Point is people often just view money from what can you buy outright to decide if something is a lot of money, but even wealthy people don’t always choose to buy property outright choosing to go with mortgages. They prefer to invest in other things instead of tying up all their money in one lump sum to one real estate property might be one reason.
When you calculate how many years or decades and what age you’d be to have accrued that much money it really sinks in how much money that really is. And how much money you need to be at a stage where you have a livable indefinite flow of money coming in, which is a huge milestone in life.
Like 100k at a glance might not be impressive, but then when you stop and realize that 100k is just coming in every year without reliance on a job and how much uncertainty there can be in the job market you realize how life changing it actually is. And how much wealth it is. People kind of lose sight despite not having that much money because they keep comparing things to the most extravagant displays of wealth.
So sure you might not be able to buy property outright, but you can take out mortage and not work and still have more secure state of finances than someone who is making 100k working and can be let go at any time and doesn’t have even a million in savings to fall back on.
Point is people often just view money from what can you buy outright to decide if something is a lot of money, but even wealthy people don’t always choose to buy property outright choosing to go with mortgages. They prefer to invest in other things instead of tying up all their money in one lump sum to one real estate property might be one reason.
When you calculate how many years or decades and what age you’d be to have accrued that much money it really sinks in how much money that really is. And how much money you need to be at a stage where you have a livable indefinite flow of money coming in, which is a huge milestone in life.
Like 100k at a glance might not be impressive, but then when you stop and realize that 100k is just coming in every year without reliance on a job and how much uncertainty there can be in the job market you realize how life changing it actually is. And how much wealth it is. People kind of lose sight despite not having that much money because they keep comparing things to the most extravagant displays of wealth.
So sure you might not be able to buy property outright, but you can take out mortage and not work and still have more secure state of finances than someone who is making 100k working and can be let go at any time and doesn’t have even a million in savings to fall back on.