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In 2020 we stopped budgeting and started spending on more things than in previous years. We spent freely.
And we're in a much much better position than we were at the end of 2019.
Lesson: income is way more important than spending. And childcare spending > all other expenses.
And we're in a much much better position than we were at the end of 2019.
Lesson: income is way more important than spending. And childcare spending > all other expenses.
People like to talk about frugality because it makes it seem like anyone can easily become wealthy. It's bull.
There's no amount of Starbucks you can skip to counter a low income. You cannot make enough lunches at home to cover the cost of daycare in many places.
There's no amount of Starbucks you can skip to counter a low income. You cannot make enough lunches at home to cover the cost of daycare in many places.
Obviously there are people with high incomes who are living paycheck to paycheck and many of them could benefit from cutting back spending. But it's such a small piece of the puzzle for the vast majority of Americans.
Here's the order of impact for FI:
1. Income
2a. Whether you have kids
2b. Whether you have health issues/affordable access to good health insurance
3. Spending on housing
4. Transportation spending
.
.
.
.
.
.
.
????. Everything else
1. Income
2a. Whether you have kids
2b. Whether you have health issues/affordable access to good health insurance
3. Spending on housing
4. Transportation spending
.
.
.
.
.
.
.
????. Everything else
