Is $1,000,000 a lot of money?

Question: Is $1,000,000 a lot of money?

Answer:

Most people who thinks that $1 million is nothing much either works in 6 digit salaries paying jobs, or think of it in term of overpriced housing in areas where people make 6 digit salaries.

Assuming you are the lucky few in this planet to live in the Northern part of America or Europe, the GDP per capita (which is not exactly salary, but close enough) is US$37,477 [1]

Assuming you pay 15% of it as tax, that leaves you around US$30,000. Say you spend US$2,000 a month living cost, you have spent US$24,000. So the most you can save is US$6,000.

To save $1,000,000; assuming you save $6,000 a year with interest rate of 3%, it will take you 60 years to save that much:


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