I would disagree with his point that "cutting your spending rate is much more powerful than increasing your income." He says this is because it permanently reduces your cost of living, which reduces your required retirement nest egg.
But increasing your income has permanent affects too: it increases your net each month, and multiplicatively increases all future earnings. A $3K raise or $10K bump from job-hopping today will bump up all future salaries. And then this trickles into additional retirement savings, and you get more multiplication from investment returns.
My point is that, yes, be frugal, but put at least as much time and effort into increasing your income as you do into reducing spending.
The other reason is that, you can only reduce spending so much, until you are living on bare essentials. But your potential income is unbounded. :)
Greater income only last until you stop working, which may not be very long if you're seriously planning on retiring early. But you can maintain a lower cost-of-living until you stop living, which will hopefully be a much longer time. :)
But increasing your income has permanent affects too: it increases your net each month, and multiplicatively increases all future earnings. A $3K raise or $10K bump from job-hopping today will bump up all future salaries. And then this trickles into additional retirement savings, and you get more multiplication from investment returns.
My point is that, yes, be frugal, but put at least as much time and effort into increasing your income as you do into reducing spending.
The other reason is that, you can only reduce spending so much, until you are living on bare essentials. But your potential income is unbounded. :)