I had a thought this morning while in the shower. What would I do if I was given $1,000,000, after taxes were cleared? This money could be in the form of a lottery winnings, an inheritance, some random stranger handing my a bag of money (hopefully not stolen from somewhere else though!)... the point is, it doesn't matter where this money comes from. What would I do with it? I mean one million dollars really isn't that much money in 2024, right?
Ah, but it IS! Look. If I write out all my expenses just to live for right now I have:
Rent: $20,700.00
Electricity: $ 1,800.00
Phone: $ 2,400.00
Internet + TV: $ 2,400.00
Transportation: $ 1,080.00
Health Insurance: $ 960.00
Food: $ 3,600.00
Total: $32,940 per YEAR.
If I were to invest this one million dollars in a high-yield savings account, or to invest this money at a guaranteed rate of 5% interest, that's simply $50,000 in interest payments per year, right? I know I'm probably over simplifying this. Us poor people aren't taught financial smarts in school. Right now, I'm killing myself slaving at a job to earn about $28,000 after taxes. With this simple investment, I wouldn't have to work another day in my life! I'd be set. Granted, I wouldn't be traveling all over the world, neither would I be having the luxury car, or the huge house to live in, but if I didn't change anything about how I was living, I would be free to pursue my passions all day, every day without the stress of working.
Furthermore, I would take this money and put it into a Trust. The extra money that I don't need for my living expenses, I would invest back into the High-yield savings account, and that would grow my money. Since the money is in a trust, the Government can't tax it if I die. I know this probably isn't 100% accurate, but I think I'm at least close to figuring out how something like this would work.
Now, I just need to figure out a way to be given my one million dollars! Hmmmm ???
You'd have to know how to invest & be quite savvy. Some people hire investors to help them with this.
I wouldn't pass up a million dollars lol
I'd pay off some debts, remodle the house some and maybe own a video arcade.