What would you do with an extra $20,000?
I recently read this article which said:
“CNN recently created a video in which they asked New York residents in Central Park a simple question “How would you spend an extra $20,000?”
What can you do with $20,000?
- You could buy a Mini Cooper
- You can invest it for 30 years and turn it into $265,353 at a 9% rate of return…
- You can buy 40,000 donuts which is enough to last you 109 years (without inflation and the cost of your heart surgery).
- You can stay at the Burj Al Arab for 3 nights
- You can live in Thailand for two years
- You could feed 80,000 children in Africa for a day or 220 for about a year.”
Would you buy a car, use it as a down payment on a house, pay off loans, splurge on something, or what?
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I'm with you all. Debt first. That way I can use whatever future spending I have to do what I want (like donate, eat donuts, travel).
I would do something similar as well. I would use around $15,000 on my student loan debt and put the other $5,000 towards my emergency fund.
I would give 10% to charity and use the rest to become debt free! Ah it's nice to dream!
It is nice to dream!
I'd find out where they are getting that 9% rate of return.Seriously, probably fill up my emergency fund and wait for the grace period on my student loans to expire before paying off as much as possible.
I'm with Little Lamb!
I would use $9K to finish paying off our car loan, use $1K for fun, then probably put the rest in the bank, so I can stare at it until I decided what to use it for.
This will sound selfish, but I would use it to pay down my debt and maybe go on a shopping trip.
I'd definitely throw the majority of it at my debt, but I'd also "splurge" on a budget vacation (shameless, I know!)..
I agree Eric! I want that 9%.And there's nothing wrong with putting it towards a vacation. 🙂
I like Little Lamb's idea, too! Although I'd probably use that 10% to fund microloans on Kiva, because as the loans get paid back I could keep using that money to help more entrepreneurs. :-)The rest, of course, would go toward paying off student loans. I'd probably pay mine off in full and then put the rest toward my husband's. That would free up a few hundred dollars each month to put into savings of some sort.