posted
Hey guys. I'm a college student, and I'm curious.
How much money is enough? I mean, how much money would a person need to make from the market to be able to live off of it without really working?
I ask this not because I really plan on doing so myself, but it's just something I find interesting to look into.
Let's say I *somehow* make a profit of a million dollars (after taxes) off of the stock market by the time I graduate.. Assuming a decently comfortable living with a $50,000 car, and a $500,000 home, how long would my money last before I'd have to find some more income?
Thanks for helping my curiousity.
-------------------- Hindsight is 20:1. It's like printing money. Posts: 1129 | From: Univ of Fl | Registered: Jan 2006
| IP: Logged |
posted
So you are talking about cashing out and sitting on your ass doing nothing? Why would you do that if you are going to college? What would the point be in going to college if you just want to sit around?
If you feel you are going to be so successfull as to make a million bucks, why not daytrade?
-------------------- Well done is better than well said. Ben Franklin Posts: 718 | From: Bay Area, CA | Registered: Aug 2005
| IP: Logged |
The main reason why I came to college was because it's free for me (gotta love Florida education system for spoiling me so).. As an aside, I want to own my own business. I figured college wouldn't specifically help me with that goal, but since I could move somewhere else and go to school and live virtually free for 4 years, I decided to not pass up that offer.
The reason I ask about how much I'd need in order to not have to do anything else would be so that I know my target point to get to before jumping in and owning my own business.
For clarification sake, the business I would like to own is a pool hall. I would take money that I *hopefully* earn from trading, and invest it in that, and then that would be what I would do for a living. I'd just wanna have a big enough financial padding behind me so as to not have to immediately worry about living expenses and all that while still setting up my business.
And I'd continue to trade as well, once I'm doing my own business.
But it'd just be neat to know that, if I made a million dollars, that the rest of my life would be financially risk-free, if I could just live off that money and then have anything else I make in life be a bonus.
And this is all just hypothetical, anyways. I don't anticipate that I will make a million bucks off of trading over the next few years. Nor do I really think that I will be able to make it through the rest of my life solely off trading.
I just wanted to get a perspective of how much 'living' costs. For now, as a college student, all I pay is rent in my apartment (400/month) and food (50 per week or two) and gas for my car(30/month). And I anticipate that living as an adult, with a house and all the rest of that, has a lot more expenses involved, so I wanted to know the range of which I would expect living costs to be for my future, so I could try to plan my finances now accordingly.
So it's more of curiosity, really. Not a plan.
-------------------- Hindsight is 20:1. It's like printing money. Posts: 1129 | From: Univ of Fl | Registered: Jan 2006
| IP: Logged |
posted
$30 a month for gas? ... chit i need to move to florida.. lol i pay like $250 a month for gas.. $400 for rent? ... chit i pay like $1,200 a month lol ..
-------------------- Let the world change you... And you can change the world.
Ernesto "Che" Guevara de la Serna Posts: 4669 | Registered: Mar 2004
| IP: Logged |
quote:Originally posted by Machiavelli: $30 a month for gas? ... chit i need to move to florida.. lol i pay like $250 a month for gas.. $400 for rent? ... chit i pay like $1,200 a month lol ..
lol. keep in mind.. I'm a college student, and live less than a mile away from campus, and take the bus most of the time. And I rarely go out. And Gainesville isn't a big town, so there's never anything very far to get to. And I drive a Saturn. Gas is still like $2.81 around here.
Also, for rent, I live in a small apartment, and share it with 2 other roommates, in not-the-most-prestigious area of town, if you know what i mean.
I'm living as low-budget as I can now, so that I can save up as much as I can, and put as much towards this stock market thing as I can afford. And the cheaper I can get away with living, the more I can risk in this game.
-------------------- Hindsight is 20:1. It's like printing money. Posts: 1129 | From: Univ of Fl | Registered: Jan 2006
| IP: Logged |
posted
well, you can try some new figures. (avg sample figures) 50k car is 300/mo, car insurance 50/mo 500k house is 2000/mo, home owners insurance 75/mo, garbage,gas/electric,phone,cable 200/mo total. property taxes 400/mo. so your total in the real world with your house and car is about 3k per month. not including food or entertainment.
Posts: 1045 | From: novato,ca,usa | Registered: Aug 2003
| IP: Logged |
quote:Originally posted by metal1: well, you can try some new figures. (avg sample figures) 50k car is 300/mo, car insurance 50/mo 500k house is 2000/mo, home owners insurance 75/mo, garbage,gas/electric,phone,cable 200/mo total. property taxes 400/mo. so your total in the real world with your house and car is about 3k per month. not including food or entertainment.
Thanks for the calcs, metal. Now I got my goal to set. Find a way to make 3k/month, plus an extra 3k each month for savings and misc expenses..
Hooray for stocks.
-------------------- Hindsight is 20:1. It's like printing money. Posts: 1129 | From: Univ of Fl | Registered: Jan 2006
| IP: Logged |
posted
Edgewise, The calc that Metal just gave you...they are not even close...hell my gas bill for heating my house is more than $200 a month...and he lumped the utilities and what not together...Much is going to depend on where you are planning on living...my home here in Ohio...$250,000...my brother lives in Florida...he says my house and property down there would be $600,000 easy...just to "run your home" and pay for the up keep and repairs with utilities...you should budget in more like about $4500/ month(depending on where you are located)...the car...Just bought my son a used car...2003 and the payments are $200/month for 4 years...and it only cost $9500.00..not 50k When you are doing your calc...let's not forget about the fact there could be a chance that you get injured or sick...what about health insurance? Paying on your own is probably $300-500/ month...if you don't have the health insurance...well one 2 day stay at the hospital is going to run you $20,000-50,000 depending on the care and need...and then you'll need to figure in the cost increases of living...hell...just 3 years ago gas was only what $1.50?...3 -4 years ago a gallon of Milk was only $1.80..it's now $2.89...what about if you ad a family in "your life time"? Honestly $1 million...won't get you far for very long... Be wise...you're on the right track...but what looks good on paper...doesn't always work out...be careful...
-------------------- #1 Rule: Protect your capital! #2 Rule: Never fall for the BS on the boards! Posts: 8890 | Registered: Jan 2006
| IP: Logged |
posted
50K trading forex or even Pennystocks may result in huge profit for someone with the capital you have. You may want to get int touch with a professional who can what you please. Not what he wants! In forex one right play can make you 25k easy! No paritals.Automatic excuation.
Posts: 26 | Registered: Apr 2006
| IP: Logged |
posted
like i said. those are sample figures. i don't think he's planning his whole life based on our responses.
Posts: 1045 | From: novato,ca,usa | Registered: Aug 2003
| IP: Logged |
posted
with the way things are going?... you can double all those figures within ten years ...and also depends on what your addictions will be... coke and meth heads can blow alot of dough really quick,so ya gotta figure that in. women will bleed ya dry too.Kids?? they aint cheap..as you well know. Gonna have to get some toys(boats,cars,cycles,etc..)...a million bucks wont last long... after all that...you're gonna need a drink or two,or three...Good Luck kid
-------------------- jordan Posts: 5812 | From: st paul,mn | Registered: Feb 2004
| IP: Logged |
Thanks, everyone. Guess it looks like I'll be continuing to live in cheap apartments for awhile. And I'll be keeping up with the single life. I can get by pretty cheap as it is, and just keep funnelling any extra money I do get right into the market.
With fixed expenses totalling less than $500 or so per month, life is good. Maybe I will end up having to get a job afterall. Or at least, do some sort of work..
Thanks again, everyone. Very interesting to hear all the input.
-------------------- Hindsight is 20:1. It's like printing money. Posts: 1129 | From: Univ of Fl | Registered: Jan 2006
| IP: Logged |
UBBFriend: Email this page to someone!
Printer-friendly view of this topic
![[Wink]](wink.gif)
