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> It really doesn't matter how much you earn. Real wealth is in not spending it. Have to add on that this is definitely not correct. Yes you must not simply in

> It really doesn't matter how much you earn. Real wealth is in not spending it. Have to add on that this is definitely not correct. Yes you must not simply inflate your spending to match your 100% of income if the latter increases, but while there's a limit to how much you can decrease outlays, income increase has no exact limit. Bob makes $60k, never buys coffee, brings lunch from home every day, stays focused on his personal finances, saves $5k/yr on lunch & coffee expenditures. Alice makes $60k, buys a $5 latte every single day, spends $12-15 per workday on lunch, focuses on job skills & networking, and negotiates a $10k raise upon switching jobs. Who comes out on top in this situation? My point is not that budgeting or frugality isn't useful, but that focusing on changing outlays and considering income fixed or even irrelevant, as you suggest, is not a useful or accurate way to look at things.

woodpanel 6y ago
I think you‘re making a good point. I would add though, that 6510‘s statement... > * it really doesn't matter how much you earn. Real wealth is in not spending it.* didn’t remind me of extreme frugalism (in which case I would side with your argument) but with my encounters in the workplace: No matter how much most people increase their income, they also increase their spending. And some manage to par their spending increases with with their income increases. Like many in tech, I‘ve made great income progress and during that I saw and continue to see colleagues struggling financially even though they‘re in the top income decile.
- sequoia 6y ago
  To me, suggesting that I save money by not buying coffee for fifty years is extreme frugalism.
6510 6y ago
12-15 is 1200-1500 cent. Lets say 1300. 10 cent coffee (12 euro/kg 30gr/liter) + 20-50 cent sandwich (5 cent slice or 15 cent bun, a 10 cent egg and/or 25 gr cheese 25 cent, 5 cent butter) is 30-60 cent. Lets say 40. 1300/40 = 32.5 while Alice only got a 17% raise. The extra 5k doesn't buy her anything. She will just favor the 15$ lunch which is 20% more expensive(!) Coffee was just an example of course. Bob wont be able to save this much on everything while some things will be even cheaper. There are other perks like growing your own food and making your own stuff. But the real kicker is perhaps that Alice could [naively] spend all of her savings on a big purchase, get fired and turn her life into hell on earth. If Bob does that he can be reasonably certain he will figure it out. His big purchase is also more likely something that can be converted back into cash.

woodpanel 6y ago

I think you‘re making a good point. I would add though, that 6510‘s statement... > * it really doesn't matter how much you earn. Real wealth is in not spending it.* didn’t remind me of extreme frugalism (in which case I would side with your argument) but with my encounters in the workplace: No matter how much most people increase their income, they also increase their spending. And some manage to par their spending increases with with their income increases. Like many in tech, I‘ve made great income progress and during that I saw and continue to see colleagues struggling financially even though they‘re in the top income decile.

sequoia 6y ago
To me, suggesting that I save money by not buying coffee for fifty years is extreme frugalism.

6510 6y ago

12-15 is 1200-1500 cent. Lets say 1300. 10 cent coffee (12 euro/kg 30gr/liter) + 20-50 cent sandwich (5 cent slice or 15 cent bun, a 10 cent egg and/or 25 gr cheese 25 cent, 5 cent butter) is 30-60 cent. Lets say 40. 1300/40 = 32.5 while Alice only got a 17% raise. The extra 5k doesn't buy her anything. She will just favor the 15$ lunch which is 20% more expensive(!) Coffee was just an example of course. Bob wont be able to save this much on everything while some things will be even cheaper. There are other perks like growing your own food and making your own stuff. But the real kicker is perhaps that Alice could [naively] spend all of her savings on a big purchase, get fired and turn her life into hell on earth. If Bob does that he can be reasonably certain he will figure it out. His big purchase is also more likely something that can be converted back into cash.