This really underscores the value of capital wealth. Once you own your own home, actual living expenses are quite small. Personally I budget and save for big e

This really underscores the value of capital wealth. Once you own your own home, actual living expenses are quite small. Personally I budget and save for big expenses like insurances, new car and holiday's. When you are forward planning like this you end up saving a lot of your income for those once a year items. The person you are replying to probably isn't investing all of that 10k, but he's putting it into a saving account on a regular basis knowing that in month 7 he'll be paying out 500. The interest and habit of saving probably means that a big chunk is going on long term savings.