Which article does MMM say...

[khotte]

Which article does MMM say that making much over $100k doesn't mean much, because at $100k, you can retire in a few years anyway? I just read it this morning, but I can't find the article!

[khotte]

Answered my own question.

"At a certain level of income (which I feel is around $100,000 per person per year), the time to financial independence becomes so short that it becomes increasingly futile to earn more – that’s just how the math works out."

http://www.mrmoneymustache.com/2012/11/14/doubling-your-salary/

[Tabaxus]

This doesn't make a lot of sense.  If $100k gets you retired in 10 years, doubling your salary will probably get you there in 6-7.  Seems odd to say that's not a significant improvement.  Plus, as a practical matter, higher incomes frequently (but not always) come with having to live in a higher COL area.  No amount of frugality is going to make a SF, Chicago, or NY cost the same as a Colorado.

That said, certainly do agree the permanent cuts in spending are actually more important because they work on both ends--increase savings and lower cash needs after retirement.

[AllieVaulter]

Yes, working 7 vs 10 years seems like a big difference.  But I think what MMM is trying to say is that retiring 20 years early vs 23 years early is not such a huge difference.  Would you tell someone that retires at 32 that he's not retiring early because you managed to retire at 29?  You're both retiring soooo much earlier than the general populace expects (or is able) to retire that it's not a huge difference.

[RangerOne]

There are some assumptions in there.

    MMM says $100,000 per year per person. So he is assuming a dual income couple or a single person. 100k for one person and 200k for two people even after taxes is a tone of money. From an engineers perspective and most mid-management office positions this is a pretty achievable salary in a relatively short time working.

    Making significantly more requires exponentially more effort if you are trying to extract it from one salary office job. Doubling your salary at 100k is not something a lot of people can realistically achieve. Maybe after 20 or 30 years of work, but not in 10 unless you are in a very high paying industry or you do very well as an entrepreneur.

   About the highest salaried job right out of the cage is probably still an attorney, and there high salary is mitigated for the first couple years while they decide what to do with their house sized loan, unless they had rich parents.

The majority of jobs in this country do not pay significantly more than this. He is trying to show people how they make enough money to be free. Not necessarily to show you every fringe case where your ridiculous salary could get you there a little faster.

[Tabaxus]

There are some assumptions in there.

    MMM says $100,000 per year per person. So he is assuming a dual income couple or a single person. 100k for one person and 200k for two people even after taxes is a tone of money. From an engineers perspective and most mid-management office positions this is a pretty achievable salary in a relatively short time working.

    Making significantly more requires exponentially more effort if you are trying to extract it from one salary office job. Doubling your salary at 100k is not something a lot of people can realistically achieve. Maybe after 20 or 30 years of work, but not in 10 unless you are in a very high paying industry or you do very well as an entrepreneur.

   About the highest salaried job right out of the cage is probably still an attorney, and there high salary is mitigated for the first couple years while they decide what to do with their house sized loan, unless they had rich parents.

The majority of jobs in this country do not pay significantly more than this. He is trying to show people how they make enough money to be free. Not necessarily to show you every fringe case where your ridiculous salary could get you there a little faster.

That's all fair (though I'd add that very few attorneys win the biglaw lottery, those who don't end up with pretty low incomes; also, there are a lot of people who go to law school on full merit scholarships, so there are ways to avoid the house-sized loan, though I was certainly in the house-sized loan camp that took two years to wipe out).