cktc
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Post by cktc on Jul 31, 2019 14:42:12 GMT -5
DH's old boss is trying to talk him into going for his old job. Said it would be "life changing money". DH scoffed at it, but it'd likely be an extra $30k in annual take home. While we are pretty comfortable now, that would certainly change things vs. annual raises and smaller pay bumps that are quickly reallocated.
Is there an amount of money that would change how you live your life? If so, how much, and what would you do with it?
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billisonboard
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Post by billisonboard on Jul 31, 2019 14:54:02 GMT -5
Anything short of +/- $250,000 cash in my pocket would not seriously alter how I live my life.
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Deleted
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Post by Deleted on Jul 31, 2019 15:01:21 GMT -5
$114,017 cash would be life altering for me.
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hoops902
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Post by hoops902 on Jul 31, 2019 15:02:58 GMT -5
At this point in my life...5-10 million as a one-time payment (because at that point I would seriously consider just retiring which is pretty life-changing, anything less and I would simply put it towards retirement which wouldn't change anything in my current life most likely). Annually, I'd need an extra $200k/year to make my actual lifestyle change much (again, because I'd likely just save most increases for little/no actual current change). I'm probably at that point on the curve where the experts say your enjoyment will increase up to "here" and then not as much...I buy what I want, when I want for the most part. I just naturally have very simple tastes.
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azucena
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Post by azucena on Jul 31, 2019 15:05:29 GMT -5
DH's old boss is trying to talk him into going for his old job. Said it would be "life changing money". DH scoffed at it, but it'd likely be an extra $30k in annual take home. While we are pretty comfortable now, that would certainly change things vs. annual raises and smaller pay bumps that are quickly reallocated. Is there an amount of money that would change how you live your life? If so, how much, and what would you do with it? I've had this type of raise once. Not to nitpick words, but I'd call it life shifting especially if it's not frittered away and is instead consciously and consistently used to meet goals like maxing retirement. It's not enough to be life changing in the short term, but could be long term if used wisely. I've used mine to move to a nicer house, take nicer vacations, max retirement (done), beef up savings (done). That led to my thread a month or so ago about figuring out my next goals.
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souldoubt
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Post by souldoubt on Jul 31, 2019 15:07:17 GMT -5
At first I was going with Bill's number but after seeing hoops' I'm going with at least 1 million in my bank. I'd use 15-20% of that as a down payment on a house, sell our current place while banking the proceeds, pay off my car so the only debt is the mortgage, leave at least 25K in savings/money market then invest the rest. That would allow me to help my mom as needed as she was pushed into retirement and get me a lot closer to my "walk away if I want" point in life where I can retire or quit when I'm over it.
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Deleted
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Post by Deleted on Jul 31, 2019 15:14:10 GMT -5
$114,017 cash would be life altering for me. That's pretty specific. You have obviously been contemplating this question for awhile.
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cktc
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Post by cktc on Jul 31, 2019 15:15:16 GMT -5
$114,017 cash would be life altering for me. That's pretty specific. You have obviously been contemplating this question for awhile. Mortgage balance?
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billisonboard
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Post by billisonboard on Jul 31, 2019 15:15:44 GMT -5
At first I was going with Bill's number but after seeing hoops' I'm going with at least 1 million in my bank. I'd use 15-20% of that as a down payment on a house, sell our current place while banking the proceeds, pay off my car so the only debt is the mortgage, leave at least 25K in savings/money market then invest the rest. That would allow me to help my mom as needed as she was pushed into retirement and get me a lot closer to my "walk away if I want" point in life where I can retire or quit when I'm over it. At 62, my number would get me to the position I could retire now instead of waiting a few more years to be more comfortable with no paycheck. It was only a few years ago that I was closer to hoops902's number.
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billisonboard
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Post by billisonboard on Jul 31, 2019 15:16:39 GMT -5
That's pretty specific. You have obviously been contemplating this question for awhile. Mortgage balance? That was my guess!
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Cookies Galore
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Post by Cookies Galore on Jul 31, 2019 15:19:03 GMT -5
An additional $30k a year would not exactly be life-changing so much as life-enhancing or habit-forming. Because I'd buy all the pretty things and go away more. And save more, duh.
Life would be easier for sure, but would it really change if I'm still working? Well, it would probably allow me to save more thus retire sooner, so I guess I answered my own question.
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cottontail
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Post by cottontail on Jul 31, 2019 15:21:41 GMT -5
I'm always curious about what "life changing" is supposed to mean.
One million would be enough for me to sell my current place and make a big move. I might move to the city nearest me and get a condo with a view of the lake. That would be pretty life-changing for me but it's not like it's enough money for my husband to retire.
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weltschmerz
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Post by weltschmerz on Jul 31, 2019 15:22:53 GMT -5
DH's old boss is trying to talk him into going for his old job. Said it would be "life changing money". DH scoffed at it, but it'd likely be an extra $30k in annual take home. While we are pretty comfortable now, that would certainly change things vs. annual raises and smaller pay bumps that are quickly reallocated. Is there an amount of money that would change how you live your life? If so, how much, and what would you do with it? My life wouldn't change drastically with an extra $30K. I'd live in the same place, and do the same things. Well, except pay $200-$300 for concerts at Place des Arts. I go to a lot of concerts, but can't afford the PdA shows. Otherwise, my wants and needs are few. Maybe buy a new laptop. This one is so old that all the numbers and letters have worn away and I need an external mouse. But, it still works fine, and I hate throwing things out that still work.
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NoNamePerson
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Post by NoNamePerson on Jul 31, 2019 15:31:27 GMT -5
$3.82
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movingforward
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Post by movingforward on Jul 31, 2019 15:38:31 GMT -5
DH's old boss is trying to talk him into going for his old job. Said it would be "life changing money". DH scoffed at it, but it'd likely be an extra $30k in annual take home. While we are pretty comfortable now, that would certainly change things vs. annual raises and smaller pay bumps that are quickly reallocated. Is there an amount of money that would change how you live your life? If so, how much, and what would you do with it? I've had this type of raise once. Not to nitpick words, but I'd call it life shifting especially if it's not frittered away and is instead consciously and consistently used to meet goals like maxing retirement. It's not enough to be life changing in the short term, but could be long term if used wisely. I've used mine to move to a nicer house, take nicer vacations, max retirement (done), beef up savings (done). That led to my thread a month or so ago about figuring out my next goals. My pay has increased by 30K in the last 2 years, and will likely increase by another 25K next year. It isn't what I would call life changing money but it has definitely shifted things a bit. I bought a nice condo, don't worry as much about what I spend on vacations, buy a little better quality clothing, etc. The biggest shift is that I might reach financial independence faster than anticipated. Five years ago I didn't think that would happen before age 65, and now it could happen by my mid 50's.
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cktc
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Post by cktc on Jul 31, 2019 15:38:34 GMT -5
I'm always curious about what "life changing" is supposed to mean. One million would be enough for me to sell my current place and make a big move. I might move to the city nearest me and get a condo with a view of the lake. That would be pretty life-changing for me but it's not like it's enough money for my husband to retire. For me I guess "life changing" would be that push from middle class to upper middle class. Just having all our retirement and savings accounts fully funded and having more disposable income to comfortably spend. We could hire a landscaper and regular sitter, and take more vacations without hand wringing and rebalancing things to make it work. Basically it would just change my relationship with money and spending a bit, not really my whole life because there isn't much I would change, but it would definitely make things easier. DH is pretty content with the status quo, and doesn't really have things he'd want to change.
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Tiny
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Post by Tiny on Jul 31, 2019 15:42:27 GMT -5
At this point in my financial life "life changing" means achieving Financial Independence. A lump sum of 500K or more delivered tomorrow - and I could quit my job without hesitation the day after that. That would be life changing. If the lump sum was 5 million or more - definitely life changing for me and it might become "life shifting' for some of my relatives as I started a 10 year plan of gifting them yearly fixed amounts of money to go into "retirement accounts' and/or to be put towards their student loans (their current life stays the same - but their future gets brighter). My relatives are all "young enough' to benefit from some help with these long term things. A lump sum of 250K delivered tomorrow - wouldn't change my immediate plans but it would make me much more happy and relaxed and able to better enjoy the time I do spend at work... as it would pretty much guarantee a FIre date in 2 years versus 4 or 5 years). Any amount that was doled out via a "paycheck" over the course of years wouldn't change my immediate plans or my long term plans - as I'd still have to go to work to achieve my goals. As per the OP, a 30K increase in pay (or as a bonus) would be nice (probably 20 to 25K after taxes ?) wouldn't be life changing. I'd still have to go to work for the next 4 years. After 2 years - it might cause me to 're-evaluate' my long term plans but probably not.
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tallguy
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Post by tallguy on Jul 31, 2019 15:51:30 GMT -5
This is a timely question, not because of any new money but because of my situation. In fact, I've told people just in the last month that my life would not be made appreciably better if I won the lottery. I retired in 2017 and needed to live off of savings for well over a year before I could access IRA money. I am still struggling with the transition from a saver mentality to the idea that spending money is okay. I am trying to convince myself that this is the time that all of my efforts were geared toward. This is what my accounts are for. My guess is that it will continue to be difficult until I start to receive Social Security. At that point it will be money that I did not directly have to work for and earn, so will be far easier to let go of. I have more than enough money now barring disaster, but that is because I already have more things than I need (so my future "needs" will never be high) and my tastes are pretty simple.
Life-changing for me would be around a $500,000 lump-sum payment. My daily life still would not change much because I live the life I want anyway, but I would do more extravagant travel, including first-class air fares. I would also hire out jobs redoing the house and yard all at once rather than doing them myself over time. Then, I would indulge my GF's restaurant tastes more, and buy a new car. Might even rethink buying a small RV, which I pretty much dismissed last year.
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Post by Deleted on Jul 31, 2019 15:53:31 GMT -5
Not really. I'm already retired and I like my life. It doesn't need changing! My guess is that unless my 88-year old widowed Dad needs Alzheimer's care (and he shows no signs of it), he'll leave about $500K and it will be split among my 4 siblings and me. I've already decided, and he knows it, that it will go straight into the 529 accounts for my 3 grandchildren although I MIGHT skim off some ($15K or less) for a dream trip.
I guess that's why I don't buy lottery tickets, either.
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Deleted
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Post by Deleted on Jul 31, 2019 15:59:20 GMT -5
3.9 million.
I’m addition to what I have already this would give me enough to live on dividends and interest at the level I want. I probably wouldn’t retire but would have enough if let go.
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Deleted
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Post by Deleted on Jul 31, 2019 16:07:25 GMT -5
That's pretty specific. You have obviously been contemplating this question for awhile. Mortgage balance? That's the mortgage balance plus $7500 to cover the well for good measure. It would be life changing to me to not have 100% of my take home going to the mortgage (job take home).
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happyhoix
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Post by happyhoix on Jul 31, 2019 18:53:42 GMT -5
Humm. We've got nothing but a car note, pretty nice nest egg, don't want a bigger house, fancier car or boat.
I always envied people with enough money they could fund an endowment, however, and direct where the money would go. Like Bill and Melinda Gates, buying mosquito nets for everyone in Africa to fight malaria, trying to make smallpox extinct. Practical ways to help a lot of people. So if someone could give me a couple hundred million, I'd have a great time researching the best research/programs to fund. That would be life changing.
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haapai
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Post by haapai on Jul 31, 2019 19:09:53 GMT -5
Yes, there are amounts, both lump sums after taxes and increases in gross, after-tax, and discretionary incomes, adjusted for risk, that would cause me to change my life dramatically.
I'm not in the habit of buying lottery tickets or dreaming of inheritances or large raises, so I haven't spent a whole lot of time calculating them. I suspect that if I did, the results would appall you. The numbers would probably strike you as quite small both in absolute terms and as multiples of current gross, after-tax, and discretionary income. Like most people, I have a price. Like most people, the price is quite low.
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jelloshots4all
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Post by jelloshots4all on Jul 31, 2019 19:34:44 GMT -5
$30K would not be life changing to me. I almost took that as a pay cut this year. It would have hurt, but we could survive. I know I am blessed. I also know my savings and investments.
Give me $500M, yeah my life would change! I would buy a house that has at least 2 bathrooms!! 2 teenagers!!
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cktc
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Post by cktc on Jul 31, 2019 19:38:23 GMT -5
$30K would not be life changing to me. I almost took that as a pay cut this year. It would have hurt, but we could survive. I know I am blessed. I also know my savings and investments. Give me $500M, yeah my life would change! I would buy a house that has at least 2 bathrooms!! 2 teenagers!! What sort of COLA are you living that your need $500M for a house with 2 bathrooms?!
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tallguy
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Post by tallguy on Jul 31, 2019 21:46:01 GMT -5
Some people still use M to represent "thousand." Yes, they mess up the rest of us. It's based on Roman numerals, but it makes no sense to use it in the modern age with such higher numbers as are common today. They really should stop! Unless...she really does need $500 million, and the house is just the first step....
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haapai
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Post by haapai on Jul 31, 2019 22:14:56 GMT -5
FWIW, I once received a no-strings gift of approximately 20% of my annual gross income, an unknown amount of my annual after-tax income, and at least 200% of my annual discretionary income. It was life-changing because I had a plan. I immediately used it to extinguish debt that would have taken me two or three years to kill off, had everything gone exactly according to plan and had my calculations been accurate. (I've got my doubts as to how accurate my estimates of what I could save annually were. My three-cylinder aluminum car was wheezing and leaking gas pretty badly by that point and I just did not have the mental strength to even contemplate replacing it.)
That gift changed my life.
In other words, I don't think that comparing windfalls or income bumps to annual gross income is helpful in determining how life-changing an amount is. Comparing those amounts to annual discretionary income or net worth might yield more meaningful results.
As you might surmise, my net worth was negative at the time that I received this gift, so the gift that I received was pretty much an infinite multiple of net worth.
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cronewitch
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Post by cronewitch on Jul 31, 2019 23:32:21 GMT -5
My financial life is not going to change with more money. I have more than I can spend and am giving away excess to make life changing amounts for others.
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Cookies Galore
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Post by Cookies Galore on Aug 1, 2019 6:23:29 GMT -5
FWIW, I once received a no-strings gift of approximately 20% of my annual gross income, an unknown amount of my annual after-tax income, and at least 200% of my annual discretionary income. It was life-changing because I had a plan. I immediately used it to extinguish debt that would have taken me two or three years to kill off, had everything gone exactly according to plan and had my calculations been accurate. (I've got my doubts as to how accurate my estimates of what I could save annually were. My three-cylinder aluminum car was wheezing and leaking gas pretty badly by that point and I just did not have the mental strength to even contemplate replacing it.)
That gift changed my life.
In other words, I don't think that comparing windfalls or income bumps to annual gross income is helpful in determining how life-changing an amount is. Comparing those amounts to annual discretionary income or net worth might yield more meaningful results.
As you might surmise, my net worth was negative at the time that I received this gift, so the gift that I received was pretty much an infinite multiple of net worth.
You know... that's true. My promotion four years ago ended up being somewhat life changing. The raise was "only" a 15% increase but it enabled me to sock away enough money that my husband and I were able to seriously start looking for a house only four months later. If I didn't get that promotion who knows how much longer it would have taken us to save enough for me to be comfortable enough to start searching. We certainly wouldn't be in our house. Would we have ended up in the same town? Made the same friends? Would I be as involved in the community as I am? Who knows.
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Lizard Queen
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Post by Lizard Queen on Aug 1, 2019 7:25:04 GMT -5
You know, I guess that much more income would be in a way. If my DH earned that much more, I wouldn't worry too much about working myself, saving all the daycare costs. Otherwise, life-changing lump sum would take much more.
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