A million bucks.... 20 years from now?

[sparechange]

Thought this was quite shocking to see, of course noone on here suggests saving money for the long term and when you look at the math behind it..makes alot of sense.

Let's hope this is your big year, 2021 when you finally made the first million bucks. Time to splurge on that Ferrari, buy a mansion and start living the dream!

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Wait.. what!? I thought a million dollars is alot of money!?

I remember somewhere in Unscripted MJ mentioned the ''new million dollars'' is more like $5,000,000, when you consider our governments printing money and the cost of living going up and up, like the carbon tax increase that we'll be hit with soon as the PM promised not to hike everything, it's clear that ''having alot of money'' needs to be redefined. We can't do anything about it unfortunately since death and taxes are the only thing guaranteed in life, however we can always increase our income, the point of being an Unscripted entrepreneur! To be in full control of our life.

With the cost of housing only skyrocketing over the next few decades...

And our dollar being devalued over the next few decades from our beloved government from money printing....

What do you think is the new million bucks? Will $10,000,000 actually be worth something!?

 

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[Knugs]

I think you are absolutely right. I'm witnessing the same development here in Germany and it should actually scare everybody, who has a stable but a non progressive job. We are all getting poorer.

When the ice cream trucks used to come into my neighborhood roughly 20 years ago, I would be paying 0,25cents for a cone with 1 scoop on it. Now it cost 1,50.

Owning an apartment in my city has become a pure luxury no young family can afford. 5,500-6000 euros per sqm2 or 10,76 sqft. There is no apartment available below 300,000 euros. Most okish apartments start at 450,000-500,000. Ideally something you can fall in love with 650,000 - 1,000,000. We are talking apartments. Property prices have exploded in the last 15 years and so has rent. Paying 1000/month for basically a bed to sleep on. The rent eats up the savings, no way to save up for a deposit without family help. Even if you do save up for a deposit, the required deposit for a loan is in itself raising so quickly you can barely keep up saving.

Salaries are high in Germany but so are social contributions and taxes. No way can wages keep up with inflation. Since a lot of jobs have a earning-ceiling, when is inflation going to make even 6-figure salaries "poor"? Isnt that what happened in california?

My beloved country has a social system with a progressive tax system which helps really poor people to survive. That means the more you earn the more you give away. Since prices are so high we arent really rich when we have to give most away. No wealth building via job really possible. At the end of the day we have a few thousand more a month but we have no state that pays our rent, give us an allowance and has grants for literally everthing. What is the point when I net more per hour when im in 50% part time as I suddenly qualify for many more benefits?

So basically you rip yourself a new hole at school and at university to land a good career where you continue sacrifising your 20s and 30s to reach a good salary and at the end of the day you will still be fighting to survive, since it seems we will never be able to live like our parents could?

 

[Kevin88660]

Thought this was quite shocking to see, of course noone on here suggests saving money for the long term and when you look at the math behind it..makes alot of sense.

Let's hope this is your big year, 2021 when you finally made the first million bucks. Time to splurge on that Ferrari, buy a mansion and start living the dream!

View attachment 36229

2041 Inflation Prediction | Future Canada Inflation Calculator

CAD inflation predictor. In 2041, what will inflation look like?

www.in2013dollars.com

Here's the link if you'd like to play around with some numbers

View attachment 36228

Wait.. what!? I thought a million dollars is alot of money!?

I remember somewhere in Unscripted MJ mentioned the ''new million dollars'' is more like $5,000,000, when you consider our governments printing money and the cost of living going up and up, like the carbon tax increase that we'll be hit with soon as the PM promised not to hike everything, it's clear that ''having alot of money'' needs to be redefined. We can't do anything about it unfortunately since death and taxes are the only thing guaranteed in life, however we can always increase our income, the point of being an Unscripted entrepreneur! To be in full control of our life.

With the cost of housing only skyrocketing over the next few decades...

And our dollar being devalued over the next few decades from our beloved government from money printing....

What do you think is the new million bucks? Will $10,000,000 actually be worth something!?

How will money printing affect prices in the future. There is a lot of debate on this. I view is to separate things into 3 sections.

-Consumer Products
-Cost of Human Service
-Investment products

1) Contrary to popular opinion I think basic consumer products will continue to stay flat. Basically these are the groceries you buy. Cheap Money is accessible to the rich. The average Joe cannot get a near zero percent interest rate loan and is suffering from wage deflation from outsourcing and automation. This is exacerbated by enormous explosion of production capacity. Think of an expensive nokia phone in the early 20s..Technology is pushing things cheaper. Production can simplify expands. A lot of simple products with no brands basically have their price stayed flat for 15 years.


Most of the money flows towards speculation in the financial market and the rich will not consume more when their real estate or stock prices go to the roof. Basic Economics 101.

Again there is some concern as government in post covid is starting to pay people not to work. That may change the dynamic (Low production with increased spending power). But this could be just temporary.

2) Cost of human service. This is where most of the inflation has occurred when we talk about cost of living. Medical/education/plumbing service. This is because human effort and attention is difficult to scale. There is only limited number of qualified practitioners in any trade and each of them only have 24 hours. Again things might change if automation can replace human with machines and services become commoditized. But not anytime too soon.

3 )Financial assets. No doubt there will go to the roof and absorb most of the liquidity. All financial assets will go up in the long run. But there will be a lot of volatility. When everyone is screaming inflation we could be at a peak of a 2-3 years cycle (Now?).

The Takeaway is as follow
-Once you have amassed a pot money from your business it is time to convert them into a relatively safe pot of investment tp fight inflation and provide decent passive income

-How much is enough to retirement depends on if you are a DIY person. A millionaire in a literal sense, 1 million net assets exclude the house you are living could still retire. 4-5 percent yield plus 1 percent drawdown on capital. Basic necessity and essential cost of living aren’t going to the roof anytime for you, if you are okay with a not flashy car, live in a non-expensive estate and send your kids to public schools and use public hospital for medical services.

If you live in North America or Western Europe you keep cost low if you cut off your own weeds in the garden or diy when your tap is not working. Or fixing your own furnitures and so on. These probably is the lifestyle restriction for a millionaire but nothing more than a million.

In Asia is different because there is abundant of skilled and reasonably priced labor that nobody has the diy habit of fixing things at home. In Singapore servicing cost is low because there is a hugh force of foreign labor from neighboring countries. We do not even cook our own meals and there is decent and affordable cooked food for sale (not junk food).

 

[biophase]

I’d say that that is about the same as 2000 to 2020. And I’d say that that isn’t too bad.

You would expect things to go up about that rate. A car in 2020 that cost $20k would be $30k today, which IMO is about right.

This is why you need to invest in things because they give you a chance to beat inflation.

But some things don’t. A place I bought in Chicago is worth the same that I paid for it in 2004.

My very first home I paid $235k for in 1999 is worth $350k today. That’s about 50% increase. However it was worth $350k in 2004!

If you had some Amazon stock you would have blown the 50% away.

McDonald’s value meal was $3 in 2020 and is $10 now. That’s over 200% increase!

50% increase due to inflation is not that much.

 

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[Kid]

The young Rockefeller before he became oil tycoon , had a goal:





Except for meme, that's seriously correct, he's dream was to earn $100k in his life time.

 

[ljean]

A McDonalds value meal is $10??