What I’d Do If I Won $1 Million Tomorrow
edited by Doug Garfinkel
Winning $1 Million would be a dream come true for most people but when I contemplate what I’d do if I was named a winner, the practical side of me may just outweigh the glamorous side.
Let’s Pretend I’m a Million Dollar Winner
I will start off by saying that I’m the type of person who enters a raffle at a public event and then prays that I lose. You see, I’d love to win but I don’t want to stand up and walk to the front of the room to get my prize. I would feel a little shy and even a little guilty to take a prize that another person more deserving than me should have won. So, when asked what I’d do if I won $1 Million tomorrow, my answer may not be what you’re expecting me to say.
A Win Would Be My Biggest Secret
What I’m about to say, you may find hard to believe. If I won $1 Million, I wouldn’t tell any family or friends. There would be no one in my circle that I’d trust wouldn’t tell a friend, who tells a friend, who tells another friend. Then, before I’d know it, long lost family members with financial woes or desperate strangers would be showing up on my doorstep.
If you still don’t believe me, let me explain a mock scenario:
I tell my mother that I won a prize and now I’m a millionaire. I offer to help her financially but I ask her not to tell anyone, as my safety could be compromised if word gets out. She promises not to tell anyone. The following day, she tells her friends at the lunch table in her independent living retirement home, because they are trustworthy. And as my mother would say, “Who are they going to tell?” While each of her friends promises not to tell anyone, word gets out. And now, I’m in danger of anyone desperate for money.
So, now you know why I’d make my $1 Million win a “Big Secret.”
I’d Hire a Lawyer and an Accountant
While I wouldn’t tell family and friends, I would hire a lawyer and an accountant, preferably those that have experience in the contest industry. There are many tax implications when you win a $1 Million prize. The federal and state taxes could be huge so I’d rather have the taxes deducted from the prize right away.
Example: The IRS typically withholds 24% immediately from a big prize win. So, for my “mock” $1 million prize, this amounts to $240,000 in federal taxes. In some states, the state tax could be another 8.82% that is deducted from the prize amount. Even with less money, I’d still call myself a millionaire winner but I’m aware that the actual cash that I’d walk away with would be approximately $630,000 to $760,000 after taxes.
Sharing is Caring But With a Twist
I would definitely help my family financially but not in the traditional sense. Keeping my big win as a secret, I would send money gifts anonymously. That way I won’t be judged by the dollar amount I choose to gift nor will those same relatives expect me to continue to support them every time they find themselves financially lacking.
I’d Donate to My Church
I’ve always believed in tithing at church, even when money has been tight. Tithing is the practice of giving 10% of your income to support the work of God. But instead of giving a weekly donation, as a $1 Million winner, I will ask the Pastor if he has any specific projects that currently need funding and I’d present him with a check on the spot. It’s not uncommon for church members to offer a large, lump sum tithe when they feel called to do so. Giving to my church would be a truly “Divine” benefit of being named a millionaire.
I’d Pay Off My Debts
When it comes to paying my debts, I would follow the “snowball” process. The snowball process is a debt payment plan that recommends you pay the debt with the lowest balance due first and then you work your way up to the higher balances. The joy I would feel removing one debt at a time until I live a “cash only” financial future, cannot be described in words.
Plan an All-Expenses Paid Family Reunion
My immediate family continues to grow and grow as my mother’s 8 grandchildren add a few more great grandchildren with each passing year. And the fact we are spread out in different locations from New York to Florida, and Tennessee to Colorado, we have not been together at one time in 12+ years. With my million dollar win, I would rent a massive vacation house and offer to pay the transportation for each family member. Would my generosity give away my secret $1 Million win? I would just say that I selected a good investment.
I’d Save For a Rainy Day
I’m embarrassed to say that I’ve had to take early withdrawals (with huge penalties and taxes) from my retirement plan to make ends meet. So, a million dollar win now would allow me to pay my retirement fund back for all of the money that I took out.
Just as my retirement fund would be filled to the brim, I would also have an emergency fund. Only now my emergency fund would be huge and I’d be ready for any unexpected expense. This mock million dollar win is sounding better and better to me, considering that I haven’t had a decent emergency fund in quite a while.
I’d Start a College Fund For My Grandchild
When I was pregnant with my son, my husband and I took a $1,000 inheritance from my late aunt and started a college fund for him. That money grew and grew throughout the years as we continued to contribute weekly. Because of that fund, my son did not need a student loan as many of his friends are now struggling to pay back. As a millionaire, I would start a college fund for my grandchild that could grow and grow and eliminate the need for a future student loan.
A Few Fun Things I Would Do
So now that I mentioned my practical side, I took a few moments to contemplate what fun things I could potentially treat myself to if I won $1 million tomorrow. I would like new bedroom furniture and a huge pillowy soft living room sectional couch. Perhaps I would have a small, inground pool installed in my backyard. I would like to spend a few days at Disneyworld in Orlando and stay at a luxury hotel so I can simply ride on the monorail train from the hotel location to Disney’s Magic Kingdom theme park. I would spend a weekend in New York City during the Christmas season with accommodations in the heart of Times Square, so I can go see the Radio City Rockettes perform.
What I Wouldn’t Do With My Money
I’ve heard plenty of horror stories where both lottery and sweepstakes winners spent the money so quickly and so frivolously that they landed in bankruptcy. In fact, according to thefreefinancialadvisor.com, about 70% of lottery winners lose it all, often within just a few years. Typically it’s because sudden wealth can create unexpected challenges.
I’d take those “winner turned loser” stories seriously and learn from their mistakes. Winning a huge prize would be a huge financial miracle in my life but there are things I wouldn’t splurge on, that other millionaire winners would do.
- I would not run out and buy new clothes, shoes, or handbags.
- I would not hop on an 8-hour flight to Europe.
- I wouldn’t sell my house to buy a mansion.
- I like cruises but a world cruise for 274 days would be too much.
- I don’t need a new vehicle. I love my 2024 Hyundai Santa Fe.
- I wouldn’t quit my job because I’m too young to get Medicare.
- I wouldn’t spend all of my money in the first year.
Takeaways: My Final Thoughts
I am in no way telling you to follow my plan as a million dollar winner. I’m just telling you how I would handle a win. Keeping my win private would ensure that I’d stay safe and I’d still get to present monetary gifts to friends and family on my own terms. Using the money to fund a college education for my grandchild while adding to my retirement fund, is practical yet so beneficial in the long run. Hiring an accountant and lawyer would guide me from collecting the money to understanding the tax responsibilities.
While it was fun pretending to be a mock million dollar winner, I think I could actually get used to living the life of a millionaire.
Author Bio: Donna Wright is a personal finance blogger for MoolaStakes.com, who enjoys researching, fact-checking, and expressing complex subjects in understandable terms. As a single parent, she knows the pitfalls of poor money management but also knows the satisfaction of improving finances. Her mission is to provide accurate, unbiased money management insights to money-conscious folks, just like her.
This article is for informational purposes only and does not constitute financial advice. Readers should verify all details independently and use their own judgment when following these practices.