[lobe]

The problem with that argument is that not everyone is OK with living a bare minimum cost of living life style. Also rewarding yourself for earning more can give you motivation to progress further.

I recommend fixing your spending at a %-age of your post tax income at a maximum. For me it is 50%, but that is on the conservative side for most people. I don't always spend 50%, but that is the max. I feel it is a good compromise between preparing for the future and rewarding yourself in the present

[jasonkester]

$20K was just an example. You can fix your acceptable living costs at $50k/year if you like, so long as you know that that will always be a tiny fraction of your income, regardless of how life evolves. The important thing is to not set it to a percent of your current income.

Keep them decoupled. That's the important thing.