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Frugality helps me survive on what I make. $40k salary a year actually comes out to ~$154/day. Assuming 2080 hours/year of workable time, this is 40k / 260 "wo
by trebor 15y ago
Frugality helps me survive on what I make.
$40k salary a year actually comes out to ~$154/day. Assuming 2080 hours/year of workable time, this is 40k / 260 "work days".
I get less than this at the moment.
If you can afford to invest 10% of your income for 2 years, then drop to 5% for the rest, in a mutual fund that averages 15%/year (they do exist) you'd have ~$813k after 30 years (at $250 the first two, then $125 the remaining years). At no further investment you'd have $323k after thirty years from the first $6k invested.
This ain't no drop in the bucket, but we post-modernist consumptive Americans aren't interested in self-sacrifice.
- deleted 15y ago[deleted]
- scottkduncan 15y agoSure, mutual funds can return 15% a year. The problem of course is figuring out which ones will do it in advance. Then repeating for 30 years.
- alttag 15y ago> Assuming 2080 hours/year of workable time, ... I've had recruiters try to sell me on this figure for salary calculations, or even worse, use 2085.7 (=365 * 5/7 * 8). That only works if you don't want a vacation. I use 2,000 hrs/yr both to factor in some vacation time and also to make the math easier to do in my head.
- trebor 15y agoSure, this is why the young kids with no family and no life outside work make buckets of money: they spend almost all their time in the office. A salaried position is nice, but even then some industries put the salary low and give bonuses to "dedicated" people like that. I'm not going to sugar coat it for myself, or for anyone else either. It's really hard for everyone in this economy, but especially for young folks like me who don't already own (or at least partly own) houses.