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There's a big difference between spending, say, $50 a day and spending $100 per day, in terms of how much money is needed to retire and how much you can save.

There's a big difference between spending, say, $50 a day and spending $100 per day, in terms of how much money is needed to retire and how much you can save. A tech worker might make $200 a day after taxes. $5 on coffee isn't huge but in NYC etc it's pretty easy to blow $60 a day eating out and $100/day on rent, and that stuff can add up to where you hardly save anything.

PebblesRox 4y ago
Plus the biggest factor in how much you need to retire is what your expenses are. Significantly lowering your expenses boosts the savings rate but it also lowers that target number. For me, it's a question of values. I'd rather live frugally and have more freedom than trade away more of my time to have more stuff and convenience in my life. For others, the balance is different.