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Is $150,000 a Lot of Money (You might be surprised…)

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For most people $150,000 dollars a year is a good amount of money and they would be happy to receive it. They might even feel like they have “made it” and celebrate. But, is $150,000 really a lot of money? Not always. Check out when it is and when you might be dreaming for more.

Is $150,000 a Lot of Money

If you’re making way less than this a year, but of course, 150 thousand dollars is a nice chunk of change.

But what can it get you and what can’t it get you?

Let’s find out…

$150,000 Dollars as a Salary 

This is a great salary.

You should be able to afford to buy a nice home and a nice car.

If you have kids, they can get involved in some activities such as sports, ice skating, or even horseback riding.

If you live in an area with a higher cost of living, you will want to be careful.

Your money can slip through your fingers faster than you think.

If you’re trying to live up to the Joneses then you might start having trouble paying all of your bills.

This is especially true if you have a lot of debt such as student loans, credit card debt, or personal loans.

Just don’t get carried away or live up to your income and you should be more than fine.

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$150,000 Dollars as a Gift

A hundred and fifty thousand dollars would be a wonderful gift. 

If you know someone that wants to give you this kind of extra money, you might want to be really nice to them.

Chances are, you might get this as an inheritance or maybe as a wedding gift or even a down payment on a home.

However, most of us will not be on the receiving end of this generous gift.

If you are, use it wisely.

Consider paying off debt or investing it for retirement.

$150,000 Dollars for Retirement

Even though 150 grand is a lot of money, it isn’t going to go very far in retirement.

Sure, if you have this in your retirement accounts, you are doing better than many…many Americans, but it still might not last long enough.

This is especially true if you have serious medical issues.

You can, hopefully, expect to live another 20 years or more after you retire at 65.

Of course, not everyone does, but you should plan for it.

Even adding in social security, you will need more money than $150,000 dollars if you want to retire and be comfortable.

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Things to Buy with $150,000 Dollars

If you want to blow the whole amount at one time, you can buy a lot of things with all of this money.

You might want to:

  • Buy a vacation home
  • Buy a luxury sports car
  • Buy a really nice boat
  • Spend a year, or longer cruising around the world

$150,000 Dollars to Live On

With this much money coming in every year, you should be living comfortably almost anywhere. 

Sure, in a big city on either coast, it isn’t going to go as far as it will in other areas or a smaller town, but you should still be able to cover your living expenses and have enough money to set some of it aside in your retirement accounts and still have some fun.

$150,000 To Have In Your Savings

$150,000 thousand bucks would make a really nice nest egg. 

Especially if you use it as an emergency fund.

Chances are you won’t need to keep all of this money in your emergency fund.

You will want to put some of it into some sort of investment, so your money can truly grow.

Keep enough in an emergency fund to cover unexpected expenses or if you get into an accident or you lose your job, and then use the rest to create true wealth.

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$150,000 Dollars to Invest

While $150,000 dollars on its own won’t be enough to retire on, if you invest it all in one lump sum and let it sit there year after year, you should be in great shape.

For example, if you invest all of it and receive 9 percent interest each year and let it sit there for 30 years, you will end up with just under $2 million dollars.

Boy, your little 150 grand sure has grown.

Leave it in your account for another 5 years and it will continue to increase to just over $3 million dollars.

Now, you can retire and truly enjoy yourself.

What Can’t You Do With $150,000 Dollars?

While this is a good amount of money, there are things that will still be out of your reach.

For example, you can’t:

  • Buy a nice home in California
  • Buy a full-length sable coat
  • Put in an Olympic sized in-ground pool
  • Put your kid through 4 years of school at Harvard

What is $150,000 Per Year an Hour?

Working 40 hours per week, 52 weeks per year, you would be earning $72 dollars per hour.

This is about 10 times the federal minimum wage, so you are doing very well.

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How Much Per Month is $150,000?

If you are working full-time and making this amount of money, you would be bringing in $12,500 dollars before taxes.

That is certainly a nice salary.

Chances are, you work in sales, as an investment banker, or even an engineer. 

Can You Buy a House with $150,000 Dollars?

Depending on where you live and how big a house you want and the neighborhood, you can buy a house for $150,000 dollars.

You might even be able to pay cash for it.

If you live in an area as I do…I live in a rural area in the middle of a cornfield…you can buy a very nice home for this amount.

If you’re aiming for a super nice house, you can use this for a down payment on a $750,000 dollar house.

Heck, we don’t even have a house that expensive in my town.

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To Sum it All Up

For most people, 150K is going to be a lot of money regardless if they get it in one lump sum or if they make it each year. You can buy a nice house, or invest it and be set up very well for your retirement.

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