Say, first month you spend all that money on stuff you’ve ever wanted. New car, new flat/house (mortgage will be super easy with $300k a month guaranteed income), etc.
Second month, you already have everything you immediately needed, and money left over, so you put all your daily income into investment accounts.
That is $3.3mil by the end of the year, not including interest - which would be around $69k (nice) given the much higher interest rates you get for high value accounts.
Mind you at this point the banks you use also change from regular high street names to banks catering for the actually rich. At a 3mil increase in net worth in a single year, you are now member of this club. You get a personal account handler, and much like the casinos in Vegas, the bank will keep throwing free shit your way just to keep you on as a customer.
That 69k interest is now spent on your mortgage and daily expenditure, so at the end of the year your account does stand at 3.3mil.
Another year goes by, and your interest increases by FIVE TIMES, to $320k, and your account now holds just shy of 7 million.
Let’s say you get on with the rich life and spend a million, for a new, fancy flat, and a supercar, and some new clothes. Still, you’re at 6 million.
Year 3? Your base is up to 10 million, plus 760k interest!
Year 5? Interest at 2.4mil, base at 18mil.
Year 10? Total interest at 10 million, base at 36 million.
Year 14? At this point, the interest you earn in a year is actually more than what you contribute, just a smidge over 3.4mil.
Year 20? 122 mil in your account, 72 of that you contributed, 50 is interest.
Year 30, and you’re hitting 250mil, with “only” 108mil of that being your contribution.
Year 40? almost at half a billion!
Year 50 and you’re reaching 750mil.
Year 55? You hit the billionaire landmark, with $1.008bn in your account.
Year 60? 1.3bn.
And mind you this is with a fixed interest rate account of 5%. In reality your investment vehicles would be anywhere between 20 to 40-50% a year, which could put you on the billionaire list in as little as ~15 years.
Reality is, the moment one can break out of the paycheck-to-paycheck living, and start saving up, without the hindrance of a sudden emergency spending, it’s not that hard to get enough money to consider yourself rich. Problem is, breakin out of that cycle is being made extremely hard by those who’ve realised this loophole and don’t want mere peasants like us in their fancy circles.
Even then, you wouldn’t catch up because the billionaires would be doing the same thing, and probably be trillionaires by the time you make your first billion.
Technically you could catch up.
Say, first month you spend all that money on stuff you’ve ever wanted. New car, new flat/house (mortgage will be super easy with $300k a month guaranteed income), etc.
Second month, you already have everything you immediately needed, and money left over, so you put all your daily income into investment accounts.
That is $3.3mil by the end of the year, not including interest - which would be around $69k (nice) given the much higher interest rates you get for high value accounts.
Mind you at this point the banks you use also change from regular high street names to banks catering for the actually rich. At a 3mil increase in net worth in a single year, you are now member of this club. You get a personal account handler, and much like the casinos in Vegas, the bank will keep throwing free shit your way just to keep you on as a customer.
That 69k interest is now spent on your mortgage and daily expenditure, so at the end of the year your account does stand at 3.3mil.
Another year goes by, and your interest increases by FIVE TIMES, to $320k, and your account now holds just shy of 7 million.
Let’s say you get on with the rich life and spend a million, for a new, fancy flat, and a supercar, and some new clothes. Still, you’re at 6 million.
Year 3? Your base is up to 10 million, plus 760k interest!
Year 5? Interest at 2.4mil, base at 18mil.
Year 10? Total interest at 10 million, base at 36 million.
Year 14? At this point, the interest you earn in a year is actually more than what you contribute, just a smidge over 3.4mil.
Year 20? 122 mil in your account, 72 of that you contributed, 50 is interest.
Year 30, and you’re hitting 250mil, with “only” 108mil of that being your contribution.
Year 40? almost at half a billion!
Year 50 and you’re reaching 750mil.
Year 55? You hit the billionaire landmark, with $1.008bn in your account.
Year 60? 1.3bn.
And mind you this is with a fixed interest rate account of 5%. In reality your investment vehicles would be anywhere between 20 to 40-50% a year, which could put you on the billionaire list in as little as ~15 years.
Reality is, the moment one can break out of the paycheck-to-paycheck living, and start saving up, without the hindrance of a sudden emergency spending, it’s not that hard to get enough money to consider yourself rich. Problem is, breakin out of that cycle is being made extremely hard by those who’ve realised this loophole and don’t want mere peasants like us in their fancy circles.
Even then, you wouldn’t catch up because the billionaires would be doing the same thing, and probably be trillionaires by the time you make your first billion.