Comments on: How to disconnect how much you earn from how much you can spend … http://7million7years.com/2008/09/05/how-to-disconnect-how-much-you-earn-from-how-much-you-can-spend/ How to make 7 million in 7 years ... Thu, 24 May 2012 09:20:05 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: AJC http://7million7years.com/2008/09/05/how-to-disconnect-how-much-you-earn-from-how-much-you-can-spend/comment-page-1/#comment-1675 AJC Sat, 06 Sep 2008 17:34:49 +0000 http://7million7years.wordpress.com/?p=433#comment-1675 @ Gryffindor - I can tell you from personal experience that it's much easier to START with a savings mindset (which is why the college kids reading this blog have a HUGE advantage) than winding BACK your spending to create a savings mindset ... start early and stay the course ... even though, we will be layering getting rich(er) quick(er) strategies on top that will help us get to our Number/Date combo. ... strategies that, as you say, your family/friends WON'T understand! @ Gryffindor – I can tell you from personal experience that it’s much easier to START with a savings mindset (which is why the college kids reading this blog have a HUGE advantage) than winding BACK your spending to create a savings mindset … start early and stay the course … even though, we will be layering getting rich(er) quick(er) strategies on top that will help us get to our Number/Date combo. … strategies that, as you say, your family/friends WON’T understand!

]]> By: Gryffindor http://7million7years.com/2008/09/05/how-to-disconnect-how-much-you-earn-from-how-much-you-can-spend/comment-page-1/#comment-1676 Gryffindor Sat, 06 Sep 2008 16:57:24 +0000 http://7million7years.wordpress.com/?p=433#comment-1676 Mark Ford's targets for savings are a great guideline. It all depends on your mindset. If you stick to those guidelines you will not be spending "like the Jones". So there won't be any external reinforcement except seeing your balance sheet improve. Most of the people surrounding you (family, friends, spouse) probably think that's a better goal than getting to the Number. And its also really darn easy to get used to that better lifestyle . . My personal estimation is that probably less than 10% of people who are making above 150k are able to stick to these targets because of "reference spending". Would be interesting to see some real data on this. Mark Ford’s targets for savings are a great guideline.

It all depends on your mindset. If you stick to those guidelines you will not be spending “like the Jones”. So there won’t be any external reinforcement except seeing your balance sheet improve. Most of the people surrounding you (family, friends, spouse) probably think that’s a better goal than getting to the Number.

And its also really darn easy to get used to that better lifestyle . .

My personal estimation is that probably less than 10% of people who are making above 150k are able to stick to these targets because of “reference spending”. Would be interesting to see some real data on this.

]]> By: AJC http://7million7years.com/2008/09/05/how-to-disconnect-how-much-you-earn-from-how-much-you-can-spend/comment-page-1/#comment-1678 AJC Fri, 05 Sep 2008 21:56:26 +0000 http://7million7years.wordpress.com/?p=433#comment-1678 @ Scott - I'll repeat what you just said because it is SO important: "It’s much easier to cap spending than it is to scale it back once you have already lived a higher lifestyle" ... ... once dem worms are out'a da can, you jus' cain't get 'em back in again! :) @ Scott – I’ll repeat what you just said because it is SO important: “It’s much easier to cap spending than it is to scale it back once you have already lived a higher lifestyle” …

… once dem worms are out’a da can, you jus’ cain’t get ‘em back in again! :)

]]> By: Scott http://7million7years.com/2008/09/05/how-to-disconnect-how-much-you-earn-from-how-much-you-can-spend/comment-page-1/#comment-1677 Scott Fri, 05 Sep 2008 19:40:13 +0000 http://7million7years.wordpress.com/?p=433#comment-1677 This is the guideline I used for my wife and I when starting out together a few years ago and it has actually worked pretty well. Although, I've capped out our living expenses along the way even though we began rising more and more in income, because I want us to save even more than the percentages that he lists. I just feel that if you can cap the lifestyle early enough and feel content with it, then you can accelerate your money making 101 and 201 a little faster. It's much easier to cap spending than it is to scale it back once you have already lived a higher lifestyle ;) This is the guideline I used for my wife and I when starting out together a few years ago and it has actually worked pretty well. Although, I’ve capped out our living expenses along the way even though we began rising more and more in income, because I want us to save even more than the percentages that he lists.

I just feel that if you can cap the lifestyle early enough and feel content with it, then you can accelerate your money making 101 and 201 a little faster. It’s much easier to cap spending than it is to scale it back once you have already lived a higher lifestyle ;)

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