When discussing large amounts of money (tens or hundreds of thousands of dollars) you will often hear people refer to how many years' work it is. If somebody makes 30k a year, they would consider a 90k windfall to be worth three years wages. Not bad right?
But it's actually worth much more than that.
Consider the average savings rate in America: Personal savings have averaged 6.85 percent from from 1959 until 2013. So an American earning 30k a year and saving the average would have $2055.00 at the end of the year. At that rate It would actually take them about FIFTEEN YEARS to save 30 grand. So a windfall of that amount would replace the savings effect of HALF of their working life!!
So for most people a penny saved is worth about 15 times a penny earned!
Think about it!
-The Money Monk
No comments:
Post a Comment