UNEEK Posted January 30, 2015 Report Share Posted January 30, 2015 A million bucks still sounds like a lot of money to me!! I have not calculated what I have made thus far from the many jobs I have had and I guess it could come close to that or maybe even exceed a bit ( I have not had high paying jobs ) This article put things in a sobering perspective -- and unless you exercise some discipline and smarts that million bucks could vanish quickly -- These thoughts have been voiced before but I thought it was still an interesting article to share -- You know we pass over a lot of articles or read them when we are in a certain mindset and they do not necessarily "click" at the time - whereas at a different time they do -- 3 Reasons Why $1 Million Is Just Not a Lot of Money The infamous $1 million. It’s been the top prize on hit game shows like Deal or No Deal and Who Wants to Be a Millionaire? – it’s also a financial goal many people strive to meet. “I want to be a millionaire someday,” people may say when talking about their career and financial goals. But how much money is $1 million? Is it enough to live happily ever after without ever having any financial troubles? Probably not. Even if the $1 million you received was somehow magically tax-free, it’s still probably not as much money as you think it is, and the large sum of money certainly isn’t what it used to be. 1. Past, present, and future Although it sounds like a lot of cash, $1 million of today’s money is only worth about $42,000 of 1914 dollars, which is less than today’s median household income. Even if we go back 50 years, $1 million in today’s money would only be worth a fraction of that amount — or around $133,000 — worth of 1964 dollars. Also, think about it this way: How old are you? If you received $1 million today, at age 25 or 30, for instance, you would probably have at least another 50 years on this Earth (if you lived until the average life expectancy of around 80 years old). During the next 50 years, your $1 million is only going to decline in value. According to Buy Upside’s Inflation Calculator, its value will be roughly $225,000, if the inflation rate is constant at 3%. The only way to protect your money is to invest it, which requires a degree of discipline (you’d have to refrain from spending it all). 2. Have more, buy more Those who have more money are inclined to spend more money. A simple glance at the Bureau of Labor Statistics’ consumer expenditure surveys shows that as income rises, so does spending. The lowest income group had $22,830 in average annual expenditures on the latest survey, the middle-income groups had average expenditures of $36,093, and the highest spent an average of $85,264. When you have a bank account that’s filled with all that money, it’s easy to convince yourself that you “need” to buy a five-bedroom house on the water, instead of a modest two-bedroom home. It’s also easy to get into the mindset that you “have to have” a Bentley, instead of a Honda Accord. A million dollars will go quickly unless you hold onto the same lifestyle as you had before you acquired the sum of money. 3. You would likely have to remain employed A $1 million tax-free windfall would probably not allow you to up and quit your job, unless you had some sort of brilliant investing strategy coupled with extreme self-discipline. If you were to simply save and live off of the money, it would only amount to an annual salary of $50,000 over 20 years, $25,000 over 40 years, or $20,000 over 50 years. Also, let’s not forget that those relative amounts will decline in value over time. The average worker with a bachelor’s degree earns $2.4 million over his or her lifetime, which is more than double the $1 million windfall. Even those with no college degree far exceed the $1 million mark over a lifetime. So, although a $1 million cash prize could certainly be life-changing for most people, it wouldn’t necessarily be the permanent answer to all of your money problems. Unless you have a constant income source flowing in — through employment, investment returns, or elsewhere — your $1 million windfall would blow away fairly quickly. http://wallstcheatsheet.com/business/3-reasons-why-1-million-is-not-a-lot-of-money.html/?ref=YF 3 Link to comment Share on other sites More sharing options...
bigwave Posted January 30, 2015 Report Share Posted January 30, 2015 The first million bucks is the hardest. IF invested WISELY everything will be all right. For me quiting work (my labor of love) would drive me under the bus. For those that want to start (continue) drinking, and binge spending and animal house partying they will be right back to where they started from. The rich get richer and the poor get poorer for a reason. It is not a mistake why 5% of the worlds population have 95% of the money. Be wise and listen to that little (sane) voice inside. For me a million buck IS a lot of money. Thanks, as allways UNEEK. Peace, Come on RV 3 Link to comment Share on other sites More sharing options...
FlintNPebbles Posted January 30, 2015 Report Share Posted January 30, 2015 Thank you Uneek...good article. 1 million is a lot of money to me...if we would be so lucky to get it, it would be a nice supplement to our retirement funding. Would be nice to live out our golden years without having to squeek every dime...but we certainly wouldn't change much in our lives 2 Link to comment Share on other sites More sharing options...
RV ME Posted January 30, 2015 Report Share Posted January 30, 2015 Without discipline no amount will be ever be enough. How many professional athletes are broke later in life, even after earning multi-millions in their playing careers. Seem to recall that Robin Williams was near bankruptcy when he ended his life, and how many hundreds of millions did he burn through. What our parents told us is still true today. Pay yourself first and live within your means. 5 Link to comment Share on other sites More sharing options...
moose 57 Posted January 30, 2015 Report Share Posted January 30, 2015 I would love to see how long 1 million dollars cash lasts me! 3 Link to comment Share on other sites More sharing options...
eburt Posted January 30, 2015 Report Share Posted January 30, 2015 Thanks Uneek - Great article and very true in my opinion - Something to think about... 1 Link to comment Share on other sites More sharing options...
umbertino Posted January 30, 2015 Report Share Posted January 30, 2015 Still a lot of money to poor me 1 Link to comment Share on other sites More sharing options...
UNEEK Posted January 30, 2015 Author Report Share Posted January 30, 2015 Thanks everyone for your input / feed back -- These past 6 years have been very enlightening for me but I bet for all here -- I have lived a very frugal lifestyle - leaving home at just barely 17 yrs old -- with a wrecked car and no money in my pocket -- I did have a job though -- Sometimes cheese crackers were my lunch -- My parents were very strict and while at home and working I did pay a small room & board from my earnings -- A curse then in my mind but a valuable lesson for survival & money management when I decided to leave home (under unfavorable conditions, sad to say) My life has changed a lot over the years as I have experienced many set backs from being robbed or just poor economy -- I have been self employed most of my adult life and that in of itself brings a lot more challenges (IMO) - A million dollars really is a lot of money but even more so to the mindset when you do NOT have huge expensive material desires -- I feel that age & wisdom can play an important part in the scenario -- The younger "seem" to be more materialistic and undisciplined in their spending -- I could summarize by saying -- You either augment your means or diminish your wants -- but if you are "WISE" you can balance that to your advantage - UNEEK 4 Link to comment Share on other sites More sharing options...
umbertino Posted January 30, 2015 Report Share Posted January 30, 2015 Grazie UNEEK...Food for thought. That's always good. 1 Link to comment Share on other sites More sharing options...
chess Posted January 30, 2015 Report Share Posted January 30, 2015 ....again.....GOOD WORDS!! 1 Link to comment Share on other sites More sharing options...
UNEEK Posted January 30, 2015 Author Report Share Posted January 30, 2015 Thank You Chess, I feel I do much better researching helpful - enlightening - thought provoking articles instead of giving my total energy & thinking to this dinar saga which consists of lots of speculation and rumors - lol 1 Link to comment Share on other sites More sharing options...
The Machine Posted January 30, 2015 Report Share Posted January 30, 2015 I read an article about 20 years ago and I still remember it ....... it said a person in there 30's would need £3,000,000 ($4,800,000) to live an average life (as in normal house, normal car, maybe 1 holiday per year , no massive expenses etc) if they didnt plan on working after they got the money...... Makes you think ..... that was 20 years ago, I could spend £1,000,000 on a house easily and that would just be an above average house ......... 1 Link to comment Share on other sites More sharing options...
The Machine Posted January 30, 2015 Report Share Posted January 30, 2015 (edited) Thanks everyone for your input / feed back -- These past 6 years have been very enlightening for me but I bet for all here -- I have lived a very frugal lifestyle - leaving home at just barely 17 yrs old -- with a wrecked car and no money in my pocket -- I did have a job though -- Sometimes cheese crackers were my lunch -- My parents were very strict and while at home and working I did pay a small room & board from my earnings -- A curse then in my mind but a valuable lesson for survival & money management when I decided to leave home (under unfavorable conditions, sad to say) My life has changed a lot over the years as I have experienced many set backs from being robbed or just poor economy -- I have been self employed most of my adult life and that in of itself brings a lot more challenges (IMO) - A million dollars really is a lot of money but even more so to the mindset when you do NOT have huge expensive material desires -- I feel that age & wisdom can play an important part in the scenario -- The younger "seem" to be more materialistic and undisciplined in their spending -- I could summarize by saying -- You either augment your means or diminish your wants -- but if you are "WISE" you can balance that to your advantage - UNEEK exactly it all depends on your stage in life ..... to a 60+ year old $1,000,000 will see them living the high life till they depart this mortal coil, but to a 20 year old it might last till their 40. I too paid my parents lodge money to cover food/ heating etc as soon as I started working ..... it is pretty normal in this part of the world, there is no such thing as a free ride and it does teach a vital lesson. In my position right now $1,000,000 is not that much money ..... it euqates to about 5.5 years pay from my day job Edited January 30, 2015 by The Machine 1 Link to comment Share on other sites More sharing options...
umbertino Posted January 30, 2015 Report Share Posted January 30, 2015 Thank You Chess, I feel I do much better researching helpful - enlightening - thought provoking articles instead of giving my total energy & thinking to this dinar saga which consists of lots of speculation and rumors - lol Agreed 1 Link to comment Share on other sites More sharing options...
UNEEK Posted January 31, 2015 Author Report Share Posted January 31, 2015 WOW Machine, yes things sure have changed -- and I looked at that figure in error the first time - WOW again -- That is 4 Million !!! and 2 score years ago!!!! I still feel that with some discipline and professional guidance that a million bucks can go a long way Link to comment Share on other sites More sharing options...
UNEEK Posted January 31, 2015 Author Report Share Posted January 31, 2015 (edited) exactly it all depends on your stage in life ..... to a 60+ year old $1,000,000 will see them living the high life till they depart this mortal coil, but to a 20 year old it might last till their 40. I too paid my parents lodge money to cover food/ heating etc as soon as I started working ..... it is pretty normal in this part of the world, there is no such thing as a free ride and it does teach a vital lesson. In my position right now $1,000,000 is not that much money ..... it euqates to about 5.5 years pay from my day job Good Points Machine -- I meant to make mention of some of those earlier and got distracted -- much depends on our education - our mindset / attitude - not so much age as the wisdom at the age -- some 30 yr olds could be wiser than some at 60 yrs -- lol many factors can come into play - I have more money now than I have had in previous years - for several reasons -- I work many more hours but have less overhead -- lol anyway -- the point I wanted to add is that because I have a little more and understand inflation I will allow myself to spend a little more for that lb of butter instead of doing without or buying margarine - I feel blessed in a way - but everything comes with a price - I am still frugal in many ways but it is by choice - Thanks for sharing to the thread Edited January 31, 2015 by UNEEK Link to comment Share on other sites More sharing options...
The Machine Posted January 31, 2015 Report Share Posted January 31, 2015 (edited) Good Points Machine -- I meant to make mention of some of those earlier and got distracted -- much depends on our education - our mindset / attitude - not so much age as the wisdom at the age -- some 30 yr olds could be wiser than some at 60 yrs -- lol many factors can come into play - I have more money now than I have had in previous years - for several reasons -- I work many more hours but have less overhead -- lol anyway -- the point I wanted to add is that because I have a little more and understand inflation I will allow myself to spend a little more for that lb of butter instead of doing without or buying margarine - I feel blessed in a way - but everything comes with a price - I am still frugal in many ways but it is by choice - Thanks for sharing to the thread Dont buy margarine ...... It is one chemical compound off bieng plastic ...... bacteria wont even grow on it http://therealfoodguide.com/what-is-margarine-and-why-is-it-bad-for-you/ Edited January 31, 2015 by The Machine 1 Link to comment Share on other sites More sharing options...
UNEEK Posted January 31, 2015 Author Report Share Posted January 31, 2015 Point Well noted Machine -- I have not bought margarine in probably over 15 yrs -- I am frugal but food and my health are not something I take lightly or scrimp on lol - I hope others read your post and take heed -- I am not perfect but I do make as many healthy choices as I can live with -- I have never smoked or used drugs - I do not drink alcohol but I do have a weakness for Pepsi -- not the diet ones either -- Sugar is another weakness I wish I could get over -- but I am on no medications and I am only about 10 lbs heavier than I would like to be -- or considered over weight - Link to comment Share on other sites More sharing options...
truthis Posted January 31, 2015 Report Share Posted January 31, 2015 Hi uneek take chromium supplement for sugar cravings. it helps all withsu sweet tooth, chocolate or any other sweet stuff. Thanks for your posts over the years 1 Link to comment Share on other sites More sharing options...
new york kevin Posted January 31, 2015 Report Share Posted January 31, 2015 A far better article than I thought it would be. True about Robin Williams and the pro sportsmen. Yes 1 million dollars is a lot of money. Yes with es more discipline. Yes if we become millionares we must invest wisely and with discipline. We also must learn to live off the interest, never touching the principle. Unless you buy something like a McDonalds franchise. JMHO. 1 Link to comment Share on other sites More sharing options...
dog53 Posted January 31, 2015 Report Share Posted January 31, 2015 1 million would see me to my grave. I live a simple life that I love and would not live any different. Well thats not entirely the truth. I would always have a extra package of brand new socks. Link to comment Share on other sites More sharing options...
UNEEK Posted February 1, 2015 Author Report Share Posted February 1, 2015 Hi uneek take chromium supplement for sugar cravings. it helps all withsu sweet tooth, chocolate or any other sweet stuff. Thanks for your posts over the years Thank you for the info -- will do some research -- can you provide a link or anything further I know nothing about this one in spite of the knowledge of many others -- how much " what form how often ?? thank you so much - my project for later today !! Link to comment Share on other sites More sharing options...
Shelley Posted February 1, 2015 Report Share Posted February 1, 2015 Thanks Uneek... You should repost this once a week to remind all of us to not get crazy !!! 1 Link to comment Share on other sites More sharing options...
UNEEK Posted February 1, 2015 Author Report Share Posted February 1, 2015 Hello Shelley -- well I kinda agree with you but don't think the admins would agree exactly if the same article -- I will strive to be a little more creative and post more "similar" ones to keep us aware - attentive - and hopefully wiser with our decisions - I will spend a chunk at first to replace my 125 yr old house and 9 yr old car lol but that won't exactly happen over night as I don't even have them picked out -- I feel many of us want to be wise with our money and will be but I also feel some spending right off the bat will give us some relief and satisfaction for being on this long ride -- lol Link to comment Share on other sites More sharing options...
Candy01 Posted February 1, 2015 Report Share Posted February 1, 2015 moose 57, I am WITH YOU!! AMEN, UNEEK!! FABULOUS post!! This sums up my feelings EXACTLY!! :D 1 Link to comment Share on other sites More sharing options...
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