[solatic]

A lot of people are often surprised at how non-frugal their lifestyles are. I'm not suggesting that people living on $50k/year aren't already frugal, but yeah, there's definitely people who take out car loans, take out mortgages for the full amount they were approved for, and all sorts of random things like buying chicken parts instead of whole chickens, buying small grocery store containers instead of bulk pricing for shelf-stable items, keeping your speed down to save gas, etc.

You really just need to build an innate understanding that the hedonic treadmill doesn't make you happier long-term and develop a resolution to get your expenses down and stay disciplined about it.

[raw_anon_1111]

But also you see people asking why can’t someone making the median wage - $75K a year - max out there 401K at $23500 and their HSA at $8300, etc

[solatic]

There are three things you can do with your money - save it (e.g. investments), give it away (e.g. charity), or spend it (e.g. housing, vacations). Whether or not somebody's investment strategy (i.e. saving) is optimal for their income level has nothing to do with the frugality of their lifestyle (i.e. spending).

[raw_anon_1111]

So you are saying when I first graduated from college in 1996 I should have been able to max out my 401K - then it was $10K I believe. I was making $22K.

If the median income is $70k a year, after taxes they should be able to save $23500 a year and have an HSA compatible healthcare plan and max out their HSA?

[solatic]

I have no idea how you got that from my comment. How much you make, how much you save, how much you spend, and how much you give away are all independent, and neither is it a zero-sum pie (for example, sometimes investments go down in value, and sometimes the line between giving away and spending is blurry).

To answer your question directly, $70k income is independent of the cost of living in high cost of living cities (like NYC or SF) vs. low cost of living areas. If you make $70k/year in NYC, no you don't have the spare income to max out 401k/HSA. If you make $70k/year working for Walmart in Bentonville, Arkansas, then yeah, I expect that you ought to be able to max them out.