How much money do you need to live? $15k a year? How much can you generate: 30k a year? You're set.
This isn't talking about being wealthy - it's about considering alternatives and making good choices - if you can make more than $20k a year.
This isn't talking about being wealthy - it's about considering alternatives and making good choices - if you can make more than $20k a year.
That's like saying win the lottery. Sure, it could work, but it's a lot of risk and does not scale.
Kids are a choice - but even with kids one can still live frugally or prepared. For example, choosing to not have a child until you've accumulated enough savings to cover all of the extra surprise costs that can occur that most people don't plan for when having a child.
My father worked two jobs to barely make ends meet for 8 years because his financial planning revolved around a family plan that he didn't actually plan for. My family plans are actually planned and revolve around my financial plans. One problem I see people make is that their financial plans revolve around their family plans (or lack thereof).
No surprise child at 18 years of age. No poorly-planned "I think I'm ready but I'm not actually ready" child at 21-23 either. I've seen very, very, very few parents under the age of 25 that a) planned for their child and more importantly b) properly planned for their child.
Lack of planning - or having a poorly crafted plan is what is "risky" or "doesn't scale".
In fact in TFA he says he has a kid.
fixed that for you :)
it's a lot of risk
If something happens then finding a good job when your older and have not worked for a while is hard. So, IMO your better off trying to get a significantly larger nest egg than you think you need. That way compound interst works for you and you don't risk poverty while your old.
That $15k figure includes healthcare paid for and its very possible for a family to raise children on less than $30k combined. Choosing your partner wisely? That's important.
I don't understand your incredulity. People have lived and self-actualized on less than the $15k/yr equivalent forever - when did it become impossible? And why do you think so?
Dave Ramsey says, "Live like no one else, so you can live like no one else." He means, save aggressively and retire comfortably. I was already living like no one else: no car, no concerts, rarely seeing movies or eating out, no fancy clothes, avoiding doctors, less than $15 cell phone plan. And my expenses still exceeded my income. It is not so simple and easy for everyone to have savings.