1million dollars put into reality

It has surely been a while since our last post and now its finally time to reveal what we have been up to. We have taken this question of 'what you would do with a million dollars' into reality to see what other people around us of all ages and background would do and check whether our predictions and thoughts matched up.

As a group, we wandered the area of Macquarie Centre, Macquarie Uni, a Foodcourt and even someone's house to find out. Each of us took turns in interviewing random people and although some did not want to participate as they thought we were some kind of scam, we were still fortunate to find some that were willing to discuss with us.

To those that were willing to share we were honestly surprised, as we had some very very interesting responses that we were shocked to find out. Responses we didn't even think about and also some that we did expect.

So check out our vlog below for your enjoyment.

(Please note: some faces are blurred for privacy reasons)

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Anthony, Don, Katie, Mim and Sam

Poll Results

After much anticipation, we will finally announce the results of the poll...(drum roll)

 Although the poll is still open to votes, we are excited to announce that majority of the votes counted to investment with a million dollars. Followed close by pursuing dreams, holiday, charity, splurge, purchasing expensive vehicles and property. Surprisingly, we had the less votes for diamonds/golds. Is that hard to believe ? I guess there weren't so much female voters. 

There is still time to vote. If you want to change the results, please vote and give your input on how to spend a $1,000,000.


 

How many millionaires?

Wealth experts all agree that the world is creating more millionaires. Just how many? It all depends on who's measuring—and who defines "millionaire."
Capgemini and RBC Wealth Management released their World Wealth Report measuring the world's millionaires. The report said there were 920,000 new millionaires created in 2014, bringing the global total to 14.6 million[CNBC].

How many millionaires are there really? 

It turns out, the numbers depend largely on definitions of "millionaire." Specifically, while some studies measure people, others measure households. And while some only count "investible assets" as wealth, others include homes. 

Credit Suisse, for instance, says it defines millionaires as those with total wealth of $1 million or more. It says it measures both "financial" and "nonfinancial" wealth, in other words anyone with net assets of more than $1 million, i.e. your house, art collection and other assets.Capgemini, however, restricts its definition to those with more than $1 million in investible assets, which doesn't including primary residences. So if you have a house worth $1 million and an art collection worth $5 million, but investible assets of only $500,000, you don't make the cut. That results in a much lower count. 

This is not to say the methodologies are faulty. It's just that we don't have much visibility into exactly how the results are derived. Like estimates of billionaire net worth, the studies are useful as general guidelines. But when it comes to estimating individual wealth, whether for millionaires or billionaires, no study or list can be exact. 

This much we know for sure: The rich are not only getting richer, they're getting far more numerous.

- Don

Nouveau Riche

You will frequently see people mocking the nouveau riche, i.e., people who have recently acquired wealth, typically those perceived as ostentatious or lacking in good taste. (source: encyclopedia.com)

It's pretty easy to spot someone who has recently acquired wealth, especially if they were not previously wealthy. There are certain, dead giveaways because almost every nouveau riche does the same things. They splurge. They indulge. They flaunt their wealth. Usually, this involves spending money on things typically associated with 'being rich': expensive race cars, luxury designer clothing and accessories, property, artworks.

There's another similar term -"fashion victim", which refers to someone who is obsessed with wearing the latest trends, lacks any personal style and ends up looking like walking billboard. They're very easy to spot as they wearing a lot of the items which are "in" or popular this season, and more often than not they look extremely tacky wearing them. Fashion victims also usually buys only luxury goods like handbags, jewellery, watches, etc. An example of this would be the recent case of Christine Jiaxin Lee, a 21 year old Sydney student who is charged with fraud after a bank accidentally put $4.6 million in her account. Read more about this at: http://www.abc.net.au/news/2016-05-05/woman-arrested-at-sydney-airport-over-alleged-fraud/7385482

It's undeniable that suddenly coming into a large sum of wealth can be a very exhilarating experience. Sure, you could argue that maybe those people are just envious and you wouldn't be completely wrong. But, envious of what exactly? Their wealth? Both people of wealth and of lesser wealth engage in this, so there's an issue with your argument. Maybe it's an issue with society that we place so much importance on wealth and socioeconomic status.

 

- Anthony

One Million Dollars Isn't What It Used to Be

There was a time the word “millionaire” carried cachet. According to the Oxford English Dictionary, the word was first used in French in the early eighteenth century and in English nearly a century later. Regardless of your station in French society in 1719, you would recognize a net worth of one million lives being notable. The same would be true for one million U.S. dollars a century later. Only a small percentage of society could be listed within a roster of millionaires(Forbes magazine).

Millionaires are easier to find today. Inflation and the erosion of the value of a dollar over the course of two or more centuries has put the goal of having a financial worth of one million dollars within reach for more Americans, but the club is no longer the exclusive party it once was. When the term became popular in American print, the persons most likely to be millionaires were the heads of large, multinational corporations. These are the same folks who are most likely to be multi-billionaires today.


- Don

A little on the dark side of too much money

We have all heard of the stories that lotto money can change your life for better or worse.

For these people, this lump sum of money have turned their lives into a nightmare.

First we have Keith Gordon who won $14 million and thought that he wouldn't ever be stressed about money again. He ended up dying from a heart attack that was caused by 'money stress' as he quit his job and made some bad investments which lead to him getting a drinking addiction.

Another person we have is Callie Rogers. She is a 16 year old teenager who won $3 million. She  ended up splurging her money on expensive gifts, night outs and unfortunately drugs. None of that made her happy and the consequences were that she tried to end her life. She has now learned her lesson and now understands the value of money.

For more stories on how lotto changed the lives of people, check out the link below:

http://www.news.com.au/finance/money/wealth/beware-the-lotto-curse-when-instant-riches-ruin-your-life/news-story/e5cd968928f894f6404cdc0924493884


- Katie

'Cheap' or 'Smart' ?

We all know at least one person that hears the word FREE and would come running to you. Or even drive across town to save 10 cents on a litre of petrol. 

They absolutely love freebies, coupons, discounts and bargains. Doing everything at all cost not to pay full price or pay as little as possible ! You would usually find these people comparing various deals before they let the hammer drop. And if they can't find a deal, then they'll simply not purchase and wait until there is some kind of promotion. Some of them, may even try to still bargain despite being on sale.

Although some may like to call them 'cheap', while some may argue 'smart' ! 

It is very important to make notice of these people, as they demonstrate a lifestyle that is able to not solely focus on material possessions and not allow impulses to get the better of them. Money is truly appreciated, valued  and MAXIMISED ! Many in which can't do in today's society.

Imagine these individuals with a million dollars... do you think they'll still be savers ? or will they turn into 'spenders' ?

It is indeed a difficult question but I still believe there will be a % of them who would still be 'savers'. As many don't save simply because they don't earn enough for their future rainy days but rather they have an ideology in their mind that values money.

So what are your thoughts ? Are they 'cheap' or are they 'smart' ?

- Mimi