[DoreenMichele]

Spending half on a house is not a great way to establish your independence.

There is a rule of thumb in finance: "Easy come, easy go."

You should pay off your car loans and then sit on the rest of the money for six months while trying to make these plans with your spouse rather than with a bunch of internet strangers. It is psychologically much harder to spend the money if you hold it a few months.

If you don't know how to be your own boss without a million in assets, it won't magically come to you just because you inherited money. With a well established expensive lifestyle like you clearly have and immediately spending half on a house, plus $40k on your car loans, you won't have as much maneuvering room as you think.

You should be asking questions about whatever business ideas you have and how to make those work. You should be researching where you can live comfortably without needing to spend a half mill on a house.

[teamleadnew]

Then why would spending $500k impact my 9-5 independence? I'm not linking the two. It's more about satisfying short terms needs like getting a house for my family then getting out of debts quickly. I think it's 2 different things. A lot of people here say you should become independent without any extra money. I agree, how about using that extra money to do what I would do by making a lot of money on my own? If I create a business and generate $1 million, I'd certainly buy a house. Again, I want to use this money to make myself focused 100%. Think of it as luxury money in the sense that I wouldn't have to worry about anything but my own project.

[DoreenMichele]

There are two ways to increase your runway:

1. Lower expenses.

2. Increase income.

You haven't talked about your business aspirations. Maybe you will be profitable from the word of go and this is a nit. I only know what info you have posted here.

Based on what info you have posted here, I assume you will need to figure out how to make money. Being successful at a 9 to 5 job doesn't guarantee entrepreneurial success.

An expensive house will come with higher property taxes, higher insurance costs and higher maintenance costs. A larger house will tend to soak up money for more furnishings etc.

Paying cash for a house doesn't have you living Scot free in terms of housing costs. It does substantially reduce carrying costs, but doesn't eliminate them.

You are talking about immediately spending $500k on a house, $40k on car loans and incurring moving costs. This leaves you with well under $500k to live on.

You don't sound like the type who can live on a shoestring budget. A half million for a single family home is an unimaginable figure for me. If I had that kind of money right now, I would likely buy two or three buildings, renovate them, live in one and become a landlord and still have money leftover.

I've read a lot of financial articles over the years. Two thirds of lottery winners are bankrupt within 5 years. I think one reason for that is that most people are either in earning more or in consuming mode and quitting gives you vastly more time to spend money while not earning. Keeping yourself entertained on the cheap is not what they envisioned.

You can do whatever you want. It's your money and your life. I merely made a good faith effort to answer the question. If my answer is not your cup of tea, well, you didn't pay for this advice. So it's fine if it is worth to you exactly as much as you paid for it.

Best of luck in your endeavors.

[teamleadnew]

1. that's exactly what I said I would do by paying off all my debts. This is a life with no debts. zero loan, no mortgages. Plus, like I said, I would still have enough cash on the side (about half a million) so I wouldn't have to worry about saving a dollar anymore. That 9-5 steady income would become like a plus rather than a necessity like 99% of the world.

2. That's not a short term goal. I don't care about increasing my income right away. I'm already making enough money as a software engineer working in the Bay Area. I don't need more money technically speaking. Problem is, I can't work at a 9-5 job anymore. Why would someone work at a 9-5 job? To pay bills? To buy a car? To buy a house? To have a steady income, etc. Like I said, I'd use that money to make my 9-5 job as obsolete as possible for a smooth transition to generating money on my own.

Where I live (Bay Area), $500k gets you a one car garage. I don't necessarily want to live in a place where schools aren't that great and where there's no opportunities. I'm not talking about living a luxurious life in San Francisco, but looking at places in Texas, Washington state and any other tech hubs, $500k gets you a house. Not a mansion. Not willing to move to Nebraska yet or Wisconsin... nothing against these 2 beautiful states but again, it's about opportunities for us and our kids. I said $500k which is my original budget, it depends on where my wife and I decides to move. Again, today, I make about $200k/year and I don't own a house. If I spend $500k in a house tomorrow, it ain't gonna change anything but the fact that I own a house outright. You see where I'm going? It's not about not being smart or not knowing how to manage money... nothing to do with a lottery winner like you said. This is pure extra money to me. Should I put it in a bank account and not touch it for the next 10 years? Worst investment ever... real estate will bring way more money than waiting for the FED to print out more papers. $500k US paper dollars will be worth $250k in 10 years. I already have various investments, crypto, bonds, index funds.

Also, as a home owner you have what it's called tax itemization. $24k/year if you don't itemize. A house that is paid off would cost me less than a rental. Keep that in mind. People are used to think that buying a house puts you in debts for life. It won't be the case since I would buy the house cash and still be making enough money per year. It's all about that transition from my 9-5 job to a fully autonomous business. If I fail with my project, I won't go bankrupt thanks to being out of debts with half a milli on the side. working at mcdonald's would be enough for me to end up positive at the end of the month.

[DoreenMichele]

If you are going to keep your 9 to 5 job, coolios. Enjoy house hunting.

But I am responding to your assertion that you plan to quit:

I'm seing it as a huge opportunity for me to transition to my ideal life, no debts, no boss.

The missing part is generating an income by myself to pay the remaining bills, etc.

It sounds to me like you are getting incredibly worked up about what I've said and offended and I don't understand that at all. So, I regret replying at all and enjoy your inheritance.

[teamleadnew]

Not offended at all. I just found your answer to be a little to "standard/cliché" and not targeted enough. Like putting someone in a bucket right away. It's not the case trust me... I'm better than that ;) Thanks again for taking time to post an answer. Really appreciated.