Here's an alternate explanation for his calculation. People usually spend around 2-4% of their annual income on vacations. Depends on a lot of factors of course

Here's an alternate explanation for his calculation. People usually spend around 2-4% of their annual income on vacations. Depends on a lot of factors of course, but that's a reasonable amount. A person earning $10M could afford to blow 2% on one weekend ($200k), 2% on fancy vacations rest of the year and still spend consider themselves fairly responsible.