Reading lingyi’s thread on what you do with an extra $10-$15 a day, and several people’s responses regarding not having any extra disposable income, to splurge on things like coffee, cigarettes, lunch splurging, etc. made me wonder at what income level do most people feel they need to be at to not have those types of financial worries.
I remember early in my career living pretty much paycheck to paycheck. After rent, car payment, 401k savings, health benefits, groceries, utilities, etc. that there was not much left over for entertainment, travel, etc.
As my career progressed, and I got raises and promotions, and the cost of living stayed relatively flat (only modest increase in rent, groceries, utilities) my disposable income did increase, but was offset by having kids, and then eventually offset by buying a house, which resulted in a draw back on disposable income. This was primarily due to my own decisions to increase the quality of my own lifestyle, through home ownership and newer cars from time to time.
I’m at a point in my life, where my costs of living have continued to stay relatively flat while my earnings continue to increase…so each year those financial worries have lessened.
What amount or % of income increase per year would you need for you to no longer have financial worries?