When to Save More; when to Earn More

Simple primary school math.

If a person "only" needs $50K per year to be financially free, then all he/she needs is to save $50K per year for 20 years. One million dollars invested with "conservative" 5% yield will provide $50K for life! 

(Don't too serious. Pretend pretend as example only. Of course life is not a straight line extrapolation!)

Start work at 25? Then can retire early at 45! Easy peasy! Just through save more only!!!

But if married and husband or wife stay at home never work (you did choose him/her remember?), then we either have to save $100K for 20 years or $50K for 40 years.

Start work at 25, retire financially free at 65 by saving $50K per year. Just nice can collect "bonus" CPF Life payouts too! (See? Life is good if CPF is a smaller portion of our networth!)

Again, just through save more only! Look! Anyone and everyone can do it!!!

That's until the rubber hits the road...

When you realise you earn less than $100K per year...

Those who earn more than $100K per year can focus on save more.

Earn less than $100K per year?

Perhaps that's why so many are willing to pay thousands of dollars for workshops and courses to learn how to EARN MORE!?

Those who pay to learn how to save more I don't know what to say... Can't figure things out for themselves?

Now you know why even at 80 or 90 years young, so many HDB heartlanders still queue to buy Toto!

Trust but verify

Just look at your relatives, neighbours, classmates who were not so well off when you were young, but have now became much wealthier than you...

How did they do it?

1)   Doing sales with high commissions or corportate careers that give big bonuses when they achieve (institutional traders, investment bankers, jobs with abcs as titles like CEOs, CFOs, COOs; etc)?

2)   Being their own boss by starting their own businesses?

3)   Marry rich or marry lucky as in the husband or wife dirt poor when marry, but later became examples 1 or 2 above? 

4)   Made serious money through speculation in properties or equities?

5)   Struck Toto or Big Sweep? I think this can put in same category as marry lucky?

6)   Of course I've not forgotten this last one. Study hard to become doctors or lawyers? 

When we say we got "lucky" in financial matters, do we associate it with earn more or save more?

Does anyone know of anyone, any company, or any country that achieved prosperity through austerity?

I know what you going to say. 

You've read stories of people frugal frugal saved $1 million dollars in 10 years and became financially free at age 35.

Friend, using 100% savings rate (you parasite on parents), to save $1 million in 10 years, you have to earn how much a year?

Your mom dropped you when you were a baby right?