There was a tweet today that asked “How much money would you have to win to consider quitting your job?” Probably a lot of people have thought about that if they ever bought a lottery ticket. So here’s what I think…
First, I’m not a financial planner, or accountant, or anybody qualified to give financial advice. So if you’ve won some money and are actually wondering whether you should quit your job then 1) Congratulations on winning and, 2) Go see a financial planner.
I think that I would quit my job if I won enough money that I could replace my work income using only the interest income from my winnings. So taking your annual income and dividing it by the current interest rate will give you the amount you need to have won to quit your job.
Since I’m not too crazy about telling you how much money I make, let’s just take an example:
With a yearly income of $40,000, at the current 2% interest rate (for a GIC – you’re not going to get anywhere near that in a Savings account), you would have to win $2 million dollars to be able to quit your job! And you probably want to win more since you will want to buy nice things, travel, etc. and that amount would just cover what you make at your job right now.
Anyway, that’s my two cents. Again, if you’re seriously thinking about it, take the advice of a financial planner, not mine… 🙂