If I Had $5,000
(Or $5,110) in this scenario. In case you forgot, we tithe 10% of all increase. So, our PFD amount left after that is $4,599. With this money, we will be putting $1,600 extra toward our mortgage (on top of the extra $1500 we’ve been putting toward it the past few months) bringing our mortgage balance under $60,000 (I’m already looking forward to the October Plan Update!). The other $3,000 will go toward my Roth IRA which I hope to max out with the other $2,500 by the end of the year.
If I Had $10,000
The actual amount of the PFD was supposed to be $2,052 a person but because our state doesn’t currently have a sustainable budget, the Governor vetoed part of the PFD. Had that not happened, we would have gotten $10,260 (because there are five of us) which is closer to what we got last year. If we had gotten the full amount, I would have put $1,600 toward our mortgage like we’re doing, and then $5,500 to max out my Roth IRA and $2,000 toward Mr. T’s IRA leaving us with only $3,500 needed to max both out! Alas.
If I Had $50,000
There’s no relating to a windfall this large. It will most likely never happen, but it’s fun to mentally decide what I WOULD do. I would max out Roth IRAs for both 2016 and 2017 (waiting until January to max out the other two, obviously). That would be $22,000. The rest I would put right toward the mortgage. That would bring my mortgage balance to around $40,000!
If I Had $100,000
With J$’s thoughtful post on how his wife should spend his life insurance money, I’ve been thinking a lot about that. If I died, since I make very little money comparatively, we set it up for Mr. T to only get a $100,000 payout. I would advise him to pay off the mortgage and throw the other $30,000 into our investments. While we’re not financially independent yet, having no mortgage will help him get there faster. I’ve already set up his paychecks to max out his 401k. If he chooses to continue at his current job after I’m gone, his savings rate will continue to be high (though my paycheck will be lacking… obviously, since I’m dead and all). If he chooses to leave his job to take care of the kids and venture into entrepreneurship, he’ll have a paid-off home and his necessary bare minimum expenses will be low.
If I Had $500,000
Mr. T’s life insurance policy is $500,000. If Mr. T died (which he’s been informed is not allowed), I would pay off the mortgage and put the rest of the money in our investments. This would put us up to around $550,000 in investments and significantly lower expenses. Withdrawing 4% each year ($22,000), and adding my $15,000-ish annual income, we could make things work. Eventually, I would have to increase my income to be able to save for complete financial independence and some money for the kiddos for the future, but this amount would set us up for awhile to get us through the first few years of adjusting to being a single mom. (Again, please don’t die Mr. T.)
If I Had $1,000,000
I’d be rich. (You saw it coming.)