Can you imagine spending $100,000 like a rock star before you hit 21? Jacob from I Heart Budgets did just that. Meanwhile, back when I was 18 to 21, I was driving a beat-up Toyota Corolla with a mismatched driver’s side door, thanks to a friend’s accident. That car had 160,000 miles on it, a broken muffler, and a gear box that had seen better days. Even so, I managed to have a great time during those years with very little money.
Let’s talk about being young with a huge amount of money. Imagine getting a $100,000 windfall at that age. I used to dream about investing most of that in something like Yahoo stock, watching it multiply, and then using the profits to buy a couple of million-dollar condos in New York City. Of course, I’d hold onto those condos because rental income is incredibly valuable in a low-interest-rate environment. But let’s be real—it’s easy to look back and imagine the perfect investments.
In reality, if I had $100,000 at 18, here’s probably how I would have actually spent it:
1. A Cool Car: I always wanted a fancy car. I’d likely have spent about $11,000 on a 1989 Mustang 5.0 GT, which would have been my pride and joy for college rides.
2. A High-End Watch: I’ve had a thing for watches since I was a kid, starting with those black Casios and moving up to dreaming about a $1,500 Tag Heuer. I would definitely have splurged on that watch.
3. Stylish Shoes: Shoe love is real love, especially for Air Jordans and Andre Agassis. Despite their $120 price tag back then, I’d have treated myself to a couple of pairs, spending around $500 total.
4. College Tuition: Thankfully, tuition was just $2,890 a year back then. Adding in general fees, room, and board, I’d use about $40,000 to cover my entire college education.
5. Travel: Eurotrips were the thing to do. I’d set aside about $10,000 for a couple of month-long trips to Europe and Asia because there’s no education like seeing the world.
6. A Gift for My Parents: I’d spend about $5,000 on a two-week cruise for them, airfare included. They’d probably tell me to save the money, but I’d insist.
7. Investing: With a minimal understanding of the markets back then, I’d cautiously invest about $5,000, keeping $20,000 safe just in case.
In four years, I would have blasted through $80,000 of that inheritance. It’s easy to do when you’re a student with no significant income. At graduation, I’d still have a $20,000 cushion to help start adult life, maybe getting an apartment in a city like NYC.
It’s fascinating to reflect on how easily money can be spent at a young age. What would you do if you had $100,000 at 18? Would you invest it, spend it, or save it?
