Would you spend more if highly paid?

[4tify]

I have a friend who is highly paid and has no problem spending lots of the money she earns. I can’t imagine spending what she does but it got me wondering about why not? If you’re making lots why not enjoy it? Is it still worth being frugal after a certain level of income?

If you were making, say $500k/yr, would you still save the same percentage of your salary or would you allow for lifestyle inflation? How would you think differently about money or not?

[Kris]

Personally, I have everything I want, and I pretty much buy whatever I want, and for the most part I travel as much as I want (pre-Covid, that is).

If I made $500k a year, I would probably move into a slightly nicer house in a slightly nicer neighborhood. And maybe spend a little more when we traveled. But for the most part, my day to day life wouldn't be all that much different.

[Arbitrage]

Over the past ~decade, we've increased our HH income from $120k to close to $300k.  Not spending any more, really, if you allow for some understandable increases due to two new people coming into existence during that time.  We perhaps do spend a bit more on vacations overall, but our spending there is still pretty tame. 

At this point, if we were making a substantial amount more, I'm not really sure, since our focus is truly on FIRE (we're hopefully in the home stretch).  Earlier in the journey?  I'd like to say no, but that's probably untrue. 

[I'm a red panda]

I have a friend who is highly paid and has no problem spending lots of the money she earns. I can’t imagine spending what she does but it got me wondering about why not? If you’re making lots why not enjoy it? Is it still worth being frugal after a certain level of income?

If you were making, say $500k/yr, would you still save the same percentage of your salary or would you allow for lifestyle inflation? How would you think differently about money or not?

Emphasis mine.
Your question confuses me.  If I saved the same percentage of my salary, it would still allow for lifestyle inflation.  That's what percentages do.

And yes- we have increased spending as we increased income.  We save about 50% of our income.  So we spend a hell of a lot more now that we are high earners than we did when our combined income was $40k. 

I have many frugal habits. I also like international travel, scuba diving, photography, and wasting way too much money on nail polish.  We are FI. I have no interest in RE.


But if your income increases and your spending does not, your percentage saved should be increasing, not staying the same.

[ageless-human]

I’m sure at some income level I would spend more because I wouldn’t be shopping around for the lowest price for something I wanted.

For instance, I was in Williams Sonoma the other day and saw a nice cast iron Dutch oven, they wanted ~$300, that’s a little high for me, so I settled on a $50 lodge branded version.


At a high enough income level I think I would just buy the one in the store and not think about it. I’m not sure how high my income would have to be though.

[Metalcat]

We used to make a lot and spent about the same as we do now that we're down to less than half of that income.

We live exactly the lifestyle we want to.

[mm1970]

Over the past ~decade, we've increased our HH income from $120k to close to $300k.  Not spending any more, really, if you allow for some understandable increases due to two new people coming into existence during that time.  We perhaps do spend a bit more on vacations overall, but our spending there is still pretty tame. 

At this point, if we were making a substantial amount more, I'm not really sure, since our focus is truly on FIRE (we're hopefully in the home stretch).  Earlier in the journey?  I'd like to say no, but that's probably untrue.

Same.

[RWD]

Our income has more than doubled over the last 10 years but our spending has only approximately increased with inflation. More income would change little.

[StarBright]

I would absolutely spend more!

I have an over-active security gland which is why we save so much, but I also have champagne tastes and would 100% indulge if I could feel safe and pampered.

[MudPuppy]

If I made 10x what I currently make I would definitely spend more. I wouldn't spend 10x what I currently spend or anything but it would influence a lot of my choices. I'd buy my favorite gin instead of the acceptable mid tier version. I'd pick pineapples over bananas when I shop for fruit, etc. I would also pay someone to mow and to clean the house once a month. I'd still be saving a great % of my income than currently and retire sooner.

[Monerexia]

Over the last few years i spend right around 12% of my income and don't feel burdened in the least but this is due to the goal of saving for retirement. Once that goal is accomplished I might spend more, but then again I would probably have a tendency to work less--which of course is spending more in terms of capital (time) reallocation.

[LWYRUP]

If I hated my job, or even if I liked it but it involved really long hours or was unstable (could get fired), then not really because I would prefer to just pay off my mortgage and stuff my kids' college funds silly.

If I really liked the job and it was stable and the hours were reasonable and I just happened to make a killing (rare but it happens), then probably.

If I blew past my FIRE number to the point where the end result was going to be having a ton left over, then I would start giving money away BUT I would also start spending more liberally.  Why not?  I would try to watch my carbon footprint in my expanded spending though.

[Captain Cactus]

Short answer: 
Yes.  Yes I would.

Longer answer with some explanation:
The extra amount we spend would depend on where we stand in relation to our FI goal.  If, today, I suddenly went from making $150,000/year to $500,000/year I think that I would simply feed the taxable brokerage account until FI.  From there I would continue accumulating cash and then pay off the mortgage (gasp!!!).  Then, if I was still inclined to work, I would accumulate enough cash to purchase either the place in the White Mountains or on the coast of Maine that I've been lusting after.  Of course at this point our cost of living would increase having the 2nd home, so we'd either sell our current residence and make the vacation home the primary residence (quitting the high paying job along the way...) or continue to grow the stach 'til it's big enough to account for the increased cost of living.

PS...How does one get a job that pays $500K/year?  I've heard that it's possible, but I just don't know who makes that kind of money without a medical degree.  I'm in medical sales...where do I go from here?!

[Loren Ver]

Well, looking at our historical evidence in the Ver household, once we got out of the really low incomes (where we could afford for DH to eat named brand Cheerios) every time we had an increase in income we increase our investments to shorten our working years.  Every time.  Every-single-time.  Usually by more than the increase in income too.  Usually up to the next five or tens place percent of income.  It was ridiculous, but that is what we did.  We kept our dollar amount mostly the same, or even dropped it a little as we got more efficient or paid of student loans, but kept hiking up the investing.  I really should complain to the person in charge of the budget, but I'm that person and I don't take criticism well :D.

So if we were unFIRED and starting over making 500k/yr, we would be done in like two or three years instead of 14. 

I could say we would increase our spending, and maybe we would, but based on our history, that might not be the case.  We have an aversion to things that have high reoccurring costs, and that keeps overall costs pretty low. 

[MaybeBabyMustache]

Short answer: 
Yes.  Yes I would.

Longer answer with some explanation:
The extra amount we spend would depend on where we stand in relation to our FI goal.  If, today, I suddenly went from making $150,000/year to $500,000/year I think that I would simply feed the taxable brokerage account until FI.  From there I would continue accumulating cash and then pay off the mortgage (gasp!!!).  Then, if I was still inclined to work, I would accumulate enough cash to purchase either the place in the White Mountains or on the coast of Maine that I've been lusting after.  Of course at this point our cost of living would increase having the 2nd home, so we'd either sell our current residence and make the vacation home the primary residence (quitting the high paying job along the way...) or continue to grow the stach 'til it's big enough to account for the increased cost of living.

PS...How does one get a job that pays $500K/year?  I've heard that it's possible, but I just don't know who makes that kind of money without a medical degree.  I'm in medical sales...where do I go from here?!

There are specialized job in tech that pay this much, particularly if you have significant experience & leadership to go with it. Of course, many of those jobs are in the bay area, which is $$$$

To answer the bigger question, we moved to a VHCOL (bay area) for two very lucrative jobs. We are now paying: state income tax, crazy property tax, and crazy bay area housing prices. So, we certainly spend more than we did when we lived in Seattle. But, we're making more than double, so the math plays out. We didn't double our spending, and our saving rate has gone up substantially.

[SimpleCycle]

Money is a tool to achieve goals, so it depends entirely on what your goals are.  The difference when you earn more money is that goals are less often in conflict.  For example, we want to raise our kids in a house with a yard, and we also want to retire early.  Because of our high incomes, we will be able to do both.

That said, above a certain threshold, 100% of our increases in income have gone into investments.  Everyone defines "enough" for themselves, but once you are there, the happiness return to additional spending is just not there.

[PMG]

I would want to increase my generosity. 

I would like to buy more ethically sourced clothing and food.  I do a lot of second hand shopping to make that happen now, and I would want to continue that regardless of income, but I would  also increase my budget in the “must buy new” areas. 

Might spend more on travel as well. We’ve done a lot of cheap short term rentals.  I wouldn’t want to go luxury, but I’m ready for some not quite as cheap lodging. 

As another poster suggested, I’d work less.  Maybe not right away.  We still have a lot of saving we need to do, but I’d look forward to working less, having more safety net, and providing more safety net to others as well.

[Captain Cactus]

Short answer: 
Yes.  Yes I would.

Longer answer with some explanation:
The extra amount we spend would depend on where we stand in relation to our FI goal.  If, today, I suddenly went from making $150,000/year to $500,000/year I think that I would simply feed the taxable brokerage account until FI.  From there I would continue accumulating cash and then pay off the mortgage (gasp!!!).  Then, if I was still inclined to work, I would accumulate enough cash to purchase either the place in the White Mountains or on the coast of Maine that I've been lusting after.  Of course at this point our cost of living would increase having the 2nd home, so we'd either sell our current residence and make the vacation home the primary residence (quitting the high paying job along the way...) or continue to grow the stach 'til it's big enough to account for the increased cost of living.

PS...How does one get a job that pays $500K/year?  I've heard that it's possible, but I just don't know who makes that kind of money without a medical degree.  I'm in medical sales...where do I go from here?!

There are specialized job in tech that pay this much, particularly if you have significant experience & leadership to go with it. Of course, many of those jobs are in the bay area, which is $$$$

To answer the bigger question, we moved to a VHCOL (bay area) for two very lucrative jobs. We are now paying: state income tax, crazy property tax, and crazy bay area housing prices. So, we certainly spend more than we did when we lived in Seattle. But, we're making more than double, so the math plays out. We didn't double our spending, and our saving rate has gone up substantially.

Ah yes, I guess that makes sense.  I'm afraid that I've pretty much hit the pinnacle in medical sales while still keeping a decent quality of life in Connecticut.  Moving to San Fran is not an option and I don't have specialized tech experience. 

That thought experiment was fun...guess I gotta just keep up with my original plan! 

[LWYRUP]

PS...How does one get a job that pays $500K/year?  I've heard that it's possible, but I just don't know who makes that kind of money without a medical degree.  I'm in medical sales...where do I go from here?!

I work in commercial real estate and there are a ton of people who make that.  I probably talk to someone that makes that at some point every day.  Attorneys, brokers, developers, high-level accountants, contractors, insurance, etc.  (We are talking big insurance policies.) 

I do not though.  The much trickier part, at least as an attorney, is finding a job that pays $500k that is not soul-suckingly awful.  They exist, and if I get one I'll be over the moon, but I'll pick my current non-awful normal job over one of those awful ones.  (See, e.g., that I have the time to post this at 3:15pm on a Thursday and that I'll be shutting down my computer shortly after 5pm). 

[Captain Cactus]

PS...How does one get a job that pays $500K/year?  I've heard that it's possible, but I just don't know who makes that kind of money without a medical degree.  I'm in medical sales...where do I go from here?!

I work in commercial real estate and there are a ton of people who make that.  I probably talk to someone that makes that at some point every day.  Attorneys, brokers, developers, high-level accountants, contractors, insurance, etc.  (We are talking big insurance policies.) 

I do not though.  The much trickier part, at least as an attorney, is finding a job that pays $500k that is not soul-suckingly awful.  They exist, and if I get one I'll be over the moon, but I'll pick my current non-awful normal job over one of those awful ones.  (See, e.g., that I have the time to post this at 3:15pm on a Thursday and that I'll be shutting down my computer shortly after 5pm).

I have some distant relatives that worked as commercial real estate brokers in California and they made a ton of money..."they had the kind of house God would live in if he had the money" as the saying goes.  They donated money to a hospital and have a wing named after them... that kind of thing. 

[JLee]

I'm sure I would -- I'd do a lot of my house projects faster instead of trickling them out over a couple of years.

[LWYRUP]

PS...How does one get a job that pays $500K/year?  I've heard that it's possible, but I just don't know who makes that kind of money without a medical degree.  I'm in medical sales...where do I go from here?!

I work in commercial real estate and there are a ton of people who make that.  I probably talk to someone that makes that at some point every day.  Attorneys, brokers, developers, high-level accountants, contractors, insurance, etc.  (We are talking big insurance policies.) 

I do not though.  The much trickier part, at least as an attorney, is finding a job that pays $500k that is not soul-suckingly awful.  They exist, and if I get one I'll be over the moon, but I'll pick my current non-awful normal job over one of those awful ones.  (See, e.g., that I have the time to post this at 3:15pm on a Thursday and that I'll be shutting down my computer shortly after 5pm).

I have some distant relatives that worked as commercial real estate brokers in California and they made a ton of money..."they had the kind of house God would live in if he had the money" as the saying goes.  They donated money to a hospital and have a wing named after them... that kind of thing.

I have never seen people make so much money so easily as high-end commercial real estate brokers.  From my standpoint as an attorney, they don't actually seem to ... know anything.  But yet they make multiples of me with less education, so whose the idiot now, lol. 

I think it's intensely competitive and you need the right personality.  You need to have 100 people slam a door in your face and still go out with a big shit eating grin and knock on 100 more (really rich people's) doors. 

I don't think it's easy to do or to be good at.  But if you have a certain personality, man can you make a killing (and without being a rocket scientist or even appearing to work too hard). 

[Captain Cactus]

PS...How does one get a job that pays $500K/year?  I've heard that it's possible, but I just don't know who makes that kind of money without a medical degree.  I'm in medical sales...where do I go from here?!

I work in commercial real estate and there are a ton of people who make that.  I probably talk to someone that makes that at some point every day.  Attorneys, brokers, developers, high-level accountants, contractors, insurance, etc.  (We are talking big insurance policies.) 

I do not though.  The much trickier part, at least as an attorney, is finding a job that pays $500k that is not soul-suckingly awful.  They exist, and if I get one I'll be over the moon, but I'll pick my current non-awful normal job over one of those awful ones.  (See, e.g., that I have the time to post this at 3:15pm on a Thursday and that I'll be shutting down my computer shortly after 5pm).

I have some distant relatives that worked as commercial real estate brokers in California and they made a ton of money..."they had the kind of house God would live in if he had the money" as the saying goes.  They donated money to a hospital and have a wing named after them... that kind of thing.

I have never seen people make so much money so easily as high-end commercial real estate brokers.  From my standpoint as an attorney, they don't actually seem to ... know anything.  But yet they make multiples of me with less education, so whose the idiot now, lol. 

I think it's intensely competitive and you need the right personality.  You need to have 100 people slam a door in your face and still go out with a big shit eating grin and knock on 100 more (really rich people's) doors. 

I don't think it's easy to do or to be good at.  But if you have a certain personality, man can you make a killing (and without being a rocket scientist or even appearing to work too hard).

It's fascinating really... when you're a kid "you don't know what you don't know" have no idea of the opportunities out there that could be a good fit... unless you're the exception and seek out info on your own or have a family member or mentor guiding you along... you're left to the influence of high school guidance counselors who funnel kids into the industrial university system complex and into the cycle of student loan/wage slavery. 

[Car Jack]

If I ignore college costs, my wife and I have spent about $50k a year for decades.  For 2020, we'll probably make $225k or so.  We started out graduating from college and going to work and for a full decade, we lived like we did as students paying their way through college, which we both did.  As much as I'd love to go order a yellow Porsche 718 Cayman GT4 with a proper manual transmission, it would hurt and I would not be happy paying out a hundred grand to do it.  Even though at the low of Corona, my investments were down three times that amount.

I've projected my retirement spending for someday when I retire and assuming no job, the total comes to $63k, assuming health insurance costs skyrocket and that we spend thousands more on travel.

If I received a several hundred thousand dollar windfall, sure, I'd consider diverting a hundred k over to buy the Porsche.  With the occasional 3% raise that comes every few years?  Nope.

[American GenX]

I wouldn't spend more.  I switched jobs earlier in my career and within short order, I was making double what I had been.  I had to move, and my new house was more expensive, but that's about it.  I even kept the same car for another 5 1/2 years.  No change in dining out or other discretionary spending.  In fact, my discretionary has probbly never been lower than the last few years, when my wages and savings are at their peak.

[mizzourah2006]

We've seen our HH income grow from ~85k to ~$285k since 2013 and we probably spend about as much as we did then, between $55-$70k/yr. Of course we switched car payments and student loans with daycare for 2 :) Now I will say I'm starting to get a little more lenient in expenses,now that we are about a year from our lean FI goal and ~4 years from our FI goal and we have no plans to actually RE, but like others have said we just don't really see the need to spend more money. We're largely happy with what we have.

[MrThatsDifferent]

Funnily, I make a ton more than I used to and spend a ton less. The reason? I used to be like OP’s friend and spend everything I made (with nothing to show from it). Now I’m budgeting, saving and investing. If I was making double what I make now, what would I do differently? Well, I’d probably pull the trigger and buy property and probably get a car (which I would use maybe for 4 hours a week max). Or I would just keep doing what I’m doing and reach FIRE faster. I can afford a lot more right now but have worked out, I really don’t need those things, cause if I did, I’d have them.

[use2betrix]

I spend much more freely when I make a lot more (I’m a contractor), however I do aim to keep my fixed expenses very similar to if I was FIRE’d or unemployed.

5 years ago when I was making around $130k/yr, I was spending about $5k/mo on a good month.

The last couple years I’ve made around $300k-$320k, and this year will be closer to $350k. Right now, I can survive just fine off around $6000-$6500.

Of course, right now at my income I do spend way more. Not on items that add higher fixed payments, but more on discretionary stuff. We have a couple newer cars. We don’t hesitate buying top of the line items that should “last forever.” I.e. a Vitamix blender, luggage with a lifetime warranty, nice tools, home gym equipment, travel, nicer clothes, etc. I’m buying things now that should last well into FIRE. The expensive things I want to buy aren’t conducive to the amount I move for work i.e. items I don’t want to move a lot (high end stereo, guitar/amp, high end welding machine). Those will be purchased whenever we someday buy a home.

I do keep myself in a position where if my income was even cut and half, I could still save 50% of that amount if I wanted to.

[PDXTabs]

If you were making, say $500k/yr, would you still save the same percentage of your salary or would you allow for lifestyle inflation? How would you think differently about money or not?

Yes, both. If I made that much I could afford to pay for my kids to go to fancy colleges and increase my savings rate. I could also feel comfortable buying more real-estate which I view less as an investment and more as a hedge or indulgence.

[mountain mustache]

I would selectively spend more in a few categories. Right now I make $40k a year, so my spending is really low to keep the savings rate that I want. If I made say...$80k+ a year, I would spend more on food...I would buy all organic and local produce and meat, and shop at the small co-op in my city instead of the big chain grocery stores. Right now I spend $250 a month on food, and I would probably increase it to $400-$500 because I love cooking and it would be so fun to just buy all of the ingredients I want, without worrying about a tight budget.
I would also buy more new ethical clothing, like a few pieces a year...instead of thrifting for 100% of my clothing.

I would keep my old used car, and my cheap apartment...but I'd probably not defer every single small purchase I want to make, and just get things as I need them (household supplies, kitchen tools, etc).

I imagine this would increase my monthly spending from $1350 a month to about $1800 a month, which sounds pretty nice to me!

ETA: I forgot a big one for me...I would totally hire someone to clean my apartment. I have chronic back pain, and if I never have to mop/scrub the floor again it would be the biggest gift. To have someone scrub my apartment twice a month would be totally worth the lifestyle inflation.

[renata ricotta]

For a few years I made north of $250k, topping off around $400k. I did spend a lot more (but I also saved a lot more, both in absolute dollars and percentage).

It just felt like I was more than hitting my savings and donating benchmarks, and there were things I would enjoy to have and do (but could be cut out if it wasn't easy to pay for them). Mostly related to travel, dining, clothing, and some electronics and furniture. But, I tried not to get used to them as the new normal, which mainly meant not baking them into my lifestyle long term via a mortgage/expensive lease/car payment. When I switched to a lower-paying job I cut those things out of my spending and it's been fine. I don't regret it.

[bluebelle]

I might spend a little more, but when I think about it, $500K a year isn't enough to make a difference,when the government would be getting 53-54% of every one of those extra $.  Sad to think but $500K isn't enough to have a room full of accountants figuring out how to keep the money.   That taxation rate would snuff out my OMY tendancy.   We're very close to pulling the plug now.   Now, if you asked DH, he'd have me work an extra couple of years for extra toys.

[Junco]

I think the only spending category I would change would be my food budget.

I love to cook, it's a big hobby for me. I also like to eat healthy. I'm rather frugal with my food purchasing because having a high savings rate is important to me.

If I made more I would be more likely to buy organic  (I don't now), and some expensive ingredients that I typically avoid now.

I'd also eat out more. Restaurants are my one spending category that I feel guilty about at times. I like going out, but I know it's not worth $15-30+ dollars a person for a meal when I can make an equally good meal at home for a couple bucks. I'd like to eat out more but I limit how much I do on the path to FI.

Everything else would stay the same.

[RWD]

As much as I'd love to go order a yellow Porsche 718 Cayman GT4 with a proper manual transmission

Unless you're tracking it the 718 Cayman GTS 4.0 is the way to go. It's $13k cheaper and more comfortable but still has the same engine (slightly detuned) and manual transmission.

[Bloop Bloop]

The only significant thing that I've allowed to increase in spending as my earnings increase is my car choice. My next car will be a 540C/570S (used, 3 years old-ish)

Otherwise I live quite frugally.

Even if you include my car cost (averaged over time), I still spend less than the average Australian household, which I find to be astounding, given how little the average household earns and saves.

This is why I'm not impressed by "stimulus" measures which rely on middle-class families spending it all. I could never live with such lavish, profligate waste. Sure, if you're poor, you have to spend every penny you earn. I can't envision how or why the middle class does the same.

[Arbitrage]

PS...How does one get a job that pays $500K/year?  I've heard that it's possible, but I just don't know who makes that kind of money without a medical degree.  I'm in medical sales...where do I go from here?!

I have a friend who went from $100k/year to $1-2M/year.  Started working for a hedge fund as a quant.  Just takes some coding skills, smarts, and a heckuva lot of luck.

[js82]

As my income has risen, so has my spending - but not at the same rate as my income, and hence my savings rate has gone up.  I see no reason why this would not continue to be the case with further gains in income.  Another $1000-$1500 a month in spending would allow me quite a bit more luxury in my day-to-day life, but beyond that the return on additional spending would rapidly taper off.

Sure, I'd live in a nicer place, probably drive a newer, nicer car and take fancier vacations.  But fundamentally I'm already at the point where buying time/freedom/flexibility outweighs most of the material stuff that I could buy in terms of happiness, and with a relatively moderate further increase in income I'd reach the point of little to no happiness return on additional spending.

*obviously this trend might break at super-high income/wealth.  At some point you reach the "I/my family have everything I need, might as well send the rest on charity/trying to make the world a better place" point.

[mspym]

In the last 10 years, my income has tripled but my expenses are the same. I am at a level of spending that I am comfortable with - all necessities covered plus some treats - and after that point there is nothing I want more than being able to opt out.

[StarBright]

I am very impressed by you guys who wouldn't change your lifestyles at all. While I am thankful for the willpower to be frugal, I guess I am just naturally not that way.

I would pay someone to prep meals for me for at least a year and eat out!

We would take vacations to places that were more luxurious. We have found that places that are better fits for our very intense kids tend to pricier. So we just don't go on vacation as much now. And by luxurious I mean a few hundred a night vs. the cheapest we can find.

I would landscape my yard exactly how I wanted.

I would probably upgrade my house to have a nice separate guest suite for family (or an au pair in the current climate).

We would get hotels instead of staying with family when we visit them across the country.

I would update my car to something not slightly rusted and something that is hybrid or electric.

I'd put in a pool for my kids!

I would get weekly massages for at least a year.

I would get my hair done every 12 weeks. And get facials a few times a year.

I would buy clothes - I love clothes! And I would get a personal trainer.

All right - y'all can face punch me all over the place. But that is absolutely what I would do if I was making major bucks every year :) I found this very fun to think about actually.

[LWYRUP]

LOL, @StarBright, I won't judge you.  All those things sound great to me.  I just want to hit certain savings goals first.  If I hit them, then I am free to decide whether or not I want to continue working and pay for luxuries or not. 

I expect I will decide to work a little longer and indulge in some luxuries once the base is established.  I also expect I'll hang up my cleats before 65. 

It's all about balancing priorities to make it work for you. 

[use2betrix]

PS...How does one get a job that pays $500K/year?  I've heard that it's possible, but I just don't know who makes that kind of money without a medical degree.  I'm in medical sales...where do I go from here?!

While I don’t make $500k, I took home $152k the first 6 months this year, and got a raise in April so my second 6 months will probably be more.

I work in Oil & Gas and only have an associates degree. Most of my coworkers make pretty similar and also don’t have 4 year degrees. It’s a fast paced and stressful environments. Most people aren’t willing to make the quality of life sacrifices that it takes to get here. I spent 5 years living in a 5th wheel. Have often lived in crap hole towns, have lived in about 8 states the last 10 years and probably 15+ cities.

[I'm a red panda]

PS...How does one get a job that pays $500K/year?  I've heard that it's possible, but I just don't know who makes that kind of money without a medical degree.  I'm in medical sales...where do I go from here?!

Get really lucky on Youtube?

[mspym]

@StarBright it's no judgement from me! We have tried some pricier things and learned where we will actually get an increase in joy from an increase in spend. So we cook almost all our food, not because we are frugal but because it tastes better. It being cheaper and healthier is a nice side effect. I recently spent a week consideringl buying an Hermés handbag and then realised I would rather spend that money on getting a local tailor to make me a bunch of clothes that were crafted to me AND a local leather worker to make me a nice bag. Staying at super ritzy hotels in the UAE wasn't worth it, flying business class for long haul trips? Absolutely worth it.

[mm1970]

I spend much more freely when I make a lot more (I’m a contractor), however I do aim to keep my fixed expenses very similar to if I was FIRE’d or unemployed.

5 years ago when I was making around $130k/yr, I was spending about $5k/mo on a good month.

The last couple years I’ve made around $300k-$320k, and this year will be closer to $350k. Right now, I can survive just fine off around $6000-$6500.

Of course, right now at my income I do spend way more. Not on items that add higher fixed payments, but more on discretionary stuff. We have a couple newer cars. We don’t hesitate buying top of the line items that should “last forever.” I.e. a Vitamix blender, luggage with a lifetime warranty, nice tools, home gym equipment, travel, nicer clothes, etc. I’m buying things now that should last well into FIRE. The expensive things I want to buy aren’t conducive to the amount I move for work i.e. items I don’t want to move a lot (high end stereo, guitar/amp, high end welding machine). Those will be purchased whenever we someday buy a home.

I do keep myself in a position where if my income was even cut and half, I could still save 50% of that amount if I wanted to.

Same.  We didn't hesitate to spend money on whatever home gym equipment we could find and fit when COVID hit (namely: kettlebells.  Our house is small.)

Still paying for the YMCA though...

[KBecks]

I would spend more.  I am not sure how much, but I would have some nicer things than I do now.  I would probably get manicures and more restaurant meals.

[StarBright]

LOL, @StarBright, I won't judge you.  All those things sound great to me.  I just want to hit certain savings goals first.  If I hit them, then I am free to decide whether or not I want to continue working and pay for luxuries or not. 

I expect I will decide to work a little longer and indulge in some luxuries once the base is established.  I also expect I'll hang up my cleats before 65. 

It's all about balancing priorities to make it work for you.

Yeah - we actually do none of these things - but I would love to do them!

I think because I am a person who knows I like luxuries (from a previous, richer, pre-great recession life) - I'm always shocked when people on this board are legitimately not into that sort of stuff.

I would spend more.  I am not sure how much, but I would have some nicer things than I do now.  I would probably get manicures and more restaurant meals.

I totally forgot pedicures! Yes - on the regular! And I would pay good money so that I knew the person giving them was not being exploited.

[TheFrenchCat]

I'd probably spend more on more durable things.  I'd build a slightly larger and fancier house with my dream kitchen.  I'd probably buy newer cars from a dealership instead of 10 year old ones.  And I'd probably replace my electronics at the first sign of breaking down instead of limping them along for as long as I can.   And I'd probably travel more, though still simply.  I enjoy staying in hostels/convents since I feel like I meet more people that way.  But I can't see my day to day spending increasing that much.  I feel pretty content as is.

[Monerexia]

PS...How does one get a job that pays $500K/year?  I've heard that it's possible, but I just don't know who makes that kind of money without a medical degree.  I'm in medical sales...where do I go from here?!

Get really lucky on Youtube?

And as the old saying goes, if you have to ask...

[ender]

<checks spending this year>

I guess that yes I would spend more if I got a big raise. Then again, we bought a new house, so it's hard to know how much of the new spending was directly correlated to a new house vs just general increased spending.

[2sk22]

Our household income has gone way up in recent years as both my wife (especially) and I have been given big raises. Our spending however has definitely not gone up significantly. Neither of us can think of anything big that we really want or need. If anything, we have been getting rid of stuff as we try to declutter our house.