The average human takes 20000 breaths per day. For comparison, the average American take 4700 steps a day so steps actually win since the break even point is around 4000 steps.
Also should be noted, if you took that 1 mil and just put it in a bunch of high-interest savings accounts, you’d be averaging a little over $3k/month just in the interest earned.
It does make me wonder, at what point is the guaranteed $x a month a better call than one lump 1 mil?
You don’t need a degree in finance to do this calculation. You are simply looking for the present value of a stream of income.
It depends on what interest rate you think is “risk free”. Right now treasuries range from 5% to 3%. Just divide the yearly dividend (12 * 50) by that interest rate. $50 per month risk-free in perpetuity is worth $12,000 to $20,000.
But you should already be filthy rich at that point, so who cares 🤷♂️ the choice is largely irrelevant after a few years and, regardless of which option you choose, you should be well into the millions after a decade.
Steps let me build up actual wealth over the course of just a year or two. Breathing keeps me comfy my whole life, but I can’t be really wasteful for a few years.
This is a question of passive income vs active.
Passive is king. You breath when you sleep. When you get too old to walk, you still breath.
The average human takes 20000 breaths per day. For comparison, the average American take 4700 steps a day so steps actually win since the break even point is around 4000 steps.
Jesus, I range anywhere from 9-15k steps every day. I guess I’ll take steps.
Same here. I’ll take steps and in 10 years I’ll be set up to make more than the breathers even if I become a paraplegic.
For anyone curious (1000000/50)/12 is 1666.66 which is how many years you would have to live to make a million dollars.
Whoever thought that $50 a month is any sort of good income is brain dead.
Also should be noted, if you took that 1 mil and just put it in a bunch of high-interest savings accounts, you’d be averaging a little over $3k/month just in the interest earned.
It does make me wonder, at what point is the guaranteed $x a month a better call than one lump 1 mil?
You don’t need a degree in finance to do this calculation. You are simply looking for the present value of a stream of income.
It depends on what interest rate you think is “risk free”. Right now treasuries range from 5% to 3%. Just divide the yearly dividend (12 * 50) by that interest rate. $50 per month risk-free in perpetuity is worth $12,000 to $20,000.
Put it in safe low-interest investments and you’ll likely still be making far more than $50/month
But you should already be filthy rich at that point, so who cares 🤷♂️ the choice is largely irrelevant after a few years and, regardless of which option you choose, you should be well into the millions after a decade.
Steps let me build up actual wealth over the course of just a year or two. Breathing keeps me comfy my whole life, but I can’t be really wasteful for a few years.
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