3 ms·

The problem with that argument is that not everyone is OK with living a bare minimum cost of living life style. Also rewarding yourself for earning more can giv

by lobe 10y ago

The problem with that argument is that not everyone is OK with living a bare minimum cost of living life style. Also rewarding yourself for earning more can give you motivation to progress further. I recommend fixing your spending at a %-age of your post tax income at a maximum. For me it is 50%, but that is on the conservative side for most people. I don't always spend 50%, but that is the max. I feel it is a good compromise between preparing for the future and rewarding yourself in the present

jasonkester 10y ago
$20K was just an example. You can fix your acceptable living costs at $50k/year if you like, so long as you know that that will always be a tiny fraction of your income, regardless of how life evolves. The important thing is to not set it to a percent of your current income. Keep them decoupled. That's the important thing.