How Much You Earn and Spend – Over Your Lifetime

Have you wondered what your earning potential is? And do you know how much you will spend over the course of your lifetime? The amount of money you will earn is fixed. Do you know what your number is? We aren’t very good at predicting the future – especially when it comes to finances because we tend to be short-sighted when it comes to money.

If you make $120,000 and you’re 35 years old, assuming you retire at age 65, you will earn approximately $5.3 million in your lifetime. Sounds like a lot, until you realize $1,537,000 will go to income taxes

You can find out your lifetime earning potential by matching your age and the approximate income you earn in the table below.

earning potential3

You will burn through your lifetime earnings a lot faster than you think. Below is a chart that breaks down what your lifetime spending will look like. Using the above example of a 30 year old professional currently making $120,000.


This is why it’s so important to not only save but also to invest throughout your working years. Over the course of your lifetime, you will accumulate $405,100 in savings, an equivalent of approximately $6,752 / year, and if you don’t consistently save this, chances are it will be spent on miscellaneous purchases and you will not be able to afford your life.

Treat every purchase as a withdraw from the $5,300,000 sitting in your bank account. You can chose how you will spend this fixed amount of money. Some expenses are unavoidable such as income taxes and food. However, you have complete control over how much entertainment you spend, what type of car you drive. Be mindful of how you spend your finite amount of money over your lifetime.

Leave a Reply

Subscribe to receive relevant financial tips and advice to become more confident with your money decisions. Also receive a free copy of Money Mistakes - a look at the most common financial mistakes the millennial generation is making and what you need to do to be financially successful.

You have Successfully Subscribed!