Sure! Let's compare taking your first job at a high salary in a high cost of living area, versus a lower salary in a cheap place. The latter might net you mor

Sure! Let's compare taking your first job at a high salary in a high cost of living area, versus a lower salary in a cheap place. The latter might net you more after-tax "profit" in the early years, but several factors can upset that balance over time: - Exponential raises (x% per year) cause the higher pay to more rapidly outpace the baseline costs of living, even if higher. - Many unexpected expenses, like a medical disaster or market losses, can offset taxes on higher income, leaving room to more rapidly recover if you have a higher income. - Once you've established a higher salary point, it is generally easier to retain it, even if you take steps to mitigate your costs like moving farther outside the city. These are just some examples. Overall, having a higher income opens up more possibilities for investments that alter the cost dynamics of the system, versus putting up with the cost dynamics that are available to lower income folks. For the same reasons the get rich richer, limiting yourself to the options of the poor can reduce your opportunities. Edit: I should note that this doesn't take into account cases where you find special opportunities in a low cost area! I know folks who were able to reinvest surplus income from early jobs in local businesses, effectively acting higher up the capital food chain earlier in their lives, because they stayed in cheap places. However, this is a more active strategy that didn't seem to be the same spirit of the "save more from your income so you can retire early" OP.