I don't think it is a good idea to spend your money on luxury stuff before you think a way to make passive income first. $1m is only good for a house, starting a business and a cheap car. $2m is not really much different than having $1m. Maybe a slightly bigger house, still not a too expensive car but a better business and more chances to fail and retry.
Personally, I like to consider $2million to be pretty damned close to twice as much as $1million, and really, if we are considering how much money we need to survive or to say fuck you, there can be a pretty BIG ass difference between $2million and $1million.
Of course, our simple traditional formula allows for some presumptions that any principle amount should allow you to approximate getting a 4% per year return on such amount, so $1 million should be able to generate you with $3,333 per month in passive income and $2million is going to generate you about $6,667 in passive income per month.
I think that there is a pretty BIG difference between the two, and sure you can get by with $3,333 per month, especially since it is passive income, but $6,667 is going to feel a whole hell of a lot better and even allow you to buy much nicer things for yourself, especially if you delay in gratifications.
I think that another factor that any of us has to be considering whenever we are trying to figure out whether we have enough value to live off of the passive income without depleting our principle is the value of our assets at the low of the market (we should not be measuring the value of our assets from peaks or from some kind of average or any of that bullshit... we need to focus largely on the most likely worser scenarios of the lows).
If we are measuring bitcoin by itself and without any other assets, then we are engaging in additional risk that seems to be focused too much on one asset, but for the sake of argument, if we are focusing only on the value of bitcoin and its worser case scenario as a low, I believe that currently we could approximately calculate $5k to be our worser case low.
Yeah, I might be wrong by a bit, and nothing is 100% sure, but $5k, as our current worser case scenario low seems relatively safe.
So, if $5k is our low, then we would need to have at least 200BTC to be comfortable with a goal of a $1million dollar holdings or 400BTC with a goal of a minimum of $2million.
Of course, with the passage of time, we are likely going to be able to move up our "worser case scenario" perspective, and therefore we won't need as many bitcoin in order to feel comfortable transitioning into purely living off of the passive income depending on our targeted amount that we believe is minimally enough to live comfortably and within our expected standards.
If you have assets other than bitcoin, then your calculations are going to come out a bit different in terms of the total size that is necessary for your bitcoin holdings, but in any case I believe that 4% does remain a pretty safe amount as long as you are calculating with the worser case scenarios in mind.
You get the idea.
I'd never spend my hard earned cash on these too luxury stuff unless I got them nearly for free. The money you get by hodling bitcoin is not free money. You are getting paid for the risk you took.
Exactly!!!!!! Takes a long fucking time to build up assets to a level in which you feel that it is sufficient to transition into fuck you status... which may or may not include the consumption of luxury items.
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