I woke up early even for me and decided to take the gift time to catch up on some current events reading. I was browsing through some of the news sites online and in the comments section of an article on how tough economic times are someone relayed the following. The owner of an online game site that is fairly popular made revenues this last year of only about $20 million dollars. His after tax, after expenses share was $1 million. He was quoted as saying that he felt he put in a lot of work to "only" come away with $1 million.
Only $1 million dollars. Imagine living long enough so that I can hear someone complain about making a million dollars. For a few minutes I allowed myself to think about what my life would be like if I made $1 million dollars a year clear money. What would I do differently in my spending? Except for giving more tzedaka and creating a bunch of memorial scholarships for family members who are no longer living I couldn't think of all that much that I would do differently. There are an awful lot of societal troubles that could be alleviated with that kind of money but what is it that I don't have that $1 million dollars could bring me?
For those just starting out in life that money could bring their own home and money to pay tuition with. It could pay off debt. Okay, that takes care of about $500-600 thousand dollars in the first year, leaving $400 thousand to play with. And then what? My family can attest that I have on more than one occasion said that I would make a rotten rich person, because for me the height of luxury would be having both a milchig and a fleishig dishwasher in the kitchen, and since I have both, I already have all the luxury I lust for.
What would you do with $1 million dollars a year? Would you complain?
3 comments:
I agree that "only" isn't the best word to modify $1 million in after-tax income. I hope I NEVER use the word "only" to describe any income I ever make.
But let's take a step back. A person who goes into business for themselves takes tremendous risk. Even if an individual forms a corporation, the risk for any debt is squarely on their back. If things fail, now or in the future, and they have loans, it is on them. If they have employees, they also want to take care of their employees. Anyone in the tech business knows things can collapse overnight. And, if the business fails, the owner wonders where he will go and worries about his employees.
When you are on your own, you really can end up working around the clock (and your spouse might be helping too, without pay) because there is no one to pass the buck to. When you are on your own, you also have to be somewhat of a jack of all trades. Even if you farm out certain functions, you still have to get your hands dirty in areas you might not have to deal with if you were working for someone else, and in areas you aren't comfortable with. You worry about liability for business practices and hiring/firing.
And, few businessmen take home everything they earn. I'm sure that he is leaving a good deal of money in the business. So the money he actually can does take home (which granted is fairly significant) might make him question why he doesn't just work for someone else.
In addition, he might live with some fear of how their life will change if things go belly up. I'm sure a business owner bringing home that type of money has taken on a large home, perhaps private school tuitions, and all the trappings of such an income. He knows that if he ever has to return to an average job, his family will have to make major changes.
Like you, I'm happy with my two dishwashers. But, wealth and ownership comes with its own challenges. I wouldn't use "only," but I think the "only" refers to things beyond the money.
SephardiLady,you are correct in your statements about business ownership. There is a lot of risk and a lot of hard work involved. And like you, I believe that using "only" was very ill advised. But I would add this. There are any number of people who are employees, particularly today, who also work incredibly long hours, have lots of pressure on them, and have to worry about the aspects you mention. Managers who aren't owners have all the headaches with none of the real perks. And the money they get for this is nowhere near the one million dollar mark. Yes, being in business for yourself is a gamble, but this owner clearly won.
Just one thing. The way I read the posting, that one million dollars is his free and clear--it's after expenses.
Allen-Definitely ill advised. And I agree that supervisors and managers often have the same type of stress. But, they still aren't personally liable.
I read the $1mil same as you, but I don't think what you leave in the business is an expense.
Great comemnts.
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