May 13, 2014

You've Already Made $1,000,000

Slow Growing Tree
Most people in this country will make more than one million dollars in their lifetime.

If you earn $30K per year, you'll see one million after 33 years of paychecks.
$60K per year, a million after 16 years of bacon.
$100K per year, you'll hit a million in 10 years.

You get the idea.

Totaling up all the money you've ever made is an interesting way of looking at saving and spending.

Crunched the calculator tonight and realized I've already made seven digits.  Been pretty structured with saving and investing.  Plain oats for breakfast every morning and an 8-yr-old filthy flip phone to save a buck is fine by me.

But dang a million in income already, and way less than that in savings...makes me realize I can do better.

$10,000 Cappuccino
All those paychecks add up to a healthy pot.  But a thousand tiny expenses tear up those Franklins:
  • $3 daily Starbucks eats $1,000 a year and $10,000 per decade
  • Six bucks a day for lunch at work will blow a $1,500 wad annually, $3,000 if both parents dine out
  • Leasing a new car every few years is $35K in ten years
  • Gasoline is a $20,000 spend over 20 years
  • Taxes take a third of everything
Try It Out
Pull out your 1986 Casio calculator watch, and roughly total up how much money you've made in your lifetime.

Does the number surprise you?  It did me.

Next post, I'll explain why $1,000,000 is not nearly enough (for retirement).


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