At the start of my career I comitted to diverting half of any raise to saving/investing. The idea is I still enjoy an increasing standard of living but also build retirement savings.
One thing I learned more recently that makes this strategy much more powerful than I knew is we as humans are goldfish. We will adjust our standard of living to our income. By saving more up front you limit that inevitable behavioral increase. This makes a successful retirement or even an early retirement much more attainable because you're not adjusted to a higher SOL. Also because my SOL is still increasing I'm just as happy, what I'm "missing" is only noticable if I would have tatsed it then tried to save.
This was all my personal conjecture, it was very cool to hear David Blanchett with a PhD and career studying ths topic arrive at the same recommendation. It works!
Rational reminder episode where David Blanchett covers this topic: https://castbox.fm/vb/356522706
Submitted April 30, 2021 at 11:56AM by fat_tire_fanatic https://ift.tt/2Rg3Jh3
