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As they say, look around you, you are who you hang with. If you listen and think like family or friends who are poor you'll continue being just like them. It's similar to a man/woman on the verge of divorce taking advice from a divorcee in how to fix the marriage. Maybe that divorcee wants to have someone to hang with.
I you're a millionaire when you're 3, it's a pretty big deal. If you become a millionaire when you're 65, you're in trouble.
Depends on household size, location, and desired lifestyle. In high-cost areas and for couples, the lifestyle might be what many would consider limited. OTOH, a passive withdrawal of $35k/year might be OK for a single in a low-cost area who doesn't mind roommates and limited travel.
This is a long thread and I didn't get to read it all yet. A million doesn't go quite as far as it used to 20-30 years ago, that's for certain. But it's nothing to sneeze at either. Think of it in the opposite direction, a million in debt then you can "feel" how much it really is.
This is a long thread and I didn't get to read it all yet. A million doesn't go quite as far as it used to 20-30 years ago, that's for certain. But it's nothing to sneeze at either. Think of it in the opposite direction, a million in debt then you can "feel" how much it really is.
Question? Did that $million in debt buy me an asset that produces a positive cash flow at the same time reducing the principle / increasing my equity in the asset?
But no, a million doesn't go as far as it did 20-30 years ago.
Depends on household size, location, and desired lifestyle. In high-cost areas and for couples, the lifestyle might be what many would consider limited. OTOH, a passive withdrawal of $35k/year might be OK for a single in a low-cost area who doesn't mind roommates and limited travel.
Different strokes for different folks.
I live in a high cost area and help several senior homeowners in my neighborhood.
They are all long time owners with some going back the to 1950's... homes range in value from $400k to over 700k. Many live on just Social Security from a lifetime of work with monthly checks averaging $2000 to $2600 and have no problems paying their bills and keeping up their homes.
We do have one saving grace in California and it is Prop 13 which bases property tax on purchase price plus inflation factor capped at 2% annually.
So one of my senior 30k a year friends was paying $1800 annual property tax and the new family that just bought her home will pay over $9000... again based on purchase price.
I find a lot of older people can manage quite well and thrive on modest income by their lifestyle and keeping expenses in check... such as having a low and stable property tax or not having to deal with things like rent increases, new car payments, expensive cell plans... etc.
All of them love their homes and spend much time gardening... which gets them outside, interacting with people and is a very low cost way of doing something they enjoy... and some are so frugal as to make them millionaires with home and savings... of course living a simple lifestyle to 101 made it possible for one friend.
Question? Did that $million in debt buy me an asset that produces a positive cash flow at the same time reducing the principle / increasing my equity in the asset?
But no, a million doesn't go as far as it did 20-30 years ago.
A million doesn't go as far as it did 3 or 4 years ago with home prices up 50% in this period.
"Think about your five closest friends. Take each of their salaries and add them up. Now divide that figure by five. That final number is going to be how much money, roughly, you’ll make each year. I don’t mean that you should ditch your broke friends, but you should also make new friends who are more ambitious."
If you don't think a million is a big deal then send your extra $ to me, no big deal.
Every dollar you earn and put to work is a big deal.
Key, you earn and "keep" so you are able to put to work. Spending it or giving that money away because someone else thinks they are entitled to it will not help you build your wealth or $million.
A million doesn't go as far as it did 3 or 4 years ago with home prices up 50% in this period.
That's kind of a short sighted stat given the 5-6 year time horizon is flat to up modestly in a lot of areas
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