> A 22 years old now that saved 10% of his salary toward an index fund with 4-5% expected returns over a decade is disadvantaged versus someone who just spendin

> A 22 years old now that saved 10% of his salary toward an index fund with 4-5% expected returns over a decade is disadvantaged versus someone who just spending his money for material rewards now (in 7%+ inflation long-term environment.) I would disagree here. This now 32 year old was saving their income during one of the longest booms in American history, and depending on where he invested, now has multiple years worth of investments producing solid returns. Also, this 22 year old was in a better position to buy a house or car because they also lived through a bust time where lending was much more restrictive in the past. No savings means no house. The person who went into debt still has all that debt, but now will be buried in a rising interest rate environment. Since they never saved, they are facing rising rents, plunging them further into debt. People with assets benefit from high inflation environments. People spending more than they earn aren't in a position to acquire assets.