$30,000/Year, or $3,264/Day. It's All in Your Perspective

My wife needed some motivation. And, I just absolutely love playing with numbers. So, I played a little bit to give her some encouragement at work, and thought I'd share what I found.

She started a new position last November. I can't remember the exact amount she's making (We live in Korea, so she's paid in Korean won), but let's say it's about $30,000 USD for an easy calculation. By this November (one year of working and saving) we will have put away $20,000 for our first investment. With the numbers I've been running, I think we can turn that into a $300/month cashflow. I'm a newbie, perhaps I'm wrong, but I think that's doable.

So, she just celebrated her 29th birthday. Let's say that she lives to be a 99 years old. That will be 70 years of $300/month passive income. That's $252,000 income, with no increases in rent. Divide that back into the work that it took to save the first down payment (260 work days or 2080 hours in 1 year) and that's $969 per day, or $121 per hour! Pretty good considering it's an entry level position.

Now, if we didn't add another dime to the investment (and also didn't spend it), we'd have another $20,000 for another investment in about 5 and a half years, let's say 6 to be conservative, adding another $300/month from age 35. Another 3 years for a 3rd house for a total of $900/month from age 38. A 4th house by age 40, $1,200/month. I mean, this could go on forever, but we're already at $850,000 total future income from age 40 to 99. Let's just stop there divide that $850,000 out again into the work that it took to make the initial investment (1 year of work), and she's making $408/hour today!! Grand total for the day, $3,264. I love the way numbers work.

Add in the fact that she'll continue to work for at least another few years, saving at the same rate we are now. Also, hopefully the properties appreciate a bit over the next 70 years, we'll keep reinvesting, debt pay down, tax advantages, etc, etc...it's a pretty good year! She's been enjoying her work a lot more since we made this realization.

My calculations might be off just a bit, I'm not an expert (yet). But, just trying to make a point for anyone who will take it. Work hard to save now, and you'll reap the benefits later.