I saw statistics once, I think in an MSN article. The number of people who spend more than they make in a year just blew me away. ( 70%? ). My brothers appear to be really good at financial management, but my sister is really bad. I am somewhere in the middle. ( I don't spend frivolously, but when I do it's usually a big purchase ).
I had the opportunity to sit down with a Venture Capitalist a while back. What he told us is that the first 3 million is the hardest to make. Once you have that, you can live off the interest for the rest of your life. He was assuming 10% interest (in the stock market). So, $300,000 a year. Yeah, I could live of that. On the other hand, if I had 3 million I might put it into a start-up company and end up be broke again in 3 months. At 03:05 PM 1/28/2005, you wrote: >Subject: I now live with a millionaire >From: Charlie Griefer <[EMAIL PROTECTED]> >Date: Fri, 28 Jan 2005 14:09:12 -0500 >Thread: >http://www.houseoffusion.com/cf_lists/index.cfm/method=messages&threadid=15811&forumid=5#145222 > >Ray - > >It all a matter of perspective. > >About 10 years ago, I was making $7.50 an hour, working two jobs, and >donating various bodily fluids on a regular basis...and this was just >to survive. I remember seeing a job for HTML developers paying (up >to) $35k and thinking, "wow, if I could make $35k a year I'd be SET". > >10 years later I make more than $35k. Significantly more. For a few >years, my wife worked as well and our combined income was well over >$100k. We had no kids (our oldest is now 2 1/2). > >Well, now my wife no longer works (but I still make significantly more >than $35k) and still struggle to make ends meet. > >For those without discipline (like me), and I'd actually argue that >for -most-, our quality of living standards are raised proportionately >to our income level. > >Hindsight being 20/20, I kick myself on a daily basis for not handling >our finances better (specifically, saving more when the wife was >working...well, saving when the wife was working). > >I can see where I'd be one of those dildos that win $5million and blow >it. Hopefully with the experiences I've had, I wouldn't...and I'd >learn from my mistakes...but I can certainly see how it happens. > > > >On Fri, 28 Jan 2005 12:58:54 -0600, Raymond Camden <[EMAIL PROTECTED]> wrote: > > That's one thing I never figured out - how folks can go broke after > > winning millions. If I understand right... and I may not... a normal > > treasury bill pays what.... 5% or so? That would mean a "small" > > lottery winning of 2 million dollars could generate 100k in interest. > > Taxes would take a third I think, leaving you with like 66k per year. > > That's a lot more than most folks make. If you don't quit your job, > > and you earn 50k - your now earning a 6 figure salary. > > > > If you win 5 million - it would be 250k before taxes, which would be > > over 100k a year. That is an insane amount of money to live with - > > live NICELY with. Why would you even bother touching the principle? > > > > > > On Fri, 28 Jan 2005 10:44:26 -0800, Ian Skinner > > <[EMAIL PROTECTED]> wrote: > > > I suspect after taxes, and who knows what else he won't be a > millionaire anymore. He'll probably only have eight or nine hundred > thousand dollars left. But still should be plenty of money to change his > life. > > > > > > Now the question is; will he be stupid or smart with the money. > > > > > > I find it very interesting how many people who suddenly come into a > lot of money, via lotteries or what not, are broke again in just a few > years. It is awfully easy to burn through a large amount of money and > suddenly find oneself in a financial world of hurt. > > > > > > > -- Jeffry Houser, Web Developer, Writer, Songwriter, Recording Engineer AIM: Reboog711 | Phone: 1-203-379-0773 -- My Books: <http://www.instantcoldfusion.com> My Recording Studio: <http://www.fcfstudios.com> My Energetic Acoustic Rock Band: <http://www.farcryfly.com> -- When did Reality Become TV ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~| Sams Teach Yourself Regular Expressions in 10 Minutes by Ben Forta http://www.houseoffusion.com/banners/view.cfm?bannerid=40 Message: http://www.houseoffusion.com/lists.cfm/link=i:5:145298 Archives: http://www.houseoffusion.com/cf_lists/threads.cfm/5 Subscription: http://www.houseoffusion.com/lists.cfm/link=s:5 Unsubscribe: http://www.houseoffusion.com/cf_lists/unsubscribe.cfm?user=11502.10531.5 Donations & Support: http://www.houseoffusion.com/tiny.cfm/54
