Forums: Discussions for entrepreneurs and small business.

It is only a dream, but I like to dream about it often.  I`d like I to think that I`d be responsible with the money.  First of all I would pay off my debts, which are minimal.  I would put some away for my son`s college fund.  Then with the rest I`d grow my business slowly.

One thing that I would be deathly afraid of is that if that much money were to fall into my lap and I blow it all.  I mean it`s a lot of money but it could be gone in the blink of an eye.  Maybe the trick into knowing where every dollar is going is to hold on to it in $1 bills.  Pay everything in cash in dollar bills!  Ha...  yeah, that`s what I`d do....I`d hate to see all of those bills going!  =-)

Oh the power of a $1 bill!


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Swarm, Bee Natural

We`ve had a couple of threads about what you`d do with a big windfall of money. What it boils down to is your knowledge of, and relationship to investment capital, cash influx, working capital, and all kinds of other complicated words.

I grew up in a family and neighborhood that had a lot of people with invested portfolios. Many of those folks had trust funds set up, or lived off of such funds. My father drilled into us kids that you don`t spend the principal. I didn`t know what that was.

If you have $1-million and live off the interest, every year you have some small amount of money, but you still have the original million---the principal---and it`s continuing to spin off interest. Still a small amount, that interest, but it`s "new money."

If you spend that million, you can get to an all-cash basis, but you still have new living expenses. However, you have no new money...the million`s gone.

Isn`t this the same problem with $100K? Do you spend the capital, or do you invest it and use the ensuing "interest," or "return on the investment."