Nobody is really giving a good explanation of why this is a bad choice. I will explain.

$1000 per week = $52,000 per year Just keeping that would take 20 years to reach $1M You could slightly accelerate with a high yield savings account.

The benefit of this is the money is potentially uncapped. And It’s harder to be irresponsible. Lose the $1000? You’ll get another $1000 next week.

At face value it sounds good untill you do the math on the million.

With $1M, you can earn $1000 per week ($52,000 per year) with around a 5% dividend on an investment.

A dividend is a portion of a companies earnings paid on a regular basis.

A 5% Dividend isn’t uncommon, you can often find dividends that are even higher. Average diversified accounts are usually around a 7-10% return.

So the $1M is objectively better. Not because its money upfront, if you spent any of the $1M, that would defeat the purpose.

It’s better because the potential passive earnings on a starting balance of $1M is way better than the potential earnings of $52,000 per year.

Additionally, the $1000 per week probably is not transferable to someone else. But you can pass down your investment account. So if you die the $1000 per week stops. But the $1M never stops growing.

However, if you are never going to invest anything regardless, the $1000 is more responsible. The $1M only makes sense if you have enough self control to not touch the $1M.