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Contrary to some of you all, I happen to know a few people who take in excess of $300k a year. The majority of them live very modestly and do not indulge in expensive toys and unneccessary items. It's funny, I've actually gone out shopping with a few of them and they haggle over prices where one would think that they were living on a restricted budget. Suffice to say that they're quite comfortable from being so frugal
How would someone who is single spend that $300,000? I am curious.
One of the purposes of money is to make it multiply. Historically, 4 things have consistently risen in value: the stock market, real estate, art & collectibles. Most don't invest in art or collectibles. That leaves the market and real estate. Or simply put the $300K in an interest-bearing account that pays dividends.
You will find that folks with money don't spend it, they try to barter or offer you a reduced price, I had one tell me that the reason he has money is that he figures ways for others to offer thing to him for free. Thats how they stay rich they don't like to spend, he who dies with more toys still dies.
One of the purposes of money is to make it multiply. Historically, 4 things have consistently risen in value: the stock market, real estate, art & collectibles. Most don't invest in art or collectibles. That leaves the market and real estate. Or simply put the $300K in an interest-bearing account that pays dividends.
Art or collectibles as investments? Don't think so. Real estate? Too much work for too little return. Stock? Yes. Check out Walmart, a company people either love or hate. You would definitely love it if you bought its stock in 1976. This table shows that $5,000 invested in Walmart that year is worth $5,598,331.15 today.
I make about $313k. I spend about 65% of it on one form of tax or another. Most of my money is used by big government for illegal and unnecessary wars, and scams like social security and medicare, which have no assets and are operated like ponzi schemes. It feels great knowing the vast majority of my hard work is being used by a criminal enterprise (congress) to bilk our most vulnerable Americans. Read this if you want to see where the wealth in America is really going: thenationdivided.blogspot.com.
If you do like the good detectives do, you will find that nearly all the wealth in our country is divided between the two houses of congress and their Wall Street short-selling cronies.
It's not too difficult to spend money. There are many people that make this kind of money but blow it all and have nothing really to show for it after a few decades which is really sad. Then there are others that diversify and invest it well.
I'm not sure if you are talking about $300k gross or $300k net. Either way I know it's a significant amount of money for a single person to make.
There are some correct comments above saying that most single people making this much are working insane hours. I know I was. I'd often work 17 hour days. When you're single and have no kids you can work these kind of insane hours.
The wise ones that make this kind of money will diversify it and buy income generating assets like rental properties. Yes, you will want it working for you in the stock market as well as long as it's well diversified. Someone gave the example of Walmart but I could just as easily give you many other examples of companies that were big but totally failed and their shareholders totally lost everything. So the key is to diversify it.
Still, it's easy to spend money doing things like traveling internationally, dining out to nice restaurants, buying the latest gadgets, luxury cars, etc. When I was single and making great income, I'd invest much of it, I'd pay for my cars with cash and keep the car for many years. I'd make extra payments to my house payment to pay it off as soon as I could, buy investment properties. Probably the biggest expense was taking exotic trips around the world which was wonderful seeing new cultures and new countries.
And those that said taxes take up a BIG part of your salary are correct. Taxes always hurt when you're making that kind of money but I'd rather make a lot of money and pay a lot of taxes vs. make nothing and pay no taxes. Such is life.
When I was single and made $300K I mostly spent it on crack and hookers.
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. Suffice to say that they're quite comfortable from being so frugal
