Wednesday, 19 February 2020

Spending a ''Million'' dollars?

Recently I was watching youtube where I chanced upon this video where a guy won a million dollars from a contest held by a youtuber named "MrBeast" and would have to spend the million dollars in 24 hours.

This is the video:

For those that did not watch the video.
After taxes of $340,000, and Mark promising another contestant $50,000 and another $100,000 to his coach, his total winnings dwindled down to $510,000

At the start he spent around $23,800 on electronics for his wife's friends and their family

The next place where he spent his money was at a car dealership. He bought 2 cars for a total cost of $100,000. This brings his total spending to $123,800

Following that he bought a house at $165,000, a wedding ring for $20,000 , $30,000 for furniture for his house and another $30,000 on appliances for himself, $15,000 on the house closing, $20,000 for utilities and bills, $30,000 for his mother and his mother in law which would have brought the total to $433,000 he has $77,000 for himself of which $50,000 was for investment and $27,000 he set aside as savings.

Overall most of his spending actually went to his family which is really generous of him and after winning $510,000 it is normal to splurge a bit on luxurious items however, what if he did not splurge as much and decide to save most of his money and put them into investment?

I would definitely not have bought two cars and most probably would not spend as much as he did knowing the power of compounded interest that investing can give me