Is $800,000 dollars a lot of money? It certainly is. This much money could change your life and at the very least make your life much easier. While it won’t let you retire early or pave the way for a highfalutin lifestyle, it will give you a boost.
Is $800,000 Dollars a Lot of Money
While we can all agree that eight hundred thousand dollars is a lot of money, we might have different opinions on just what we can do with it and how far it will go.
Let’s see how $800,000 dollars stack up in different situations.
$800,000 Dollars as a Salary
This is a fantastic salary. You will be doing quite well if you are making this as an annual income.
Most likely you own your own successful business, are a very successful fund manager, or you are a CEO of a good-sized company.
Whatever you do, you can live quite comfortably.
Your kids will be able to get involved in all sorts of activities as well as go to private schools.
You should be able to travel when you want and where you want.
$800,000 Dollars as a Gift
If someone gave me 800 thousand dollars, I’d get down and kiss their feet.
This kind of cash would certainly change most people’s financial future, to say the least.
Even if you live where the cost of living is high such as one of many coastal cities, like San Francisco, you would still be well off.
So, be sure to thank whoever gave you this money.
$800,000 Dollars for Retirement
There’s no getting around the fact that this is a lot of money, but according to most experts, it still isn’t quite enough to retire on.
They suggest you have one to two million dollars in your retirement savings.
Otherwise, you might need to sell your home and move to a less expensive area.
Even so, you will be better off than a lot of Americans.
Many in the United States find themselves in the position of trying to live on social security alone.
This can be very difficult if not impossible.
With this extra money in your nest egg, you will have some income from it and be able to cover any unexpected expenses such as a health emergency.
You’ll just need to be careful, so you don’t spend it too quickly or you could be in trouble.
And you won’t be able to live your dream retirement with lots of travel.
So, you might have to change your retirement plans and plan on sitting at home.
Things to Buy with $800,000 Dollars
There are many things you can buy with this money.
- A private island
- A Lamborghini
- A houseboat
- A racehorse
$800,000 Dollars to Invest
This is a great lump sum to invest.
If you do, you will be set for your retirement.
You would want to talk to a financial planner to determine where and how to invest your money in things such as the stock market or some other alternative income streams.
But, if you can find an investment where you receive 9 percent interest annually, then in 10 years you would have just under $2 million dollars.
In 20 years it would grow to about $4.5 million dollars.
And in 30 years it would be a whopping $10.6 million.
Now that’s not a bad return on your investment.
What is $800,000 Per Year an Hour?
If you are making this much money then you are certainly on salary and not working only 40 hours a week, but for this example, let’s say you are.
That would mean you are making $384 dollars per hour or $3,072 dollars per day.
That’s pretty nice.
A lot of people don’t even make that in a month.
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How Much Per Month is $800,000?
Your eight hundred thousand dollars a year would translate into $66,666 dollars per month.
That is about the household average for two people in the United States.
Can You Buy a House with $800,000 Dollars?
You can buy a house with this much money and in a lot of places pay cash.
Really the only areas where this might not be enough to buy a really nice, large home would be the big cities on each coast.
Stick to a smaller town or move to the middle of the country and you will be sitting pretty.
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To Sum it All Up:
I’m sure most people wouldn’t turn down eight hundred thousand dollars if someone offered it to them because, yes, it is a lot of money. But that doesn’t mean you are on Easy Street. It is surprising just how fast this much money can fall through your fingers, so be careful. Invest wisely and don’t spend it all in one place.