The Hustle has an article on
At first glance, isn’t the budget missing a few lines? Health insurance? Paid by employer, I assume. Transportation? No need for a car in the city, I assume. Utilities? I guess renting a room in a 5-bedroom can become quite a deal when splitting things that many ways.
On the other hand, how does $165,000 gross salary end up as only $91,000 take-home pay, even in California? His true saving rate might be even higher than stated.
Let’s forget the details. He makes a big salary, and spends very little. That’s all you really need to know. I don’t question the overall spending numbers because I also lived on less than $20,000 a year as a 20-something single person in a budget apartment shared with a roommate. Even that 165k income is simply about average for a tech worker, per
(If you are prone to salary envy, don’t poke around the tech worker salary comparison site
I’m happy for Kevin, but is
Now, I would agree if you are a household that is earning significantly over the median income, then yes, you have the power to quickly build a pile of money that is big enough to change your life. “Financial freedom within 10 years is for the rich” isn’t quite as catchy. A positive aspect of the FIRE movement is that it is showing people an alternative way. You don’t have to save 85% of your income, but you should realize what you are giving up if you’re just spending it all.
My overall message? Personal finance still matters. You can make a difference. You can raise your income. You can prioritize your spending. I avoid the acronym FIRE acronym because the words are confusing for too many people. The vast majority are not going to “retire” completely from paid work in their 30s or 40s (even if they technically could). However, you can still read about the examples of others in order to find inspiration. Take what works for you, and leave the rest.
The fact is, if you are able to use your saved money in order to lead a life with less stress and more meaning, then you are winning the game as far as I am concerned. Different job/same place, same job/different place, less hours, more flexible hours, better hours, there are countless possibilities to improve your daily life.
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