Big Money in Seconds!

[sengsational]

We humans are typically not very good at grasping big numbers. When we hear the richest few have net worth in the hundreds of billions, it often doesn't sink in just how big that number is.

Well, what if we make each dollar one second, then take a look? We're better at grasping time than abstract numbers, so let's take a look...

So you have a couple million dollars net worth? In seconds, that's 10 years.

What about those people that accumulated the most money? In seconds, they're looking over 500,000 years!

So when you give $50 to charity, an equivalent donation by that second group would be $2.5 million!

 

[Car-Guy]

I always liked to use distance to help me understand larger $ numbers.. I drive a lot and often travel the same routes. So I know what 100 miles is from home (by points on the road - a store, gas station, church, restaurant, etc).... If I took 1 million one dollar bills and laid them one after another, they would stretch almost 97 miles. Helps me anyway.

 

[Sojourner]

Well, what if we make each dollar one second, then take a look? We're better at grasping time than abstract numbers, so let's take a look...

So you have a couple million dollars net worth? In seconds, that's 10 years.

Actually, there are about 31,557,000 seconds in one year. So if your net worth were $31.5 million, that's only one year of seconds (dollars). A "couple million dollars" only goes about 23 days. Elon Musk's net worth goes about 6,300 years.

But I do agree with your point that people are better at grasping the magnitude of big money when analogized to long time spans.

 

[TheWizard]

Time or distance analogies do nothing for me in dealing with large dollar concepts, but then, I'm an engineer.
The cost of a new F-150 or a four bedroom house in the area helps define what a decent income might be.
And multiplied x50, what a decent accumulation for FI might be...

 

[HawkOwl]

I have enough. That others may have more does not change my happiness.

 

[grasshopper]

I remember in 1999 measuring my net worth in BMW's, one BMW's, two BMW's,...

 

[kcowan]

We often used to measure our portfolio increases in Honda Civics. Then we moved onto BMWs. Now I guess we are back to Fiats!

 

[Graybeard]

For me time works.

1 million seconds is 11.6 days

1 billion seconds is about 31.7 years

1 trillion seconds is about 31,700 years

Makes you shake your head when you hear spending in the trillions.

 

[ERD50]

Time or distance analogies do nothing for me in dealing with large dollar concepts, but then, I'm an engineer.
The cost of a new F-150 or a four bedroom house in the area helps define what a decent income might be.
And multiplied x50, what a decent accumulation for FI might be...

Agreed. it strikes me that converting from one form ($) to another form (time or distance) is just making it even more abstract.

Putting the very large $ number in reference to a large number of things we can grasp (a home, automobile, etc), makes a lot more sense to me.

-ERD50

 

[aja8888]

For me time works.

1 trillion seconds is about 31,700 years

Makes you shake your head when you hear spending in the trillions.

Exactly, but remember, those trillions are just digits on a computer screen.

 

[MRG]

Exactly, but remember, those trillions are just digits on a computer screen.

And so are our investments. Just 0,1s with no real meaning outside of the context of your brokerage. Backed up on regular basis and hopefully representing the value of your account. If Fidelity, Vanguard et al. just handed you your data it would be worth exactly $0. [emoji41]

 

[Closet_Gamer]

I remember in 1999 measuring my net worth in BMW's, one BMW's, two BMW's,...

Every year we take our family on a vacation to the same beach town.

At some point in the week I calculate the cost of the week and how long I could sit on the beach drinking Coronas until our money ran out.

Still the best way for me to think about it.

 

[38Chevy454]

Here I thought big money in seconds was when the lotto numbers drawn matched your ticket.

 

[brucethebroker]

I try to remember that one billion is a thousand million.
One Trillion is a thousand billion.

 

[sengsational]

Here I thought big money in seconds was when the lotto numbers drawn matched your ticket.

I did play around a little when selecting the thread title

 

[Chuckanut]

I thought some fast talking know-it-all was going to start pumping Crypto again.

You description is eye opening and something I will remember. Thanks.

 

[2HOTinPHX]

I always found this visualization good for odds of winning the lottery. Imagine a line of pennies from the West coast to the East coast of US. Now you have to drive along the line of pennies and stop somewhere and turn over the one penny that is the winning Lotto penny.

 

[Badger]

Once you get past $20 you lose me. After that I am just too befuddled.

Cheers!

 

[Pellice]

I dunno, those seized Russian yachts do the trick for me!

 

[CatinKS]

I like use inches to explain odds of winning the Powerball to the person that always says someone has to win.

Odds
5 numbers and the Powerball Jackpot** 1 in 292,201,338

There are 63,360 inches in a mile. This means you need to pick the right inch in 4611.7 miles. You would need to pick the exact inch between New York City and 50 miles short of Anchorage Alaska. For $2 I would rather spend on something that is realistic.

 

[MarieIG]

When I think of big money in seconds, I think of gummit spending, QE2 and the printing presses. I am not concerned about big money individuals, as long as they are earning legally (i.e. as opposed to the drug cartels); and morally (which is somewhat debatable), but, for example, inhumane work conditions which might be legal in another country but which I would find inacceptable.

Personally, for me, AUM fees would be worth a second look.

Also, before I retired the "wealth management" company which worked for my last employer tried to sell me an annuity. I am one of those people who actually reads the literature. It left me with a lot of questions, but when looking at the year by year schedule of values, I noticed that it went DOWN 4% immediately upon the investment. On $300,000 this was $12,000. It went through my mind that when I first started working I made that in a six months, and it was several years before I could SAVE $12,000 in one year. I also felt as if I was looking at a shell game. Needless to say, I wasn't willing to pay a 4% commission (no matter where it was hidden) that annunity.