It's not just that. As there is a (fluent, but still) correlation between money and material goods, it's not the same to be able to save 5% of 20K a year, and 5% of 200K.
One way I like to look at it, is how long would you have to save up to have 20xmedian (net) yearly income in your area in the bank? That is, after subtracting whatever reasonable living expenses, how long would you have to save all that's left to have 20 yearly incomes in savings? Because at that point, barring financial crisis -- you should be able to live off the interests -- at roughly median income.
It's actually a pretty small number -- the point at which you could reasonably retire just on your own savings pretty much indefinitely.
But it's something that is generally impossible to do unless you are "well off" -- and not at the bottom of the pile, so to speak. On the other hand, as soon as you start making "real" money (say 1.2x median income) it becomes almost trivial if you deem it to be a goal worth trying for.
One way I like to look at it, is how long would you have to save up to have 20xmedian (net) yearly income in your area in the bank? That is, after subtracting whatever reasonable living expenses, how long would you have to save all that's left to have 20 yearly incomes in savings? Because at that point, barring financial crisis -- you should be able to live off the interests -- at roughly median income.
It's actually a pretty small number -- the point at which you could reasonably retire just on your own savings pretty much indefinitely.
But it's something that is generally impossible to do unless you are "well off" -- and not at the bottom of the pile, so to speak. On the other hand, as soon as you start making "real" money (say 1.2x median income) it becomes almost trivial if you deem it to be a goal worth trying for.