Everybody likes to speculate about what they would do if they won the lottery and came into sudden wealth. The memes are on social media all the time. And the answers are usually something along the lines of "I'd quit my job and travel!" Or, if you really hate your job it's more like "I'd tell my boss to kiss my ass then buy a boat!"
Most times I read these replies and don't know how to answer because so many details are missing.
How much money are we talking about, after taxes? If it's a million dollars, here in Washington State you'd lose $250,000 of that (according to the Lottery Tax Calculator) leaving you $750,000. So... that's likely 10 to 20 years covered depending on how much you spend in a year. Or perhaps 5 years if you go really crazy. So... when you really think about it... quitting your job only works if it can carry you to retirement age. By the time I retire, retirement age will probably be 70 years old, so I could quit work if I spend only $50,000 a year. Totally doable, really. Though, to be honest, I'd probably still work for at least five years since Social Security is likely going to be in the toilet unless Congress stops being a bunch of dumbasses.
Where it gets interesting is if the lottery is more like 10 million dollars. That leaves me $7.5 million to play with after taxes. Even if Social Security collapses completely, if I live to be 80 years old I'd have $250,000 a year to spend! In which case... oh yeah... I ain't working another day in my life. Pay off my house. Travel a bit. Do some remodeling. Go crazy. Then it's just day after day of drawing and woodworking for me until I die.
If I win $100 million, I'm going to space.
I guess this means I should start buying lottery tickets?
I love comments! However, all comments are moderated, and won't appear until approved. Are you an abusive troll with nothing to contribute? Don't bother. Selling something? Don't bother. Spam linking? Don't bother.
To be honest, I have done the math here several times… regardless of where I win the money from. The one part about winning the lottery is being able to give anyone $15,000 with them needing to pay taxes on it. That would be great to keep every single friend and family member from coming out of the woodwork asking for money. I mean, they still might keep asking, but it would be on them to feel stupid enough to ask.
If you win enough, you put the majority of it in even a basic saving account and live off the interest.
It’s not like I have huge monetary ambitions. But it would be nice to not have to worry about money!