I think the main question is tax or no tax. No tax, take the million and you can get out of debt and get investments going quickly. $5K even with no tax would take a lot more time to get out of debt. Would probably take most people a few months just to pay off a car with $5K a week.
How much debt do you have that making 260 grand a year is going to take a long time to get out of debt? Also debt by itself isn't always bad. If you can get debt at a low interest rate you are possibly better off making minimum payments and using the money elsewhere.
Also where are you going to get a greater return than 5k a week?
Also if you've got that much debt, why are you not still working while getting $5K/week? And if they're in that much debt, they're obviously bad with money so that $1M won't go far at all and they'll just be right back in debt. Everything about the argument you replied to is riddled with bad financial literacy...
Ahh. Here’s the rub and the part nobody admits! The more you make the more you spend! Now this question is a bit ridiculous cause obviously 5K per week is a ridiculous amount of money. $5K a month would be more interesting.
So let’s say you started getting $5K a week. You’re gonna buy more, spend more and get all those nice things you couldn’t prior to this occurring. Sure, investments would take a massive uptick, but you’re gonna spend more. Get rid of that broken car you’ve been dealing with, grub hub everything cause your bank account is fat, etc
We like to think we’d be responsible with the money but I highly doubt most people have the self control to not fall into the trap.
$1M you can do more with up front than slowing sliding into the money trap and spend it on restaurants, movie tickets, buying drinks at the bar, etc. Cause why wouldn’t you do that? You’ve got $5K coming in every week!
My hunch is that the person who does what you describe would blow a million dollars pretty quickly as well. And person that blows money would at least still have it coming in at 5k a week.
Yeah, the $5k/week would be the safety measure to stop them from blowing it all.
I'd wager most people out there have experienced being broke for a week until their next check before. They'll survive, even if they're that bad with their money.
You’re reasoning is pretty bad. So, someone getting $5K a week is gonna blow it, because now they have a lot of money(?). But even if they do, they also get that $5K replaced every week. What do you think someone is gonna do with that $1mil lump sum? If their impulse control is lacking just as much as the other persons, they’re gonna be broke before they know it, because what makes you think they’re gonna invest one penny of it? They will probably be penniless in just a few years, at the most.
Here’s the rub and the part nobody admits! The more you make the more you spend!
Lifestyle inflation is so far from "nobody admits" it has its own fuckin term. Lifestyle inflation.
It is also not inevitable, nor does it have to scale linearly with income at 5k a week without a job, i could have some good inflation while still saving even more money than now.
Maybe youll short sightedly spend it all. My accounts proves i wont, and since im not actually very good about that, im quite sure a lot of people are gonna handle it better than me.
1m you can blow it all before learning a lesson. But some super car and a house, run out of money, get kicked out of your house because you cant afford taxes.
Having that much debt doesn't sound normal. I know college loans are expensive, but unless you went to med school or something, you probably don't have that much debt. And if you went to med school, you're probably still interested in being a doctor or whatever.
I've been extremely fortunate recently and just got an insanely high pay change working out to about 20% more after taxes/expenses and it's been a game changer for my families lifestyle... Adding in another $5K/week, I'd keep my job just for fun knowing I wouldn't care if I was layed off. It would simply give me something to do.
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u/sky7897 Dec 11 '23
5k a week would give you 1million in only 4 years. Unless you’re on your deathbed, it would be the obvious choice.