What you fail to understand is that most people don't make enough to save much of anything, the key to your success is you started out an engineer at 20 yrs old, engineering school is very difficult and expensive, most people do not have what it takes to achieve that, so you started out with 50% disposable income or more to save, that is very different from the 5% for most.
The way the manufacturing jobs went away to China and Mexico, unless you are a doctor, lawyer, engineer, you don't have much of a chance, but you can live in a single wide trailer and work two jobs and maybe have a slightly better chance eventually.
LOL when I was in engineering school in Iowa city, I lived just fine on poverty level spending.
When I got my first job in Chicago in 1962, I lived healthy on $125/month including food, rent and transportation..
Because I drove 15 year old jalopies, looked for bargain clothes on clearance sale, and rented a cheap 1 bedroom apartment.
My colleagues drove new cars, and lived in single family homes, saving probably nothing.
USA has the cheapest food compared to any Western country. And older used cars are very cheap.
But most people want newer cars, fancy furniture, and go on expensive vacations.
Just look at how many new cars are sold each year. Cars can last 15 years. How many people keep them 15 years?
No wonder they have little savings. How much you save depends all on how much below your means you are willing to live.
In today's dollars that would be a very conservative $12,734.55 a year.
College cost and medical costs have the highest inflation rates since the 60s
I don't think you have a feel for the cost of living in today's world.
Your success has more to do with when you were born more then it does for you lifestyle. You were born at a very opportune time.
You should price out what it costs to live now and then get back to us.
LOL I put 2 kids through college, one graduated in 2015, the other in 2017 with BS degrees.
The older kid I put through law college. Both have zero student loans!
Yes, I have excellent feel for cost of living in today's world.
Yes, my kids came late in my life, I was 53 when the 2nd kid was born. That was another big help in old age prosperity.
Don't have kids in your 20's.
In case everyone is missing the whole point I am trying to make is this....
Sacrifice like hell when you are in your 20's and early 30's. Save 1/2 to 2/3rd of your income.
Invest it in long term index funds. Forget short term trading. And you are going to have a very prosperous old age.
Edited by pdx5, 24 May 2020 - 08:12 AM.
"Money cannot consistently be made trading every day or every week during the year." ~ Jesse Livermore Trading Rule