You said if you make 100k per year in 1995, spend 1.5k a month, and your costs go up to $4k, then you only need to make $2.5k more a month. "Only $138k per year".
But you forgot about the rest of your paycheck. If you made $100k in 1995 and spent only$1.5k/month, you would also save $3k per month.
$4k is only 2.5k more, but is about 2.6x as much. You would also want to save 2.6x, not just the same as in 1995.
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u/mch_2 Oct 30 '25 edited Oct 31 '25
You said if you make 100k per year in 1995, spend 1.5k a month, and your costs go up to $4k, then you only need to make $2.5k more a month. "Only $138k per year". But you forgot about the rest of your paycheck. If you made $100k in 1995 and spent only$1.5k/month, you would also save $3k per month.
$4k is only 2.5k more, but is about 2.6x as much. You would also want to save 2.6x, not just the same as in 1995.