Step in the Dark

My current position ends in September and as of right now, I don't have any other desired jobs waiting for me, but today, I still turned down a job offer.
My boss wants to keep me around and so she's willing to give me any position she can find at our organization. I am flattered by her continual efforts. However, as I sat pondering my opportunities, I came to feel that accepting that offered position would be equivalent to settling. The only reason I would take that job is because I'm scared that there may not be anything better. But, what kind of attitude is that? That's a defeatist attitude and I am not going to be defeated nor do I want to spend the next several years of my life at a job that is not stimulating. It does not have to be exciting everyday. In fact, I don't even think my dream job would be exciting every day. But yes, I do want it to require something of me and I want to be a valuable asset to the organization.
So, it's somewhat liberating to take that step in the dark. I am educated, hard-working, and willing. So, I turned it down expecting that there is some great option out there for me. I don't want to settle - at any level in life - so I figured that employment is a good place to start.
So, the job search begins again.