If you just won a million dollars, would you quit your job?
Considering that I don't have a job, no. Nate and I have had this conversation many times. For one million dollars no one would be quitting their job. That amount of money doesn't really go far today. Maybe, if you are lucky enough to find a bank account earning 5% a year you could make $50,000 in interest. However you would have to pay taxes on that million that you won, so that would probably take you down to $500,000. At 5% the yearly interest on that would be $25,000. You would have to be crazy to quit your job to make $25,000 a year. I guess you could make the argument that you could live on $100,000 a year for five years, but think of all the income potential you would lose for being out of the work force for five years, with no good reason.
To get me to quit my job (or rather let Nate quit his) I would have to be able to earn at least a million each year in interest income. That way I would have enough for everything we need (and a few things we probably don't, HELLO CLEANING LADY!), be able to take a couple of vacations, buy a house, pay for the kids education outright, have enough to enjoy retirement and be able to do a lot of charity work. I still don't think I would ever stop clipping coupons or shopping sales and clearance racks or even live in a mansion. But it would be nice to not have to worry about money and things.
No comments:
Post a Comment