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You can save money by decreasing your savings every month instead of contributing a fixed amount. I've never seen an investment calculator or vehicle that allow
by beefman 9y ago
You can save money by decreasing your savings every month instead of contributing a fixed amount. I've never seen an investment calculator or vehicle that allows for such a plan.
- lbotos 9y agoDo you mean "frontloading" the year? As in 1000 jan, 900 feb, etc? Or was it a typo and you meant decreasing your spending?
- beefman 9y agoSmoothly decreasing every month for the entire savings period. Maybe it isn't popular because income tends to increase over the course of a career?
- jogjayr 9y agoIt doesn't make much sense to do logically because you can front-load a lot less at the beginning of your career. It's far better to design a sustainable lifestyle you like when starting out and aggressively fight scaling it up with your income. If you do that the numbers will work themselves out.
- beefman 9y agoOn the other hand, rising disposable income is supposed to be a good thing (annuities for lottery winners etc). Cost of living tends to rise with age, too (kids, healthcare...).
- jogjayr 9y ago> rising disposable income is supposed to be a good thing That's the lifestyle inflation I'm alluding to. If one can be happy spending X/year 5 years ago, why can't one be happy spending inflation-adjusted X/year today? Agree about kids and healthcare but those aren't "lifestyle" costs.