That’s why my own approach is “FIRE [Financial Independence, Retire Early] first”. In which one first plans for a frugal retirement (which, for the USA, requires way less than $1M, possibly less than half of that, so it’s highly achievable, and mainly depends on the strength of your frugal muscles, not your above-average earning power). That takes about 7 to 10 years, which can be shortened to 5 if you work hard or are lucky. That amount is than set apart in case your life takes a wrong left turn.
Then you keep working, and either donate everything (since you’re already set for life), or at least as high of a percentage you’re comfortable with.
You have to consider, e.g. the cost of raising kids, since the amount planned for a 50+ years retirement won’t have those expenses considered (in the long run, they are “temporary”)
Plus the general category of “thriving”, since if you are optimizing for effectiveness you’re likely not optimizing for minimum absolute cost. That’s why I’m not just linking Jacob Lund Fisker and telling you $7000/year is enough (and mind, he’s kept up at least until most recent update in 2019)
As for Average Joe… most limiting resource isn’t money at all, but willpower and other cognitive powers. Fortunately, it’s not like the Average Joe is EA or vice versa.
In any case, consider that my answer of “how much to put into your own financial security vs. donating”. Not in terms of splitting a wage, but of bypassing the question entirely.
That’s why my own approach is “FIRE [Financial Independence, Retire Early] first”. In which one first plans for a frugal retirement (which, for the USA, requires way less than $1M, possibly less than half of that, so it’s highly achievable, and mainly depends on the strength of your frugal muscles, not your above-average earning power). That takes about 7 to 10 years, which can be shortened to 5 if you work hard or are lucky. That amount is than set apart in case your life takes a wrong left turn.
Then you keep working, and either donate everything (since you’re already set for life), or at least as high of a percentage you’re comfortable with.
You have to consider, e.g. the cost of raising kids, since the amount planned for a 50+ years retirement won’t have those expenses considered (in the long run, they are “temporary”)
Plus the general category of “thriving”, since if you are optimizing for effectiveness you’re likely not optimizing for minimum absolute cost. That’s why I’m not just linking Jacob Lund Fisker and telling you $7000/year is enough (and mind, he’s kept up at least until most recent update in 2019)
As for Average Joe… most limiting resource isn’t money at all, but willpower and other cognitive powers. Fortunately, it’s not like the Average Joe is EA or vice versa.
In any case, consider that my answer of “how much to put into your own financial security vs. donating”. Not in terms of splitting a wage, but of bypassing the question entirely.