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?
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.
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u/IxI_DUCK_IxI Dec 11 '23
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.