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To think a Million pounds isn't actually that much?

(114 Posts)
BernardlookImaprostituterobotf Wed 14-May-14 17:00:43

To me it might as well be a million billion but -

Reading the story about another couple who won £1.8 mill lottery prize but are now worse off than before as they are bankrupt.

They bought a £750,000 house - ok, just over a mill left.
They bought 2, I think, sports cars - hmm, you'll be under a million now.
Both gave up work - on under a million?
They both financed independent business projects - I've lost the figures now but I'd be worried.
They both haemorrhaged money and yet the daily spending was on 'investment piece' £1500 bags, expensive guitars & a generally luxury lifestyle - but how? With what money?

In their specific case, she was left in the shit & I do have sympathy for the situation they're in now and have used them more as a general example of what I'm trying to articulate.

Do people ignore financial advisors? I don't understand how you can sink 3/4 or a million in a house and then expect the remaining money to support a luxury lifestyle if you don't work.
Surely you can either not work and live frugally trying to make good investments or you can keep working and the extra lifts you into luxury.

You can't buy a mansion and a yacht for a million quid but this seems to be how people spend it.
Aibu to think it's not much now? What would you do with it?

expatinscotland Wed 14-May-14 17:06:10

They are stupid. A million pounds is a fortune.

Well, it's not the same as it once used to be to have the status as a Millionaire.

However, with shrewd investments you could live quite happily on it if you don't piss it all up the wall.

Bonsoir Wed 14-May-14 17:08:35

It depends where you live. There are lots of places where £1 million won't buy you a nice home, just a boring small one.

Billygoats Wed 14-May-14 17:08:59

Agree they've been stupid with it. I can imagine some people would easily retire with a million but jut not be so flash about it.

NinetyNinePercentTroll Wed 14-May-14 17:09:06

Almost £2m is a lot of money, whoever you are. However, they clearly didn't appreciate that it will still only go so far and a few ill thought out decisions can leave you worse off than you were before.

Blondiebrownie Wed 14-May-14 17:09:13

A million pounds would sort my life out with my DC's as I would respect the fact that I couldn't be stupid with it but if used sensibly it can give you a comfortable life.

BackforGood Wed 14-May-14 17:11:03

£1.8million could set you up for life, but you have to be able to grasp it is a finite amount, not a never ending pool of money.
The sums aren't that hard to grasp.

£1million would be a lifechanging amount of money for probably 99% of the population, but it's not the "being a millionaire" dream of my Dad, filling in his pools coupon in the 60s and 70s obviously - you could earn a million over your lifetime if you did a professional qualification and worked for 45 years

SarcyMare Wed 14-May-14 17:11:07

we worked out 1 million paid the same as a head teacher of an average sized school (if you wanted the capitol left when you die) but now you have all day every day to fill, not really mega rich.

NatashaBee Wed 14-May-14 17:11:16

Message withdrawn at poster's request.

PrincessBabyCat Wed 14-May-14 17:11:39

Personally? Pay off debt, put the rest in savings.

I'd probably get a few big purchase items like a luxury vacation get away too. But mostly I'd save so I had money for retirement, DD's college, emergencies. God I sound boring.

LaurieFairyCake Wed 14-May-14 17:11:55

I think it's probably easy to get carried away. If you went up north and bought a mansion you couldn't afford to run it

But if you bought an ordinary semi round near me for 900k you could easily run it on the balance.

But you would need to work to pay your bills.

shakethetree Wed 14-May-14 17:12:13

Yanbu.

Nice house. Nice car.

Money gone.

expatinscotland Wed 14-May-14 17:12:56

On £1.8m we would easily be able to work only part-time till the end of days, but we live VERY cheaply.

insertrandomnamehere Wed 14-May-14 17:16:06

£1 could easily set you up for life if you invest it to create a source of sustainable income - for example buy a string of modest houses to rent out.

If you just retire and blow it all on luxury goods, you're an idiot.

insertrandomnamehere Wed 14-May-14 17:16:30

£1 million rather!

MrsKoala Wed 14-May-14 17:17:36

It's certainly not enough to buy a huge house outright and then give up work and live a rock'n'roll lifestyle for the rest of your life. A normal but nice 4 bedroom house where i am from and where i live now would be about 800k. Fees and the like would be £30k. Say another £50k for a round the world trip/6 months travel/skiing holidays. £100k on a couple of decent cars and some nice clothes and jewellery/watches and stuff. So say a Million spent.

If you are sensible and invest the £800k in property you can live off the rent i suppose. But imo you wouldn't be living a lavish life - just a very comfortable, nice life.

ouryve Wed 14-May-14 17:19:54

It is a lot of money, but far from enough to manage a jet set lifestyle. It's not actually any more than a couple just above average family income would earn in a lifetime

manicinsomniac Wed 14-May-14 17:23:34

They were stupid. It's a LOT of money but it's not a fortune.

I'd buy a decent house outright and then continue my life exactly as before but in a lovely home with far fewer overheads.

EatShitDerek Wed 14-May-14 17:25:52

Message withdrawn at poster's request.

insertrandomnamehere Wed 14-May-14 17:27:08

Realistically, I'd pay off the mortgage immediately, then do nothing for a month to think about it. I wouldn't tell anyone except immediate family.

Certainly wouldn't ring my boss the next morning and quit like you hear some people doing!

WooWooOwl Wed 14-May-14 17:28:22

A million isn't enough to buy a house and live a luxury lifestyle on, no where near.

It sounds like a lot of money, and it is really, but it's not enough quit working and to never have to worry about money again.

DownstairsMixUp Wed 14-May-14 17:29:11

They are stupid. I wouldn't buy a massive house because I don't need it. :S I only have two kids so I'd buy a nice four bed house and stick to under 500k (quite easy round here) I wouldn't buy new cars, the minute you leave the garage with a new car it's losing money. A nice classic car under 10k that holds its value would do me. I'd work part time after that.

Minnieisthedevilmouse Wed 14-May-14 17:29:19

A million doesn't buy you a five bed house near me. It's shocking.

I'd need five frankly.

Not that I'd turn one down but really if you think nice house, nice car, nice life, leave work, it's a darn sight more than 1.8mill you need....

I mean nice not just a bit better than you now have btw

Stepawayfromthezebras Wed 14-May-14 17:31:10

Up here you could give up work on it if you bought an ordinary house and lived frugally. If you want to spend it on a 750k house and flash cars you'd need some other source of income too.

I'd go for the giving up work and not spending too much option myself but then I'm a rubbish employee grin

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