Fall Update — Assessing the Fallout from an Explosion in Expenses

Lifestyle creep. We have been pretty good about keeping lifestyle creep to a minimum over the years. When I was unmarried, I lived on $25K in Manhattan. This went up to $30K in the Bay Area — I guess inflation — then $50-55K as a married couple without any kids. My friends sometimes teased me about the apartments I rented because some were old and others came with eccentric roommates. But keeping expenses low allowed me to save a big chunk of my paychecks, from when I was making $80K out of college, $200K out of law school, and $350-650K as a junior partner. Continue reading