I Know What You Are Thinking
Guest Post by Captain Average
The more I read from these two FAT CATS, the more I think that they are making recommendations for the few and ignoring the many. Their advice can’t possibly make sense for the average family making the median family income! And I know you are all thinking the same thing…this is all completely irrelevant to me and my family!
I mean let’s look at the facts here….
In 2015 the median family income in the US was $56,100.
The FI Heroes grew their incomes to exceed this, so it’s obviously much easier for them to save than most families out there. Oh and let’s not forget to take taxes in to consideration here. They eat up about 30% of what the average family takes home. Check out the math, for the median family, taxes account for a whopping $17,151. Taken right off the top!
This leaves the average family only $39,359 to save and/or spend each year. The FI Heroes already admitted that this is what they spend each year in total! So they spend what the average family earns after taxes? What hypocrites! They aren’t frugal at all! I bet the FI Heroes use FAT CAT tricks to get around taxes too!
So while FI Heroes are spending just about the same as the average family, their savings rate is through the roof at close to 80% savings! If they were making what the average family makes then their savings rate would only be at 5.7%!
According to the US Bureau of Labor Statistics the median family spending is broken out the following way:
If we divided up this spending profile into Needs versus Wants you’d find that, on average, most people are spending most of their income on true needs:
I mean, you gotta work and you need a vehicle to get to work. You need a place to stay. You need to heat / cool your place and keep the lights on. You need to eat and don’t get me started on medical costs in the US!
That only leaves a small portion for the average family to spend on their wants such as:
If you cut all of the wants out, how could you possibly enjoy life? What’s the point of that? I think these FI Heroes need to come back to planet earth.
The average person couldn’t possibly do what they are setting out to do… Right?
(Editor’s note: Stay tuned for FI Guy’s response to this clown)