For most of us, this is quite a bit of money and perhaps more than we will ever see in our lifetime. So when it comes to the question, is $3,000,000 dollars a lot of money, the easy answer is yet. But let’s take a look at what this money will mean for your life.
Is $3,000,000 Dollars a Lot of Money
Unless you live in a super-expensive city like San Francisco this is a lot of money. Even there it is a bunch if you are receiving it on an annual basis.
So, let’s find out what your life will look like with all of this cash.
$3,000,000 Dollars as a Salary
This is a fantastic salary.
If you are making this kind of money then chances are you are a CEO or CFO.
You might own your own successful business.
Either way, you are on top of the food chain and at the top of the 1 percent income earners.
$3,000,000 Dollars as a Gift
If you know someone who can or will give you this kind of gift, then there is a good chance you don’t actually need the money.
Most likely this money came to you in a trust or as an inheritance.
Either way, if you don’t already have a lot of cash, this amount of money will change your life.
$3,000,000 Dollars for Retirement
You can retire on 3 million dollars and you can retire well.
Most experts say you should have between 1 and 2 million dollars to have a comfortable retirement.
So, you’re over that threshold with a nice 1 million dollar cushion.
You should be able to move to Florida or Arizona to enjoy warm winters if that’s your sort of thing.
Or you can stay in your home without having to worry about being able to pay for upkeep.
You could even travel the world.
Things to Buy with $3,000,000 Dollars
There are a lot of things you could do or buy with three million dollars.
Here are a few of them:
- Buy a small plane
- Buy a racehorse
- Buy a good-sized yacht
- Spend a few years traveling in luxury
$3,000,000 Dollars to Live On
With this money, you should be able to live in luxury.
You’ll have a nice home and maybe a couple or more really nice cars.
Your kids can go to private school and take expensive lessons like horse riding.
Travel will be a big part of your life as well.
And shopping will be the norm.
$3,000,000 Dollars to Invest
If you invest all of this money in a lump sum and receive a 10 percent return on your investment yearly, you could live on the interest.
That would give you $300,000 dollars to live on yearly which is still a really nice sum that you can live on easily.
If you want to invest all of this and keep it in an investment account for the next 20 years at 10 percent interest you would end up with a little over $20 million dollars.
At that point, you could easily quit your job and retire early and just enjoy your life.
What Can’t You Do With $3,000,000 Dollars?
Even though this is a great deal of money, it doesn’t mean you can do just anything you want.
For example, you can’t:
- Buy your favorite sports team
- Buy a private jet
- Buy a penthouse apartment on 5th Avenue in NYC
What is $3,000,000 Per Year an Hour?
Chances are if you are making this much money, you’re on salary or getting stock options, but just for fun let’s see how much this would be if you were working a 40 hour week.
You would be making $1,442 dollars per hour, or $11,536 per 8-hour workday.
Now, that’s a nice hourly rate for anyone.
How Much Per Month is $3,000,000?
If you are making $3,000,000 dollars a year, good for you.
You will be bringing home a whopping $250,000 dollars per month.
That’s before taxes, of course, and taxes could take 40 percent of that off the top.
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Can You Buy a House with $3,000,000 Dollars?
You can buy a very nice house with this much money.
Even in expensive areas such as Boston and New York City, you could buy a nice home.
You might be a little surprised by how small the home is even at this price point, but it would still be a nice home.
In the middle of the country in a smaller city, or in a rural area you could get a whole estate and large home for three million dollars.
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To Sum it All Up:
There is no getting around the fact that 3 million dollars is a lot of money. No matter how you cut it, your life would be pretty sweet with this kind of cash. You just don’t want to go overboard if this is a one-time lump sum. You could blow through it like some lottery winners do, and end up broke in a few years and that would be horrible.