There was a time when having a million dollars meant you were rich. With inflation, it’s becoming less impressive each passing year. How would you judge the value of a million dollars if you won the lottery today?

Read our disclaimer here.

How to Get a Million Dollars

Winning the lottery is an essential part of any personal financial plan. Since you’re so naturally lucky, your expectations are well-founded. There’s just one problem. There’s no way to know what day, month, or year it will happen! For those who are less lucky, there are other ways to earn your first million dollars which are discussed in another post. Now let’s look at the most popular ways to spend a million dollars.

The YOLO Path

You only live once. Therefore, you should live each day like it’s your last. You can’t take your money with you when you die, so you better make full use of it while you can! Here are a few ways to accomplish that:

  • House – $400,000 average cost
  • Boats & Cars – $40,000 average cost
  • Vacations
  • Parties
  • Clothing & Jewelry
  • Food
  • Charity

Quality of life makes it worth living. You’ll make some great memories when you share your wealth with your friends and family. Let’s face it, all the stuff means nothing if you can’t share it with people you love. But what happens when the money runs out? Your toys will need maintenance, and they only lose value over time. Shallow friends will lose interest when you stop paying for their drinks. How long will the impact of your charitable donations last? Does a bigger house really make your life much better? Now imagine if only there was a way to spread these benefits over time…

The Retirement Path

You only live once. Therefore, you should safeguard your future by investing your millions. Sound boring? Don’t fall asleep just yet! You can still have some of the fun stuff from the YOLO section. There’s a magical concept called renting that allows you to enjoy things without having to own them! You just have to earn enough money to support the monthly payments. Here’s how you do that:

Invest Your Millions

Wealthy people stay wealthy because they know how to take smart risks with their money. We have another article that explains why the stock market isn’t as scary as it seems. Now let’s compare the good and bad parts of investing:


  • Investments provide income to support your living expenses
  • Never run out of money
  • Never have to work again
  • Provides jobs for others
  • Freedom to decide how to spend your time
  • Inheritance for your family


  • You’ll have to stick to a budget (it’s a cruel world I know)
  • Investment performance is uncertain
  • You can lose your money if invested poorly

Live On Passive Income

If you invested a million dollars in the stock market, you would have around $40,000 per year in sustainable spending power. Sustainable means you can maintain your lifestyle forever, even with inflation! Here’s how that works:

  1. Start with a million dollars invested.
  2. Withdraw 4% or $40,000.
  3. Stocks grow 10% after one year.
  4. Investments are now worth $1.06 million (6% higher than last year).
  5. 6% increase beats 3% inflation!

In reality, you can use any withdrawal rate you want, but 4% is most widely accepted in the financial community.


Now I’ll leave it up to you to choose your path. At least now you know that being a millionaire doesn’t only give you the chance to live in luxury. It’s also a chance to obtain true freedom. Contrary to popular belief, the lottery isn’t the only way to become a millionaire. If you’re in the working class, you’ll enjoy our article on how to retire in less than 15 years. Click below to share this with all the future millionaires you know!

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