This couldn’t be more wrong!
While having a higher income may put you on a better starting point, it doesn’t guarantee that you would be able to achieve financial independence faster.
In a 2022 survey done by Willis Towers Watson, a consulting firm, 36% of the U.S. employees with salaries of $100,000 or more are living paycheck to paycheck. This percentage has doubled since 2019. This phenomenon is called lifestyle inflation where the discretionary consumption increases as you earn a higher salary. Hence, while you may be earning a higher salary, lifestyle inflation can slow down your progress to FIRE.
Conversely, even if one is earning lower salary, as long as he is able to spend prudently, save wisely and invest consistently, it is still possible to achieve financial independence and retire early. After all, FIRE is simply a math game where you work through the numbers for salary, savings and investment income to attain your FIRE goals.
It’s time that you try it out on your own and find that right variation of FIRE which suits your lifestyle preference. The next time when you have peers who are still skeptical about the FIRE movement, share the article with them to clear their misconceptions about FIRE!