Is 90K a Lot of Money – It Can Be

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For most people, ninety thousand dollars is a lot of money no matter how you look at it. Even so, is 90K a lot of money, truly? You might be surprised what you can and can’t do with all this cash. Read on to find out what kind of life you can have on 90K.

Is 90K a Lot of Money

For many people, I included, $90,000 is a lot of money.

You can do a lot with this amount of cash, but there are a few things you can’t do as well.

Here’s how 90 grand adds up in different situations.

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$90,000 Dollars as a Salary

Ninety thousand dollars is a great annual income. 

It is well above the median income of $35,000 dollar a year for an individual.

It is also above the average median household income that is considered necessary to live comfortably in most areas.

Even in a city with a high cost of living, you should be able to live well if you are careful.

$90,000 Dollars as a Gift

If someone is giving you $90,000 dollars as a gift, they must really like you.

This could be an inheritance or money to pay for college or even a super fancy wedding.

No matter how you use this money or the reason someone gave it to you, it is a disposable income that will make a real difference in your life.

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$90,000 Dollars for Retirement

While this is a good deal of money, it isn’t enough for retirement.

If you think about it, chances are you will live at least another 20 to 25 years after you retire.

These $ 90,000 dollars will only give you an additional $4,500 dollars per year on top of social security.

That works out to an additional $375 dollars per month.

This increase in income will help, but it won’t provide you with a comfortable or exciting retirement.

If you want to be able to travel and enjoy your retirement you will need a lot more monthly income than this will provide you.

Things to Buy with $90,000 Dollars

You can buy a lot of things with this amount of money.

For example:

  • A BMW
  • A small vacation home off the beaten path
  • A nice boat
  • A luxury trip around the world
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$90,000 Dollars to Live On

You should be able to live well on this month in most places in the United States.

At this income level, you should be able to cover your monthly payments and housing costs.

Even if you have a student loan you will be able to pay it off quickly.

Chances are you will have a nice house and car and money in savings.

$90,000 To Have In Your Savings

If you have 90 thousand dollars to stick into your savings account, then you are in good shape.

This is much more than you need for an emergency fund.

A lot of this money should go into some sort of investment such as real estate investments, or the stock market so you can build your wealth.

$90,000 Dollars to Invest

This is a great amount to invest.

You’ll want to talk to a financial advisor to determine the best investment for your personal situation.

But, just as an example, if you invest all of this at once and receive 9 percent interest, in 30 years you will have about $1.2 million dollars.

Now that’s real growth.

What Can’t You Do With $90,000 Dollars?

Even though this is a lot of money there are things you can’t do with it.

  • Pay for 4 years of college at an Ivy League school
  • Buy a house in an expensive city such as San Francisco or Washington DC
  • Run a political campaign
  • Buy a private island with running water and electricity

What is $90,000 Per Year an Hour?

If you are working a 40 hour week, then you would be making $42.27 per hour.

Keep in mind that most people making this kind of money each year work much more than 40 hours a week.

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How Much Per Month is $90,000

Ninety thousand a year will provide you with $7,500 dollars per month.

You’re getting really close to that golden $10,000 per month.

You should be living really well.

Can You Buy a House with $90,000 Dollars

Yes, you can buy a house for $90,000 dollars.

In the middle of the country, you could even pay cash for a house. It will be a pretty nice place as well.

On the coasts, you might not be able to get a whole house for this amount of money, but it is a nice down payment on a $450,000 dollar home.

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To Sum it All Up:

Ninety thousand dollars is a good deal of money. You can live comfortably on it almost anywhere in the United States. You can’t retire on it, but if you just have this extra cash sitting around, you can invest it and make a lot of money, or spend it on something really fun like a boat.

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