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I feel like there is a much simpler version of this. “Live within your means” Invest as much of your salary as possible. Pay for your living expenses with fr
by tarr11 5y ago
I feel like there is a much simpler version of this.
“Live within your means”
Invest as much of your salary as possible. Pay for your living expenses with free cash flow. If expenses exceed cash flow, reduce expenses.
When your free cash flow exceeds your living expenses you can generate wealth (aka “you are wealthy”)
- PaulDavisThe1st 5y agoThe article is really about what you do a top 8% income once you've paid for the basic expenses of life. You said "Invest as much as possible" - the article is about the choices you might make there.
- agumonkey 5y agoThere are level effects though, a non rich person will have way more struggle on just about anything and less time to find solutions, and also a lot less slack given to her to deal with the problems. CK made a nice bit about that, poor people get fined for being at negative $5 while rich people gather nice returns on savings.