[ryandrake]

I think it takes a bit of a mindset shift. If your salary is $X, you can't start your expense plan with how much your apartment costs. There are expenses A. that are ironclad-mandatory, in that you must make them or you're really fucking yourself: Taxes and debt interest are examples. They need to come out of your salary before any other calculations are done. Your actual income (that you can spend) is $X-A. Then you have B. expenses that you have to pay, but you have at least theoretical control of by shopping around, like the cost of your apartment, cars, child care, groceries, and so on. Those come out next. Then, you have C. discretionary spending, everything left over. Often this is zero or negative :(

Too many people put retirement savings in bucket C, where it actually should be considered bucket A. It needs to come out before you even consider anything else. Your money left over after taxes, paying interest, AND savings, is what you have left to decide whether you can afford this apartment or that car.

[Volundr]

I think there are a lot of people for whom this is true, but also a lot of people for whom this is terrible advice. Your not likely to reach retirement age if you take your retirement savings out before your apartment or food and wind up evicted or starving.

[wakawaka28]

No, but if doing that leads people to conclude that they need to move in with roommates, that might be preferable. Roommates are certainly a great way to reduce expenses. It has downsides but it is what many poor people in other countries do naturally.

[Izkata]

Roommates, or if you're just getting started what I did could be reasonable, live with parents for a bit longer. Saved quite a lot in a year since they didn't have me pay rent, and got my first raise right around when I moved out.

And on GGP's mindset shift: Right away I put what my parents thought was an unusually high percent into my 401k, with the reasoning that if I never saw it then I'll never miss it. And it worked. I only see the amount that actually goes into my bank account and have managed all my costs based on that.

[wakawaka28]

I wish I had done that automatic contribution years ago at my first couple of jobs. I thought it didn't matter and I could hardly afford it, and I would make a lot more in subsequent years. In a way I was right but my lifestyle could have been better, cheaper, and healthier. Spending more money didn't help my social life like I thought it would.