.00?