Good evening Mr. Collier,
I hope life is treating you well. When you get a moment could you please answer the below question?
Thank you for your time!
What’s a good rule of thumb on the amount of money to live on?
Answer #1: 80% of what you make! Invest 10%, Save 10%.
Answer #2: Live on as little as possible! Make a game out of thrift! This is particularly true when you are starting out and building your nest egg/your financial citadel or if you’ve got a viable business you are building.
When I graduated college, I realized I was content living the financial life of a student and so I deliberately did not upgrade my lifestyle (new car/wardrobe/upscale housing/toys) to match my new income and used the savings to help fund my first investments.
By save I mean where your primary (but not sole) goal is safety while with investing your primary (but far from exclusive) goal is return; liquidity should be a consideration in both cases i.e. stay away from closed in funds.
“Enjoy pleasant pleasures in such a way as not to injure future pleasures.” – Seneca the Younger, fully Lucius Annaeus Seneca, 4 BC – 62 anno Domini
As always, I share what I most want and need to learn. – Nathan S. Collier