The Millennial Gen Z future right here. F 🤡 🤡 🤡
Math Lesson on why $2 mil is not a lot.
Hourly Rate: $25
Hours per Year: 2,000
Years Worked: 70 - 18 = 52 years
Yearly Salary:
$25/hour * 2,000 hours = $50,000 per year
Lifetime Salary:
$50,000 per year * 52 years =
$2,600,000
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Lifetime Salary After Taxes:
Assuming a tax rate of 25% (for estimation), the salary after taxes would be:
Yearly After-Tax Salary: $50,000 - (25% of $50,000) = $50,000 - $12,500 = $37,500
Lifetime Salary After Taxes:
$37,500 per year * 52 years =
$1,950,000
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Other Expenses:
Rent:
$1,000/month * 12 months = $12,000/year
Over 52 years: $624,000
Electric & Water:
$100/month * 12 months = $1,200/year
Over 52 years: $1,200 * 52 = $62,400
Food:
$10/day * 365 days = $3,650/year
Over 52 years: $3,650 * 52 = $189,800
New Car (every 10 years):
$20,000 every 10 years * 5 cars (52 years / 10 years)
Total cost for cars over lifetime: $100,000
Car Insurance:
$80/month * 12 months = $960/year
Over 52 years: $960 * 52 = $49,920
Clothes:
$200/year
Over 52 years: $200 * 52 = $10,400
Gas (Fuel and Maintenance):
$2,000/year (estimate based on moderate driving)
Over 52 years: $2,000 * 52 = $104,000
Health Insurance:
$300/month * 12 months = $3,600/year
Over 52 years: $3,600 * 52 = $187,200
Total Expenses:
Rent: $624,000
Electric & Water: $62,400
Food: $189,800
New Cars: $100,000
Car Insurance: $49,920
Clothes: $10,400
Gas: $104,000
Health Insurance: $187,200
Total Expenses: $1,328,720
Lifetime Salary After Taxes Minus Expenses:
$1,950,000 (Lifetime salary after taxes) - $1,328,720 (Total expenses) = $621,280
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$621,280 is $32.75 per day during that period- if you can save it.
You also still need money if you live past 70 and you'd have to eat spam every day for 52 years.