Been coding with AI a lot this week and it's wild how much of an edge real architecture knowledge still is.
Seeing frontier models constantly reach for the wrong abstractions. Easy to course-correct, but only if you already know what good looks like.
Aight, here it is:
My argument for spending less vs earning more
vvvvvvvv
Jeb and Fred both make $100k/yr
They both spend $100k/yr as well.
They realize they are never going to retire.
Jeb decides to get a new job making $150k/yr and keeps his spending at $100k yr. He invests the $50k difference.
Because he needs $100k/yr for living expenses, he will need $2.5 million in his investment account to draw out $100k/yr and have it last for his retirement without running out of money.
Given 7% stock market growth, it will take him 22 years to have 2.5 mil and retire.
Now, Fred takes an alternate approach. He too wants to invest $50k/yr, however, instead of getting a new job and increasing his income, he decides to decrease his expenses by $50k by cutting out avocado toast.
Because Fred only needs $50k/yr to live off of, he only needs a 1.25 million dollar nest egg to fund his retirement without running out of money.
Given the same stock market performance, it would take Fred 15 years to retire with 1.25 mil.
Jeb and Fred both increased their available cash by $50k.
One can retire 7 years earlier than the other.
If you make more money, you win once.
If you spend less money, you win twice.
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