Let’s see how financially responsible you are. If you had the choice between:
- $50,000 to spend freely, but none of it can be used on something that can be sold or saved. For example, a vacation, one time trip around the world, etc. Must be spent within 30 days.
OR
- $25,000 to save and invest. You can’t spend any of this for at least 10 years.
Loading ...
traineeinvestor
July 30, 2006 at 4:29 pm
Assuming I cannot find a way of cheating on the US$50K by either:
1.spending it on a consumer item that actually has the ability to appreciate in value (e.g. a coloured gemstone for my wife or a few cases of top quality Bordeaux wine);
2. spending it on things which I would have spent the money on anyway with the result that my other spending is reduced by more than US$25K (can’t think of anything that I would spend US$25K on in 30 days),
then it has to be the savings.
freedumb
July 30, 2006 at 4:51 pm
LOL…no cheating traineeinvestor!
No spending 50K on a marriot vacation and cancelling a few days before for a refund!
Altough, maybe lottery tickets and gambling might be acceptable…That’s in a gray area.
Loi Tran
July 30, 2006 at 7:16 pm
I would spend the money on a trip. I’m getting twice the buying power, so might as well use it. I just look at the present value of money and choose the higher value. Even though I can’t spend any of the money that will have value in the future, I still think it is a better deal.
Single Ma
July 31, 2006 at 2:25 am
I’d spend it!! I’d spend it!! I’d spend it in a heart beat. I haven’t been on a vacation in ages so I’d travel. Mmmm a 30 day, all expense paid trip sounds nice right about now. I’m sure I can find somewhere to go that would give me lifelong memories.
Tricia
July 31, 2006 at 3:28 am
Tough question and some big numbers. I didn’t vote yet because I’m wondering if paying for continuing your Education would fit under the $50,000 choice? If so, I think I would take the $50,000 (although not sure how I would spend it all in 30 days – perhaps pre-pay for a lot of courses?). Can you donate any leftover?
I’m thinking too much again, aren’t I….LOL.
Great question.
mapgirl
July 31, 2006 at 3:53 am
I’d definitely choose save right now, though sometimes I covet having a new car. I know I could spend that $50K in a heartbeat on a frivolous vehicle (Porsche Carrera 4, Lotus Elise, etc.) that I would love driving all over the place. (I guess this doesn’t count though since I could sell it?)
The main reason I’d pick save is that I could probably double that $25K in 10 years, even with a modest 7-8% return.
S/100/30
July 31, 2006 at 5:27 am
Tough question and some big numbers. I didn’t vote yet because I’m wondering if paying for continuing your Education would fit under the $50,000 choice?
Yeah, I going to vote $50k because I could spend a large chunk of it paying off student loans, which are not something that can be “sold or saved”, but I think that violated the spirit if not the letter of the question.
The large numbers make it a little too easy for me, because there’s no way I could spend $50k in 30 days on ephemeral things and get $25k’s worth of enjoyment. Heck, even 20-day African safari’s are “only” $18k per person.
If the question was something like $5k vs $2.5k, though, it’d be a much harder proposition for me.
ricemutt
July 31, 2006 at 7:07 am
I’d spend it. $50K of free cash in hand now, vs. having to wait X years to turn $25K less taxes into $50K (which ultimately will be spent somehow, in the end…that’s what money is for), not to mention that I’ll be 10 years older by then…the decision’s pretty easy!
Lots of good ways mentioned here on how to “spend” $50K. I’d spend it on a fully-paid trip around the world (not in resorts, not all in developed countries, but more akin to backpacking), sort of like Jim Rogers (without the motorcycle). Too bad it’d have to be within 30 days. Still, what an invaluable experience to have.
Actually, I’d even donate the $50K to a charity in another country who can really use it, even if I don’t get a tax benefit. $50K can go a long way in some places.
freedumb
July 31, 2006 at 9:57 am
Tricia, Can you donate? Yes, I don’t see why not.
Mapgirl, you could rent one!
s/100/30, Paying off debt…hmm, I’d say that would not be allowed. It’s almost the same as investing, but getting your returns right away.
Ricemutt, You could probably negotiate extending the 30 day limit to 60.
freedumb
July 31, 2006 at 12:39 pm
Loi Tran, nice to “meet” you…yeah, I hear you on the spending power argument.
SingleMa, You def deserve that vacation! Your last sentence brings up the Mastercard commercial. Damn brainwashing ads I tell ya!
Single Ma
July 31, 2006 at 1:38 pm
Is that where I got it from? LOL Damn commercials stuck in my head!! Ha!
freedumb
July 31, 2006 at 1:57 pm
Well, not word for word, but when I read it, I automatically thought Mastercard…even though they use “priceless”…odd.
John M
August 1, 2006 at 10:54 am
You know what, you only live once. While saving is important, spending this money on once in a lifetime opportunities is worth it to me.
freedumb
August 1, 2006 at 12:59 pm
John M, Exactly my thoughts as well…I’m thinking “Oh the places you’ll go!” (Dr. Seuss)…Alaska, Iceland, New Zealand…I’ll keep dreaming. In some ways, because I can’t just buy things with that 50k, it’d be sort of liberating, because I would be forced to just spend it. No thoughts about when it could have been saved, invested, etc.
Andrew
August 1, 2006 at 1:07 pm
I would save the $25k because I would still be able to do the other fun things I want to do now because of proper budgeting and such. Then in ten years I would have a little extra money for who knows what. The $50k is of course tempting.
freedumb
August 4, 2006 at 11:11 pm
Andrew, Thx for the feedback…sounds like you have a small degree of hestitation…You know you want to take the 50k vacation!
Financial Freedumb & Brownie - A PF Blog » Poll Analysis: “Spend 50k or Invest 25k?” & “Site Too Busy?”
August 9, 2006 at 6:33 am
[...] Here’s a Question For You: $50k To Spend or $25k To InvestFriday! Update: 2 Must-Do Tips For Saving, an Inspiring Comment, and more!Need Your Opinion. Please Vote. Translate to: [...]
MiserlyBastard
August 9, 2006 at 8:51 am
This is an easy question, and if people dont understand why the $50k should be spent rather than saved, they dont understand investing at all. By choosing the $50k, the realize an immediate 100% return; to get this return from an investment could take 7-10 years, depending on what return assumptions you used.
Furthermore, there are so many ways I could spend these on services that boggle the mind. And Im not talking about the predictable stuff like a 48-hour bender in Las Vegas. I’m talking about stuff that continues to pay economic dividends long after the money is “spent”–stuff like: rent, pre-paying insurance costs, paying education expenses for children, elective surgery not covered by medical insurance, prepaying utility bills, etc.
jxlqyhlp
December 15, 2006 at 2:59 am
bdsm girl video…
uykhgjjzy mlvszo cujcgbboe sfgwttvg dotchadbzy hqilkdgxs ijqrpmhg oalhniliagq…