“The most important thing to note is that cutting your spending rate is much more powerful than increasing your income. The reason is that every permanent drop in your spending has a double effect:
- it increases the amount of money you have left over to save each month
- and it permanently decreases the amount you’ll need every month for the rest of your life”
The above is a quote from the blog MrMoneyMustache one the gurus of intense saving and retiring early, like age 30. I think these FIRE folks are mostly a farce for average people, but here he has an excellent point.
Those people who can’t save or claim to live PTP are mostly kidding themselves. They have established a standard of living and spending based on their incomes before saving when it should be the other way around.
You get to keep and spend what you earn after taxes. Make that after taxes and saving, and you will have a brighter future for sure.