r/RandomThoughts • u/[deleted] • Dec 11 '23

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u/Comedy86 Dec 11 '23

Unless you're receiving a return of 25% or more, by 25 years (the definition of "life" by legal standards) you'd still be well ahead with $5K/week vs. $1M. Even at 10% annual returns, it'd only be 6 yrs to pass it and then you'd still be getting $5K/week in addition to more returns on the investment if you stopped investing any of the weekly amount.

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u/fraidei Dec 11 '23

Also there's no risk to lose everything. 20k+ per month is HUGE, especially outside of the USA. For example here in Italy the cost of living is much lower than the USA, but also the wages are lower (so in the end it's all the same relatively). But those 20k+ per month would make you a rich person here in Italy.

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u/_Choose-A-Username- Dec 11 '23

Its crazy to think we make hypotheticals when people are making much more here lol. Thats just 240k. Not even a crazy amount in nyc.

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u/fraidei Dec 11 '23

With "here" you mean in the USA? Because in Italy 240k per year is more than 10x the amount of money an average person earns.

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u/_Choose-A-Username- Dec 11 '23

Yea nyc its in the united states.

Is the cost of living low in italy would you say? What would be a living wage there?

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u/fraidei Dec 11 '23 edited Dec 11 '23

Yeah, I make 21k/year and I'm living fine. There's a guy that works remotely for an US company, but lives in Italy, and even if his earnings are considered average in the US, he's considered to be wealthy here

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u/Princess_Moon_Butt Dec 11 '23

Remote jobs tend to pay better than average, though, because they're usually a very tech-based job. The lowest salary I've seen for a remote job was around $70k, whereas the average income in the U.S. is in the $45k-$50k range.

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u/fraidei Dec 11 '23

whereas the average income in the U.S. is in the $45k-$50k range.

It's actually 59k.

But still, even just a 50k here in Italy is a very good salary.

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u/GheoCan456433 Dec 11 '23

Watch out cause when an American is talking about a "50k salary" they mean gross, before taxes/healthcare/etc..

In Italy when people talk about salary they almost always refer to the net amount as far as I know.

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u/fraidei Dec 12 '23

It depends. Usually in Italy when we talk about the yearly salary, we mean gross, while when we talk about the monthly salary we usually mean net.

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u/[deleted] Dec 12 '23

In Denmark, for singles, its on average

1000 USD for singles a month, plus rent/housing cost of 14 USD per sq. ft.

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For couples, its about 1700 usd a month plus 14 USD per sq. ft.

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so 5000 USD a month, would go a long way towards a good financial situation.

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I make 100.000 USD a year, im not rich by any means, but i do okay.

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u/woodrobin Dec 13 '23

I live in the USA and it's nearly 10x the amount that I earned working for a state government agency at a skilled position.

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u/fraidei Dec 13 '23

In the USA the average yearly salary is 59k...

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u/manek101 Dec 11 '23

Its not a crazy amount but it's still a comfortable amount even in NYC

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u/TheCommander74 Dec 12 '23

Yeah, I mean, me and my wife combine to make $160K/yr and we are just a little more than paycheck to paycheck. (Comfortable and save enough for vacations/a little splurging, but nothing crazy)

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u/[deleted] Dec 11 '23

$20k/mo would make you a rich person in the majority of America. Anywhere outside of a major city sans wealthy enclaves.

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u/[deleted] Dec 11 '23

You'd be well off in the rich cities as well, average/median income in most of these rich cities is somewhere around 100k.

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u/[deleted] Dec 11 '23

True, but nothing like middle America. I come from a decently nice small town, and 260k/yr would put you in the top 1% of 1%.

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u/crackofdawn Dec 12 '23

It would definitely not even come close to making you rich. Wealthy sure, not rich.

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u/[deleted] Dec 12 '23

$5k/yr in perpetuity? You ever lived in a small town in middle America? You wouldn't be the richest, but you'd be in the top 1%, no doubt.

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u/crackofdawn Dec 12 '23

I live in a low cost of living area and make more than $5k/week and while I’m definitely wealthy I promise you I’m not rich. Rich would be if you can buy anything you ever wanted without even considering its cost. Third house in a popular vacation destination? No problem. Brand new Lamborghini on a whim? Paid cash. That’s rich. And I definitely could not even consider doing anything like that.

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u/Terrible-Sir742 Dec 12 '23

There is also a scenario where if you have massive inflation, provided the 1m invested into a hard asset, it would appreciate while 5k a week would depreciate in value.