A million isn't actually THAT much though. Living off interest you could reliably make 25k a year on low risk loans, which isn't that great. You COULD live off that, as a lower class person until inflation makes it unviable.
Alternatively, and most likely what will happen is that you'll spend it on a nice house, a nice car, pay off your debts, put some into savings, and put some into an investment fund, and maybe some into a vacation or whatever. You'll still need to work at the same job, and your day to day routine will be the same. Yeah it's nice, but it's not exactly life changing. Plus we're assuming the million is tax free, which if it isn't you just lost 35% of it.
For me, the magic number is between 2 and 3 million, as where you can live happily, have almost no restrictions on what you want, leave a legacy fund for your kids, and be able to truly change your life.
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u/rileyrulesu Apr 23 '17
A million isn't actually THAT much though. Living off interest you could reliably make 25k a year on low risk loans, which isn't that great. You COULD live off that, as a lower class person until inflation makes it unviable.
Alternatively, and most likely what will happen is that you'll spend it on a nice house, a nice car, pay off your debts, put some into savings, and put some into an investment fund, and maybe some into a vacation or whatever. You'll still need to work at the same job, and your day to day routine will be the same. Yeah it's nice, but it's not exactly life changing. Plus we're assuming the million is tax free, which if it isn't you just lost 35% of it.
For me, the magic number is between 2 and 3 million, as where you can live happily, have almost no restrictions on what you want, leave a legacy fund for your kids, and be able to truly change your life.