This really took off!
I still donít know...maybe some of it is based on geographic location. The average salary in my county is $31k/yr. Weíre the 4th largest county in the whole state! Maybe thatís why $60,000 cars seem like such a crazy expense. Run-of-the-mill new houses are $200k here. Somebody was talking about all the millionaires in their town. I just donít see them. Around here if you work on Post youíre making big money at $80-100k/yr. I make more than anyone in my immediate family and itís still hard to fathom how some of these kids are making what they do.
YouTube is great and all but itís really friggin dangerous for a lot of small children. Iíve been a teacher for a decade and itís night and day between kids then and now. Their attention spans are awful because they sit on those screens and itís just BLAM BLAM BLAM COLORS COLORS NOISE NOISE every 6 seconds. Weíre juuuuust now seeing some parents starting to realize ďhey, maybe this isnít good on a developing mind...Ē
I think making money on Youtube is a lot like professional sports. Theyíre are tens of thousands that want to be in the big leagues, but only a few actually make the big payday. I know some people that post videos on there and they havenít taken off. Itís hard to do. But for those that do take off... More power to them I guess. They figured it out.
I wish I could have $10,000 fall in my lap hahaha. I read that if you put $10,000 in an S&P index fund in 1978 and didnít touch it, it would be $780,000 today. Howís that for compounding?!
Geography does play a part. I live in the Bay Area, there are vast stretches, from San Francisco to San Jose, where nearly every 3 bedroom 1,200sq/ft house will sell for well over $1,000,000. Itís expensive to buy a house or rent an apartment, but as a byproduct, wages are inflated too. If someone bought their house 20+ years ago, when prices were still relatively reasonable, they would likely have considerable disposable income. If their kids still live at home and have a decent job, so will they. Once the kid moves out, they will either move out if the area or get a reality check on the cost of living. Several friends and former co-workers have kids that couldnít afford to buy houses in the Bay Area, so they moved, often out of state. When my friends reach retirement age many sell their houses and follow their kids, they often buy a large houses on a couple of acres for a fraction of what they sold their modest house for.
Your analogy about YouTube and professional athletes is very accurate. If there are any Chanelís you watch, search their name along with socialblade, it gives channel breakdowns including subscribers, daily views, monthly views, estimated revenue and more. Most channels make a few hundred to a few thousand dollars annually, if that.
I donít think your numbers on the S&P are accurate. That would 78 times your initial investment, I donít think itís gone up that much, even if you would have reinvested any dividends. I just checked, the S&P was at 90.25 on January 1st 1978, today it closed at 2876.32, which is a multiple of 31.87.