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How much money does anybody actually need?

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posted on Jul, 26 2011 @ 06:54 PM
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How much money does anybody actually need?



I have thought about this for quite a while, usually when pondering what I would do if I won the lottery. Obviously, I would go crazy with some of the money, buying things I don't need, but I would also spend it on my family. Buy my parents, brother and myself new cars and houses. Give to some local charities. But after the cash “high” (spending binge), what do you do?

Put it in the bank! I know, some people are going to call me crazy but hear me out.

Wells Fargo Savings

I looked up the savings rates for Minnesota branches of Wells Fargo as an example. The best APY I found on their site was the High Interest Savings Account which is currently 0.15%. Compared to the basic savings APY of just .03% it sounds great. Ok, so I won the lottery and put $25 million in the high interest savings account. That money earns me $37,500 per year just from interest. That's over $3,000 per month for doing absolutely nothing! That's almost a grand more than I was making at $14.40/hour for 40 hours/week.

And that's at today's piddly almost nothing interest rate thanks to the Feds. Just think back in the day when savings accounts earned 2-5% interest! Just $1 million at 2% APY is $20,000 per year in interest.


Historical Savings Rates

Now lets look at the super rich. Warren Buffet is worth $50 billion according to Wiki. Now I'm not naive enough to think that's all cash but he must have some money in the bank. Let's say $1 billion. At that same 0.15% interest rate he would earn $1.5 million per year in interest. I don't think I would know what to do with all that money.

On top of all this, I'm sure people with lots of money get special rates and accounts not available to every day people. I have no idea how to verify this but I'm sure it happens. Obviously this isn't the way to maximize profits on your money but is mainly just a thought exercise. How much money can someone possibly need to maintain their lifestyle? I know I could easily live off $36,000 per year and a lot of people in the US currently do.

Please refrain from turning this into a political debate. All thoughts, comments, and suggestions are welcome.




posted on Jul, 26 2011 @ 07:04 PM
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rich people like the money, status and power that comes with having 100 million in the bank. and on top of that, they think that's little compared to someone who has 3 billion.

those people would probably feel poor with just 1 million in the bank.

it's not all about what you can buy, but knowing you could buy anything.



posted on Jul, 26 2011 @ 07:05 PM
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I need £50,000 and then I would be happy, I don't need more than that. A simple life is an enjoyable one.



posted on Jul, 26 2011 @ 07:06 PM
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I have thought about this as well. I think you would have to be very careful right from day one. For example, if on your spending spree you bought a very expensive home and vehicles then it would become more difficult to live on the 36k per year. You have to factor in the high property taxes that come with your beautiful new home. Also upkeep on a house of that caliber would be expensive. How about the maintenance of the expensive cars?

There are many things that come along with purchases at that level that must be considered.

I often hear people say that winning millions would not change them. But I think that you can't help but change. You will practically be forced to moved from your neighborhood to avoid the constant knocks at your door asking for $$.



posted on Jul, 26 2011 @ 07:20 PM
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Easy;

30-600 Acres of Land: $30,000 - $200,000
Solar Equipment: $30,000
Water Storage and Purification: $40,000

Being 100% self sufficient.... Priceless.

I'd be setup for life and possibly my children's life with only $500,000 AUD.

Land rates you ask?
Sell excess produce from your land...
This would include Fruit, Veg, Poultry, Meat, Honey.
Honey is a great way to pay for land rates per year as there is little to no maintenance required, easy to harvest, cheap to package.

We have all the information we need to become 100% Self Sufficient, Carbon Neutral (For the Global Warming folks out there) and productive.
All we need to do is, apply it.



posted on Jul, 26 2011 @ 07:24 PM
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The people infected with greed are unable to understand the concept of enough.



posted on Jul, 26 2011 @ 07:29 PM
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I spend $25 a month at the grocery store, the rest I raise and grow on 5 acres,debt free always have been, and barter all my extra, I still work here and there but only for cash,

I can get by on and live like a king for $4000 a year. It does not bother one bit that there are super rich people out there.



posted on Jul, 26 2011 @ 07:39 PM
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I would like just enough for a bit of land with a spring, it's own power generator like an MCat, Tesla Generator or other ambient power harvester. Aquaponics greenhouse, trombe. You know the basics for self-sufficiency, getting off-grid, and just living my life without intrusion.

About how much is all that worth?



posted on Jul, 26 2011 @ 07:44 PM
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Originally posted by Skada
I would like just enough for a bit of land with a spring, it's own power generator like an MCat, Tesla Generator or other ambient power harvester. Aquaponics greenhouse, trombe. You know the basics for self-sufficiency, getting off-grid, and just living my life without intrusion.

About how much is all that worth?


You don't necessarily need a spring, but it is always good to have multiple sources of water.
Don't bother with generators unless you are keen to make your own fuel. Ethanol is distilled from Sugar and can be added to Olive Oil (Pressed from Olives) to make Bio Diesel.

Solar is probably the most economical way to go for the moment.

Aquaponics is definitely the way to go, I can't argue that point as I have an Aquaponics setup myself.

As long as you do it yourself, your costs can be greatly minimized and if the land is good, you should be able to build your house from the dirt without needing anything else.



posted on Jul, 26 2011 @ 07:44 PM
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One problem with money is that you can't "stand still." You are either gaining money or losing money at any given moment. If your money is just sitting in a bank or in a pile under a mattress, its value is being eroded by inflation. So you "put your money to work for you" in the form of investments or whatever, which is a way to gain more money...which is just a fancy way of saying what you have is not enough. Funny how that works...for everyone, rich or poor.



posted on Jul, 26 2011 @ 07:46 PM
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For most of us, around 1.5 million would do it. You pay off your mortgage, your car, do a maximum contribution to your retirement savings and any other tax deferred vehicle.

Then, you invest the 1 million at about 5% (This can be done on a guaranteed basis) , and you create a life long income of 50K. Considering you have now paid off your house, car and long term savings, unless you have a very expensive life style, you are set for life.



posted on Jul, 26 2011 @ 07:52 PM
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reply to post by Ultraman2011
 


Can you please tell me where I can get a guaranteed 5% return these days. I am not trying to be contrary. I am serious, I would really appreciate any information.



posted on Jul, 26 2011 @ 07:59 PM
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Originally posted by Meatman
I spend $25 a month at the grocery store, the rest I raise and grow on 5 acres,debt free always have been, and barter all my extra, I still work here and there but only for cash,

I can get by on and live like a king for $4000 a year. It does not bother one bit that there are super rich people out there.


What country do you live in? This is very impressive. Did you build your home? Do you have to pay property taxes or do you have a homestead situation? I bet you have long work days taking care of everything.



posted on Jul, 26 2011 @ 08:00 PM
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Enough to buy land in Paraguay, build and run an estate, hire a private army and build and run a research facility for space technology. Should have some interesting neighbors.



posted on Jul, 26 2011 @ 08:02 PM
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Enough to pay off my car, insurance, mortgage, groceries, and money for some recreational use. I can live off $2000 a month. Is that too much?



posted on Jul, 26 2011 @ 08:04 PM
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reply to post by thov420
 

with tons of money, i'd go to a local shelter and adopt a dog.

turn the dog into a corporation, with accountant, tax specialist, etc.

hire specialists to train him, go on animal planet and win 100 dollars.

and claim my loses as a tax write off, just to show the stupidity of our tax system.

write a book, so the dog could help me with my rent.

i live on very little, my main problem is my friends and relatives who think spending money is needed to have a nice day.

if i have my basic necessities met, i can be happy and have a nice day in my back yard.



posted on Jul, 26 2011 @ 08:12 PM
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Jeez...I can't help but reply...forgive me...

At a combined income of about 120,00 a year...give or take...my wife and I seem to be okay...but really we are way above average and I know that...so why does it seem like so little....well for those living off of 20,000 a year...here is why...

We are absolutely spoiled...we have more than we need or could want...so what happens when it starts going away?

Well...the insatiable need to have things takes over...how much more do I have than them?

I am sure it is the same thing here...there is never enough money...if you find comfort in money...your doomed...if you find comfort without it...you might have a chance...

Wheres does you money come from? Who is the one providing you comfort? Now...what is money...just a means...to get to someone who wants more...there is no means...who wants more?

There is the question!



posted on Jul, 26 2011 @ 08:13 PM
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More.



posted on Jul, 26 2011 @ 08:15 PM
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reply to post by micmerci
 


In Canada at least, companies like Manulife sell a product called a (GMWB) Guaranteed Minimum Withdrawal Benefit. For every 100K you invest, you get a guranteed payout of 5%. So, in my example, for 1 million, you get 50K of income for life.



posted on Jul, 26 2011 @ 08:22 PM
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reply to post by Sovaka
 


That is the route I would go.

If I could get a decent chunk of a change, I would work on building a sustainable estate. Get it to the point where my only real bills are taxes, and repair costs for my home/cars/toys/etc. That, and going out now and then.

Even if I had like 10 million dollars I wouldn't buy a lambo or a huge house or anything. I'll buy some older cars that I like. Typhoon, Cyclone, GNX, souped up 5.0 (Maybe a fox body with the new coyote motor)

I think I could do great with like 10 million for the rest of my life. And I'm fairly young. What am I talking about, I could do great with ONE million the rest of my life, but I really think 10 is what would be "perfect" for me. I don't want to be super super rich, just seems like too many problems and worries.




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