Do you like to work? Well done. But know that you are not in good company, because people would usually prefer to travel, read, do fitness, or pursue their favorite hobby, rather than work. But to do this we would have to live on an income, and this income must guarantee us at least the minimum goals, which are to have a roof over our heads, clean clothes and something to eat and drink. How much money does it take to make a living, then?
Wanting to simplify as much as possible, there are two types of annuities, securities and real estate. The former consist of a certain number of stocks and / or bonds that generate enough interest or dividends each month to allow us not to work. The second consists of the income deriving from the rental of shops, industrial warehouses or owned apartments, and leased to third parties. We have addressed the issue specifically in a very recent article, which you find who. Let’s try to develop the two things in a few lines and if we can reach a complete answer regarding the question of the title.
How much money does it take to make a living?
When it comes to investment annuities, the issue is complex. Average investment in equities has returned 6.1% a year over the past 20 years, and investment in bonds 5%; it therefore takes at least 250,000 euros to live on just over 1,000 euros per month if invested in bonds and about 210,000 to have the same amount if invested in equities. It’s not a lot, but it’s also not a little. And be very careful. Given the ups and downs of stocks and bonds, there will be years of fat cows, and years of lean cows. But you will need a steady income. And investing in securities generates wealth over the long term, not immediately. So, the more money you have to invest, the better. But the latter is true even if you invested 10 million euros.
As for real estate rents, apart from referring to the article reported above, it takes a lot of money to generate a decent income. At least a couple of shops, and in the right location, as well as apartments and / or warehouses. And in this specific case you will still have to deal with any arrears, which unfortunately cannot be excluded a priori.
Is there a single answer, then? No, unfortunately, because it depends on different factors, type of lifestyle and place where you live. Also considering that life in the North is much more expensive than in the South, and that you spend more in a city than in a town or countryside.
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