If you want to achieve financial freedom and live a carefree life, how much money do you need to have?
Imagine that you have six months a year to travel around the world and enjoy the customs of each place. Everywhere you go, you choose to stay in a top-notch hotel, and the room rate per night is about US$1,000. In this way, after six months, your accommodation expenses will be nearly US$150,000. Of course, there is no shortage of food, drink and fun. The average daily consumption is 500 US dollars, and in the past six months it has been 75,000 US dollars. Including travel expenses between various places, each trip costs about 5,000 to 10,000 US dollars, which will cost 50,000 US dollars in six months. Calculating this, you will have to spend US$275,000 just for this six-month stay.
Then, for another six months, you choose to settle in a first-tier city at home and abroad. You own a $3 million apartment and a $10 million villa. The annual property, tax and municipal fees add up to $190,000. Add in your daily personal expenses of $300, and it will cost you $55,000 in six months. Therefore, the fixed expenses for this six months are approximately US$245,000.
Next, let’s look at annual fixed expenses. You need to hire housekeeping staff to take care of your daily life, which costs about $50,000. You have two vehicles worth $500,000, and your annual gas and insurance costs are approximately $20,000. You will also need to pay filial piety to your elders and communicate with your family every month, which will cost you US$10,000, which will be US$120,000 in a year. The pocket money given to my wife is US$15,000 per month, which is US$180,000 a year. Add in your hobbies and personal shopping, and that's about $120,000 a year. Add these up to annual fixed expenses of $490,000.
Then, add up these expenses, and your total annual expenses reach a staggering $1.01 million. If you want to obtain these returns through investment, based on a safe capital return rate of 4%-5%, your total assets need to be at least US$20-22 million. Of course, although your properties and vehicles do not directly generate cash income, their value cannot be ignored. They add up to US$13.5 million. Therefore, your net worth needs to be approximately US$33 million, which converted into RMB is 2.500 million yuan.
In this way, you can live the life of a modern little emperor, where you are carefree, have someone to take care of you, your wife loves you, your family respects you, you can eat whatever you want, go wherever you want, and do whatever you want. Of course, the premise of all this is that you have enough wealth to support your lifestyle.
