a few seconds agoFor 16 years working in Switzerland, saving can become a millionaire
Periskopi(6 years ago)
(6 years ago)We all set a few goals to do at any start of the year, but if one of them is to become a millionaire, unfortunately we have to tell them that you have to wait a while. Rather, to have the first million in your account, it will take you exactly 1 century and 43 years [...]
A family with average incomes in Albania cannot save more than 2,000 euros annually. According to Albania's Institute of Revenues and Living Levels, the average monthly income per individual in Albania in 2018 was $26,144.
An Albanian family consists of an average of 3.7 members, meaning that average monthly income for a family is 96,736 dollars. And the monthly expenses of a family in the country - including food expenses, clothing, education, recreation, living quarters, and health - are 75,935 dollars, according to the Family Budget Survey.
Taking into consideration the available income and expenditures that an average Albanian family has, the Monitor has estimated that possible savings over a year is not more than $2249,500, or about 2,000 euros, albinfo.ch conveys.ch.
But how long would it take this family to become a millionaire?
If each year this family saved the remaining (2000 euros each year after it lifted spending), according to the money-time value formula, where we assume an average annual interest of 1.5% and get everything else unchanged and constant, it would achieve the goal only after nearly 1 century and 43 years.
The value of money in time helps us to calculate the value of an asset at a specific time in the future by assuming a certain interest rate. In this case, an average interest rate has been taken between interest in treasury bonds, considered investment in letters of non-resistable value and deposit interest.
If we did not consider the value in time of money, that is, if 2,000 euros had the same actual value in the future, an average of 492 years, or about 5 centuries would be a family.
Where it gets faster than a million dollars.
A million dollars are made faster in Luxembourg, Switzerland and Iceland, where an average of 16 years are needed, according to The Economist's estimates.
Then they rank the United States of America for about 17 years, the Netherlands and Denmark, with 19 years respectively.
In Austria and Belgium it takes about 20 years to make $1m.
In the German state, with the average salary, $1m can be made for 21 years, while in France and England it will take about 23 years. In Italy, on average, it will take 27 years and Greece 38 years.
More time to realize the first million is needed in countries of birth. It takes about 41 years in Baltic countries.
Among the European Union member states, Romania and Bulgaria requires more time to make a million dollars. It takes approximately 75 years in Romania, while in Bulgaria it takes 1 century and 26 years.
In the latter place is Armenia, where compared to the previous year, an individual will be two centuries and 39 years from 2 centuries to 15 years.
