How much money do you need to make to spend

[calvindog]

Originally Posted by glchen

You should have a minimum gross income of $80K per year, if you want to spend $40K on a baseball card.

A way to re-frame this question is how much do you need to make a year if you want to save/invest $40K a year. A common guideline recommended by financial advisors is the 50/30/20 rule where 50% of your income goes to your needs like essential living expenses including housing, groceries, utilities, and transportation. 30% goes to wants which are discretionary spending such as entertainment, restaurants, and hobbies. 20% goes to savings. If you club together the wants and the savings, then you could put 50% into your investment/hobby, which makes the minimum income you need to be $80K for a $40K baseball card.

What about taxes?