How does life change once you hit $1 million?

[Anonymous]

It's imaginary. Doesn't mean literally anything.

My parents taught me well that wealth CAN be erased in the blink of an eye. Bad decisions, not understanding the tax laws, you name it.

My parents should have been multi-millionaires and they just made lots of bad decisions / bad luck.

I've never stopped listening to others, absorbing what they know better than me to attempt to avoid those mistakes. Paying experts to manage my stuff and give me advice.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m single, 41, net worth around $800K including home equity. I’ve always been obsessed with money but, until recently, never as good at making it as some of you here.

I should hit a $1 million net worth in about two years just through savings, or maybe in three years if the market goes down further. I’ve always viewed $1 million as a magical number. Obviously with inflation, the value of that number comes down each year, but it still seems pretty special.

Just curious to hear from all you rich people: how does life change once you get to the promised land? Do you feel a sense of relief and accomplishment? Or is it anti-climactic and just another milestone and you get back to work?

No. Still scared of ending up poor in old age. 1 million is nothing in this day and age.

This. I have $2.5M at 52 and am stressed all the time about running out if I need care.

+2. We have 2M in our mid 40’s and DH wants to tighten our belts even more, and we are already frugal.

Well, you *are* behind the OP. OP said she’ll be at $1 million by 43 and is single. You have $2 million but you’re married so you each really only have $1 million. Assuming mid-40s means 45, you’re slightly behind the OP.

No, disagree that it is linear. Plenty of costs don’t get multiplied by 2, if two people stay in a one bedroom house, utilities etc. Gas if they travel together.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m single, 41, net worth around $800K including home equity. I’ve always been obsessed with money but, until recently, never as good at making it as some of you here.

I should hit a $1 million net worth in about two years just through savings, or maybe in three years if the market goes down further. I’ve always viewed $1 million as a magical number. Obviously with inflation, the value of that number comes down each year, but it still seems pretty special.

Just curious to hear from all you rich people: how does life change once you get to the promised land? Do you feel a sense of relief and accomplishment? Or is it anti-climactic and just another milestone and you get back to work?

No. Still scared of ending up poor in old age. 1 million is nothing in this day and age.

This. I have $2.5M at 52 and am stressed all the time about running out if I need care.

+2. We have 2M in our mid 40’s and DH wants to tighten our belts even more, and we are already frugal.

Well, you *are* behind the OP. OP said she’ll be at $1 million by 43 and is single. You have $2 million but you’re married so you each really only have $1 million. Assuming mid-40s means 45, you’re slightly behind the OP.

No, disagree that it is linear. Plenty of costs don’t get multiplied by 2, if two people stay in a one bedroom house, utilities etc. Gas if they travel together.

It’s not that there aren’t certain economies of scale; there clearly are (e.g., one household instead of two, etc.). The issue is that you have to put up with an inferior state of living in most cases. See the relationship forum for an extensive discussion of this: marriage in the modern world is not beneficial to women unless the husband is a high earner and a 50-50 partner in house work. So you really each have $1 million, but you can create the illusion of having $2 million by accepting a lower standard of living.

It’s not unlike passive income versus active income from a job. Having a job may bring you a higher income than you could obtain from the passive income available from your portfolio, but you’re trading away your life for that higher income. There would be no comparison between someone that has $100,000 per year in passive income versus someone that earns $100,000 per year from working a job.

[Anonymous]

The bar for the promise land rose to 5M when I reached the 1M

[Anonymous]

It's not a magical number - it barely gets you anything nowadays. It's probably easier for you, a single person with no obligations, but for the rest of us - you know the parents on this board, a million dollars is not very much money.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m single, 41, net worth around $800K including home equity. I’ve always been obsessed with money but, until recently, never as good at making it as some of you here.

I should hit a $1 million net worth in about two years just through savings, or maybe in three years if the market goes down further. I’ve always viewed $1 million as a magical number. Obviously with inflation, the value of that number comes down each year, but it still seems pretty special.

Just curious to hear from all you rich people: how does life change once you get to the promised land? Do you feel a sense of relief and accomplishment? Or is it anti-climactic and just another milestone and you get back to work?

No. Still scared of ending up poor in old age. 1 million is nothing in this day and age.

This. I have $2.5M at 52 and am stressed all the time about running out if I need care.

+2. We have 2M in our mid 40’s and DH wants to tighten our belts even more, and we are already frugal.

Well, you *are* behind the OP. OP said she’ll be at $1 million by 43 and is single. You have $2 million but you’re married so you each really only have $1 million. Assuming mid-40s means 45, you’re slightly behind the OP.

No, disagree that it is linear. Plenty of costs don’t get multiplied by 2, if two people stay in a one bedroom house, utilities etc. Gas if they travel together.

It’s not that there aren’t certain economies of scale; there clearly are (e.g., one household instead of two, etc.). The issue is that you have to put up with an inferior state of living in most cases. See the relationship forum for an extensive discussion of this: marriage in the modern world is not beneficial to women unless the husband is a high earner and a 50-50 partner in house work. So you really each have $1 million, but you can create the illusion of having $2 million by accepting a lower standard of living.

It’s not unlike passive income versus active income from a job. Having a job may bring you a higher income than you could obtain from the passive income available from your portfolio, but you’re trading away your life for that higher income. There would be no comparison between someone that has $100,000 per year in passive income versus someone that earns $100,000 per year from working a job.

Interesting take.. never thought about that… may need to hop over relationship forum

[Anonymous]

Anonymous wrote:The bar for the promise land rose to 5M when I reached the 1M

Ha ha .. same here.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m single, 41, net worth around $800K including home equity. I’ve always been obsessed with money but, until recently, never as good at making it as some of you here.

I should hit a $1 million net worth in about two years just through savings, or maybe in three years if the market goes down further. I’ve always viewed $1 million as a magical number. Obviously with inflation, the value of that number comes down each year, but it still seems pretty special.

Just curious to hear from all you rich people: how does life change once you get to the promised land? Do you feel a sense of relief and accomplishment? Or is it anti-climactic and just another milestone and you get back to work?

Sorry to say, but for me it was the latter. But I never was that obsessed with money. It was more like, huh, past that amount. When I was little I thought a millionaire meant someone wearing a monocle and a top hat and having so much money it spilled out of their pants, but in reality it was like just a brief slightly shinier feeling towards a number in the Excel file (not to mention that when the market went down soon after it went below 1m again).

Same here, our lifestyle didn't change, so there was nothing to notice or celebrate. I also don't consider myself "one of the rich people" who have "made it to the promised land." UMC compared to the rest of the nation. MC for the immediate area and this board. Our net worth is the house, retirement accounts, and 529, so while we are certainly doing well compared to the average American, we are not superfluously wealthy. I suspect the PP who said $10m is the new $1m is on target. Maybe $5m if you're older and close to retirement.

My biggest worry that keeps me grinding is that my parents didn't save enough for retirement and don't understand how insanely expensive a good nursing home costs, and that we will foot some part of the costs in the future. And then when it's our turn, I want to make sure we have enough extra money saved that we can cover anything and everything with our own savings so our kids don't have to worry the way I do now.

Most people don't spend too much time in nursing homes--do you have reason to believe your parents will need it? People in my family live very long (several past 100, most mid to upper 90s) and out of all my great aunts, grandparents, great grandparents (maybe 30 elderly people in my life) only 3 needed a nursing home for longer than a month, and only one longer than a year (and under 2).

I do, actually. My father's side of the family has a history of dementia with good physical health, so it drags out for years. One of my coworkers had both of his parents in a facility for dementia at the same time, and the cost was ~$12k a month. I'm using the term "nursing home" loosely - I guess "assisted living" might be more accurate? Either way, it is still incredibly expensive. There was a WaPo article on it last week: https://www.washingtonpost.com/business/2023/03/18/senior-care-costs-too-high/

So one scenario that I have to consider is that if my father ends up in a nursing home that will drain their savings in 2-3 years (with the real possibility of needing to be there 5-6 years), do we spend it all on him, and then when it's my mom's turn there is nothing left? Do I dip into my own retirement and savings to pay for them? Do I leave them to the mercy of medicare and whatever facilities we can find with an empty bed? So not to burst OP's bubble, but $1m net does not make me feel rich or living in the promise land.

OP, it is a very good milestone and without a doubt something to be proud of. It's more than most Americans will ever have. I'm sorry so many people on this forum (myself included) and being debbie downers, but we are answering your initial question honestly.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I’m single, 41, net worth around $800K including home equity. I’ve always been obsessed with money but, until recently, never as good at making it as some of you here.

I should hit a $1 million net worth in about two years just through savings, or maybe in three years if the market goes down further. I’ve always viewed $1 million as a magical number. Obviously with inflation, the value of that number comes down each year, but it still seems pretty special.

Just curious to hear from all you rich people: how does life change once you get to the promised land? Do you feel a sense of relief and accomplishment? Or is it anti-climactic and just another milestone and you get back to work?

No. Still scared of ending up poor in old age. 1 million is nothing in this day and age.

This. I have $2.5M at 52 and am stressed all the time about running out if I need care.

+2. We have 2M in our mid 40’s and DH wants to tighten our belts even more, and we are already frugal.

Well, you *are* behind the OP. OP said she’ll be at $1 million by 43 and is single. You have $2 million but you’re married so you each really only have $1 million. Assuming mid-40s means 45, you’re slightly behind the OP.

No, disagree that it is linear. Plenty of costs don’t get multiplied by 2, if two people stay in a one bedroom house, utilities etc. Gas if they travel together.

It’s not that there aren’t certain economies of scale; there clearly are (e.g., one household instead of two, etc.). The issue is that you have to put up with an inferior state of living in most cases. See the relationship forum for an extensive discussion of this: marriage in the modern world is not beneficial to women unless the husband is a high earner and a 50-50 partner in house work. So you really each have $1 million, but you can create the illusion of having $2 million by accepting a lower standard of living.

It’s not unlike passive income versus active income from a job. Having a job may bring you a higher income than you could obtain from the passive income available from your portfolio, but you’re trading away your life for that higher income. There would be no comparison between someone that has $100,000 per year in passive income versus someone that earns $100,000 per year from working a job.

Every so often this forum reminds me just how provincial DCUMers really are.

-- Woman married to a woman living in the 21st century.

[Anonymous]

Anonymous wrote:I felt accomplishment. I also felt a sense of security b/c as someone who was at one time poor, I know how to live on 40K and one million can theoretically provide that much income. Also, for as long as you waited to see a million, you will be so gratified to see that second one come faster.

or even the third…

[Anonymous]

Anonymous wrote:

Anonymous wrote:It makes you realize how much less that is than it used to be.

In a nutshell. Nursing homes are 10K a month right now.

That is actually low.

[Anonymous]

Thought you meant $1m HHI. Answer: nothing will change. Keep saving.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:It makes you realize how much less that is than it used to be.

In a nutshell. Nursing homes are 10K a month right now.

That is actually low.

You can get a decent, but not luxury place for this.

[Anonymous]

$1m net worth didn't change my life. Didn't even noticed it. Had the same problems. $1m HHI would change how I live now and how I envision the future.

[Anonymous]

Changed nothing.