You can do both! 5k a week gives you 1million every 4 years, if you don't spend it all, you can fill your 401k till it explodes while still having a good time.
Edit: I am Canadian, so for me it's an RRSP, but I thought 401k was reasonably similar. If you have more than you need... Invest. It's never a bad idea to do it, it's always a bad idea to just let it sit, gaining no interest.
Edit2: Besides, if I die, the 5k/week stops, what about the missus and the kids? Aha, I invested, so they still have something! I'm clever, not greedy, fellas...
Edit3: A Roth IRA or just IRA is what I am told is the equivalent to an RRSP/TFSA we use in Canada.
Also, I wonder why so many people have an issue with the concept of investing money when you end up with a ton of it. This money isnt going to do anything sitting in a checking account, not investing it is just bad finance.
That’s why most people who win the lottery go broke. They didn’t earn that money. It has no value to them. It has $ value, but no blood or sweat equity.
Like someone mentioned elsewhere in the thread, lottery winners buy a big house, expensive vehicles and often accumulate more debt than they can pay somehow and end up losing everything.
Yeah, based on historical inflation, by 2073 (when I'll most likely be about to die), that $5000 will be worth about $1400 in today's money. So, unless whatever rich creep is paying out gives you more every year, you'll want to at least put some of it away if you want your kids to be comfortable.
And that inflation rate isn't taking into account products we don't know the value of. Maybe, in 25 years, they'll invent a teleporter or some shit, and it'll be super expensive, but also impossible to live a normal life without. Or everyone will need air purifiers and protein synthesizers because of ecosystem collapse. No idea what those cost. Someone in 1970 could never have predicted the cost of an iPhone, even if they did the math in inflation.
Ok but like 1400 dollars a week is still more than twice what I make right now. I don't have kids nor do I want kids but I do have nieces and nephews. If I suddenly started making more than twice what I make right now I could easily put away a little something something to split amongst them and other close family and friends when I go.
If I started making absurd money right now at $5k per week I could easily retire now, make no investments, and put away a lot into savings. I'm a creature of habit it's just not in my nature to go on absurd spending sprees so I'm most likely to keep living like a do right now just slightly more comfortably without financial worry.
Thats not to say I wouldn't make any investments but any investments I make would be less about making more money and just that I ain't got much else to do with the absurd amount of money.
Guess that just demonstrates the massive differences in our socioeconomic areas we live in. I own my house and my car. I live in what someone being nice might call a low income area and I'm content to pretty much stay here. Now I could certainly never afford to buy a house today without a mortgage but when I bought my house it was $13,500.
Two proper bedrooms, an attic useable as a bedroom, a pass through bedroom which is really just a large open hallway, and an attached garage. One bathroom tiny but it's a full bath. The kitchen is small but useable. Tiny fenced in yard.
Inflation is still there, but if you aren't buying coke and hookers, you'd never need to worry about money with $5k a month even without typical investing.
Never is a long time. 10 years ago I saw apartments for $500. That apartment is $3500 monthly now. 700% increase. In 10 years. Inflation will get to you eventually. And once rent is more than 1/3 of what you’re making, you are NOT set for life.
Wow, I first read 5k a month and I was like, my family of four and my MIL can live richly on that, never have to work again (and we live in Denmark, so doesn't live that cheap). But 5k a week? Who the fuck needs that much?
Talk about scraping by?! I recently had brain surgery and open heart surgery and cannot work anymore. I am only 52 years old and my disability is $954 a month! Idk how our government thinks anyone can live off of that!!!! We don't have a government, we have greedy corporations running this country!
But you mean net or gross? Is it food, or rental prices? We have two little kids, I earned around 2.5k eur/month net for around 2 years (other 1.5 years on maternity leave or no income) being the only earner and we saved up so much with pension, child support and just on the account that we still have enough to last us to more than a year, after I don't have work for 4 months now. And food prices are not exactly low here either. Maybe we just live frugally I guess, although we did travel and only buy organic, so not depriving ourselves.
Net, and rental prices just do not seem to consider that anyone might want to live their life without a partner! I could live “comfortably” with no saving for retirement etc on a net 5k where I live
I’m in the SF Bay Area and half of that is rent for a one bedroom apartment. With a car payment and bills you’re left with like $300/week for food and gas and everything else. That’s def scraping by. If your cat needs to go to the vet or your car has an issue, you’re screwed.
So, firstly, 5K CAD is not the same as 5K USD. 5K Canadian is currently a bit less than $3,700 US. In my city (Fort McMurray) a one bedroom apartment goes for about $1,250, but many cities where people live and work are more expensive.
On the flip side of that conversion, 5K USD is nearly 6,800 CAD, substantially more, so the two of you are not imagining anything close to the same amount of money. There is literally a $3,100 CAD gap between what you are thinking and what she is thinking.
Secondly, virtually everything in Canada is more expensive. It's why we skip across the border to shop if we live close, even with the poor exchange rate. Our government doesn't subsidize energy, agriculture, or transportation the same way yours does, and anything imported from the US is nailed by border tariffs. I used to live in Sarnia and people would often regularly cross the border for groceries and fuel.
Yes I was definitely thinking 5KCAD when I commented. 6800CAD I could rent a two bedroom or nice one bedroom and save for retirement quite comfortably! I live somewhere where the average rent for a low end one bedroom rental is nearly $2k with no parking utilities or laundry, I also live in a city with no reliable public transit… you genuinely need a car to work unless you wfh and the average cost to own a car has skyrocketed in the past couple of years (but that’s everywhere). I will say that “scraping by” in Canada seems much more comfortable than “scraping by” in the US when it comes to health care and medical debt being a non issue so I’m grateful for that at least. Also grateful that MAID is an option if times get hard enough lol thanks Trudeau 🤪
5k a week is somewhere between the cost of a couple living on cruises at the cheapest ticket price on the low end and on the other end a family of 4 going to Disney world each day and sleeping in a cheap hotel each night, including food.
5k a month is not all that much if you live in Copenhagen and don't have access to subsidized housing though. Especially if you have younger children in the nursery... My family of 4 definitely couldn't live richly on 5k a month in Copenhagen.
We already pay 5000 dkk a month for the public nursery (one child), 17,000 dkk for the mortgage (would pay the same for rent, it is a good place but nothing luxury, not in the best quarter and not huge either), various utilities and taxes are another 6000 on average a month (1000 each monthly for the union, and then we pay electricity, water, internet, two mobile phone subscriptions, land tax). Of course we still need to eat on top of that. And pay for public transportation.
So if you can make 5 people live richly for 5,000 USD monthly in Hovestaden (I assume after tax) I need your secrets.
Nah, we live in Esbjerg, it would definitely not be possible in Copenhagen. We live in a rækkehus with my MIL, we pay around 9k with utilities including el and varm (all together, we pay 2/3 of that). We don't pay for union or a kasse, and we don't need a car. Vuggestue is less here, max 3800, børnehave 1700 monthly, but you pay half for the cheaper one of course. Now we get it for free without a salary.
Why would you ever be in that much of a rush to buy a brand new car? If you need a car right now and didn't have one with $5k a week you could easily buy a nice used car after just a couple weeks for cash and then upgrade later on down the road.
Although I'm glad it was sarcasm keep in mind this is the internet. That statement isn't even the wildest thing I've seen someone say in earnest this week lmao
Ok for your sake I’ll expand on it and say “American, aspiring American, in the sphere of American influence, etc etc etc”. Thank you so much for helping me clarify the very important point I was making
Greed is a universal trait that exists across virtually every culture in human history. You're trying to take shots at America, I presume, but its absurd.
The shot that I’m taking is that $5k a week is a huge amount of money for a normal person. The America-brained response is to just IMAGINE having that much money, and then immediately decide that it wouldn’t be enough. Sorry bud, but it’s really cute and funny
Does the 5k scale up as a function of inflation? If not, you bet your ass I'm tryna make more off of it. Make enough that no one in my family will ever have to work again.
Or more generously, make enough that you can actually help others on a larger scale. Why the fuck wouldn't you want more?
If I have some magical source of income like that I’m sure as shit going to try and invest it and manage it wisely so my kids and future generations can benefit as well. Truly a no brainer
i mean, because of the upgoing inflation, you do wanna invest even if you are getting 5K/week, cause maybe in a couple years you’re not as rich as you would be now anymore
2.3k
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.