Savings accounts are paying 5.25%.
If you simply put $2,000,000 in one, you can literally make $250k/yr to live on.
Why arenβt more people doing this?
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Life in the USA:
Salary: $5k/mo
Rent: $1.6k
Income tax: $1.1k
Groceries: $550
Gas: $250
Car insurance: $200
Health insurance: $100
Electricity bill: $150
Water bill: $100
Phone bill: $100
Eating out: $350
Shopping: $475
Money left: $25
How do people afford to live?
A $400k mortgage at 2.75% is $1.6k/mo.
A $250k mortgage at 6.75% is $1.6k/mo
Price has to decline by 37.5% for the same monthly payment.
This isnβt good.
My landlord wanted to increase my rent from $1,375/mo to $1,415/mo.
I said no thanks and moved out.
He now has my room for rent for $1,200/mo after 4 months of vacancies.
Allβs right with the world.