What would you do with $100,000 (please read details)?

Question

Recently Showtime aired a documentary called Reversal of Fortune, in which filmmakers followed a homeless man who thought the documentary was about life on the streets. Without his knowledge they planted a suitcase with $100,000 for him to find with a note: "What would you do with $100,000?"

He started off going back to his hometown to rent an apartment, bought a truck, and splurged, splurged, splurged. When the producers realized how fast he was going through his money, they sent a financial advisor to meet with him and discuss his situation. He refused any help and believed that all the adviser wanted was a chunk of his money.

Within 8 months he had spent all of the $100,000 and went back to living on the streets.

What would you do if you were in his situation? Try to think realistically rather than idealistically because I'm sure if he were asked the same question, he would give a different answer than what he really did with it.

Why do you think he went through the money so fast?

I tried to find the video online, but no one has it. I think Showtime has all the rights to it and doesn't want to give it away, lol.
Wiki talks a bit about it. This article also gives a little more insight into his personality and struggles. He was smoking pot but I don't think he was doing any hard drugs.
http://en.wikipedia.org/wiki/Reversal_of_Fortune_(2005_film)

Answer 1

I've always been afraid that that would happen to me. When my mother passes away, I stand to inherit quite a decent amount. I've never had much "extra" money, so I have given this a lot of thought. They say the first thing you should do is NOTHING! Let your emotions subside then get a lawyer and a financial adviser. Also pay yourself - in other words, allocate a certain amount to "blow" or do with as you please - but every other penny after that should be planned and accounted for. By having professionals help you, it keeps you in check.

The link below talks seriously about this subject.

Answer 2

good question, i would pay off my sons hospital bills. keep the car i have now, (a 93 dodge shadow, it runs great) go for an extended visit with my other 2 children in montana, get myself out of debt, help my family members get back on their feet, help my kids start colledge funds, then keep the rest in the bank. use only as needed. after all, an unexpected emergency comes when not expected. $100,000 wont last for ever, but it will sure go along way if spent wisely. he maby has never seen, or had that much money at one time before, so he got a little carried away. im sure he would do it different the second time around.

Answer 3

I would pay off bills (primarily college loans) so that I can keep more of the money I earn.

Why did that guy fail. He didn't take the time to think the situation through - the other thing is that a large % of homeless people are mentally ill. They didn't commit a crime and there are no longer state funded homes for the mildly impaired, undiagnosed ADD/ADHD, depression etc.. A lot of homeless aren't there because of hard luck, it's because they are incapable of functioning per the norm.

Answer 4

I'd probably get my passport and leave the country. Knowing you're on such tight means as a foreigner is bound to precipitate a certain ' circumspection.' You know you have to make it work. More than that, you know you don't ever want to come back.

The control subject was typical of his type. Even if he weren't homeless. He's a type visible everywhere.

It isn't the homelessness. You forgot to mention if said individual was a substance user or part of something. No one on those streets is what he appears anymore than anyone else.

Academic, really.

Answer 5

I'd travel untill I almost ran out of money.

A mix of low budget places in Africa and South America for a year or so to start. Maybe spend a few months in Europe too. All the while having diffrent friends or family rotating in and out of my vacation. Staying with me in the best hotels and shareing great times.

After my year or so of travel and experiences. I would use the rest towards a home and a car. Live out the rest of my life one year later but with a years worth of great experiences.

Answer 6

Here's how it'd go:

$30,000 - Pay Student Loans down
$17,000 - house down payment
$10,000 - 401k or IRA
$10,000 - checking
$10,000 - savings
$9,000 - family
$7,000 - spend
$4,000 - Pay off Car
$2,000 - pay a few utilities up in advance
$1,000 - pay off Credit cards


That's $100,000, and would leave me with a house (investment), only $10k in student loans, a paid off car, paid off credit cards, $20k in the bank, $10k - a nice start to retirement, a few less bills to worry about each month, and the happiness that my family would be even a little better off.

Answer 7

well, first of all, 100,000 won't last a lifetime and he was most likely uneducated without any work skills. The best thing he could have done was educate himself so he could find employment. It was like giving candy to a baby.

Answer 8

I'd get some cheap shelter,a cheap car and start my own business so that I never became poor and homeless agin.Then I could help other people who really wanted to help themselves not get a handout.Teach people how to get what they want the old fashioned way.By working hard to achieve their goals(legally).

Answer 9

I would pay off some debts and invest it in stock or Cd's

Answer 10

If I had 100,000 I'd go back to school & make home repairs.