@bikerbabe wrote:
Please keep in mind that one lost job, one major recession, one real estate collapse, can blow that nice retirement nest egg out of the water. Don’t assume that someone doesn’t have a substantial retirement fund because they were not frugal.
Good point!
And I think many people don't realize that some hard working people never do make enough to get too far ahead of the 8 ball. They save, they plan, but live so close to the wire because of low wages, that something is always cropping up to take the savings.
Many have no retirement plans at work, and even when they fund their own, have things happen that prevent them from contributing for periods of time and/or dipping in for health issues or to keep their heads above water during job losses etc.
It is really easy to say that we should 'live below our means', but it really is dependent on what your means actually are.
For a good part of my young adult life, I lived paycheck to paycheck to 'invest' in things for my future like affording to buy a very modest first home (it was considerably less than renting), have a good life insurance policy, continue my education etc. For many who never get financial assistance from their parents past high school, who never inherit money or property or businesses, who never work in fields that pay well (but love what they do), living 'below their means' would mean not living at all sometimes.
I like the idea of living below my means as a smart financial decision. But the reality of people being able to do it and still have a quality of life in decent housing, decent health care, decent food etc. makes the idea unachievable for many.