Below: - Couple 1 earns $65,000/year - Couple 2 earns $633,000/year What do you notice? One takeaway: As your income goes up, your Fixed Costs should go down as a % Couple 2 makes 10x as much, but their rent is only 7x higher. Even paying $7,400/month in rent, their Fixed Costs are 38% of their take-home pay. Couple 1's are 82% That's because many of the basic costs of life stay roughly the same -- toothpaste, bread, etc -- so as your income increases, your Fixed Cost % should go down Note: I'm NOT encouraging high earners to save all their money. As you make more, I encourage you to build the skill of spending money meaningfully. If you decide you want a nicer house, or a new car, or to spend $3,000/month on a personal trainer, GREAT! Your Fixed Costs will go up in dollars, but they should still go down as a % When I see high earners ($500K+) who are effectively managing their money, their Fixed Costs are often below 50%. Couple 2's Fixed Costs are 38%, one of the lowest numbers I've ever seen If you want to get this template and see how your numbers stack up, see below