To start, raising your income is far more important than cutting your spending when growing your wealth. Spending definitely matters, but without sufficient income it is far too difficult to succeed.
Consider this: from 1980-2005 the S&P 500 compounded at ~9.2% a year (post inflation + div). Even if you underperformed by 2% a year, YOU KILLED IT.
But, start one decade earlier (1970) and the market only compounded at 5% annually for the next 25 years.
I’ve written on this before and illustrated it with a simple simulation here: ofdollarsanddata.com/why-winners-ke…
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