If you went to the car show and bought a 1965 Mustang in mint condition for $25,000 and the annual inflation rate was 8 percent, when would your investment double? If you bought a 1965 Mustang for $25,000 with an annual inflation rate of 8 percent, it would take around 9 years for the car’s worth to double based on the Rule of 72.ĭ.There is no clear definition of middle class in India, but the latest definition dramatically lowers the number of Indians considered to fall in that category.Ī McKinsey Global Institute study in 2005 using National Council of Applied Economic Research (NCAER) data said 50 million people were middle class, using the definition of real annual household disposable income between Rs 200,000 and Rs 1 million.Īt the other end of the spectrum, a study by the World Bank in 2005 estimated the middle class at 264 million, using the median poverty line in 70 countries at the lower extreme ($2 per day) and the United States poverty line ($13 per day ) as an upper extreme.Īnother method, used by television channel CNN-IBN in its middle class survey in 2007, utilised consumption-based household criteria: Car or scooter, colour television, or telephone. If you bought a Picasso painting at last week 's auction for $200,000 and the annual inflation rate is 10 percent, how long would it take to double your money? If you bought a painting by Picasso for $200,000 with an annual inflation rate of 10 percent, it would take around 7 years for the painting’s worth to double. If you bought a house for $150,000 with an annual inflation rate of 4 percent, it would take about 18 years for the house’s worth to double based on the Rule of 72.ī. On top of that, you still have your 10 million dollars that you got from when you sold your company, On top of that, you sell the three houses for 2,000,000 dollars each and you get 6 million in total!, add 6 million to the 2 million you got, and it comes in at 8 million dollars of passive income. Now multiply that by the ten years that went buy and you get 2 million dollars. Now multiply that by 3 and you get around 200,000 dollars per year. Let say that one of the three properties were being rented out for $5000/ month, meaning 60,000 per year. On top of that, I will sell my business to a larger company for 10 million dollars: chum change for many bid timers out there. With the 5 million, I would invest in real estate, buying 3 rather nice properties in the garden village area in Burnaby, renting it those all out to rich and old families. Well I would split it up into three parts again: 3 million in Savings, 5 million in investing and 350,000 in spending. Now I’m asked the grand question again: What would I do with 8.3 million dollars.
MILLION DOLLAR PYRAMID IN CLASS PLUS
That’s eight million dollars, plus the 350,000 dollars in savings.
At this rate, I will be …show more content… Four years of owning a business and let’s just say it was very successful: It would double every year, meaning first year: a million dollars, second year: 2 million dollars, third year: four million, and the last year eight million dollars. I know 1000 dollars a month is quite a lot of rent, but in British Colombia, I think it’s reasonable. I will rent it out as passive income, for about 1000 dollars a month, and sell it after the price of land goes up. With 500,000 dollars you can buy a small, but convenient house in Burnaby. With the 500,000 dollars I will invest it in just real estate. By saving, I mean actual savings, I will put my money in a secure bank and won’t ever touch it unless it is an emergency. That means I would be putting $300,000 in savings, $500,000 in investing, and $200,000 in chequing. If I had a million dollars, I would first split it into three parts: 30% in savings, 50% in investing, and 20% in chequing.