I can see you are not too flexible in your thoughts about how to spend money so lets do it your way and use you numbers in the post.KlangFool wrote: ↑Thu Mar 14, 2019 1:09 pmsmitcat,smitcat wrote: ↑Thu Mar 14, 2019 12:54 pmKlangFool wrote: ↑Thu Mar 14, 2019 12:32 pmsmitcat,smitcat wrote: ↑Thu Mar 14, 2019 12:26 pmRenting or mortgage paid off which is typically what we are speaking about:
- the person in the HCOL area and higher expenses has many choices.
- the person in the LCOL area and lower expenses has fewer choices.
<<- the person in the HCOL area and higher expenses has many choices.>>
I disagreed. Once a person overspends on a house and the person is stuck on a big expensive mortgage, the choice is gone. By the way, in my area, the house has not recovered to the 2004/2005 level. So, counting on the house appreciation is not possible either.
You have now limited the discussion of FIRE to only home owners.
- you have arbitrarily assigned all overspending to mortgage costs ….if you take that very narrow view you would be correct.
- most folks at any income level have not saved enough for retirement, that data is clear.
- on this thread we are speaking about the minor subset of those that have saved.
The world is much larger than your immediate area and peers.
Show me some real example and observation of folks spending 120K per year that is not homeowners. Where do they spend their money? As per my observations across my friends and families, it is always about the house.
- Person "A" buys a home too expensive at say 40% of income and has $60K total expenses , home costs = $24K per year / all other costs = $36K
- Person "B" buys a home too expensive at say 40% of income and has $120K total expenses , home costs = $$48K per year / all other costs = $72K
Which person has the ability to easily cut costs by any means including but not limited to selling the home?