A 24-year-old with $122,000 in total investable assets and zero debt is ahead of 99.9% of Americans; spending $3,000 on a vacation represents a negligible opportunity cost against decades of wealth building.
Extreme frugality becomes counterproductive once debt is eliminated and emergency savings are established, as foregoing experiences could damage quality of life and relationships.
A recent study identified one single habit that doubled Americans’ retirement savings and moved retirement from dream, to reality. Read more here.
George Kamel did not mince words when a 24-year-old newlywed called into The Ramsey Show asking whether he should skip a vacation to save more for a house. “You guys are going to be multi-multi-multi-millionaires if you keep living this way, but you’re going to have a miserable marriage if you keep living the way you’re wanting to live.”
The caller, identified as D on the show, is 24 years old, recently married, with no debt, $23,000 in savings, $45,000 in a brokerage account, and $54,000 in retirement accounts. The couple has a combined household income of $115,000. The vacation his wife wants would cost approximately $3,000.
D’s concern was that spending anything felt like falling behind on a house down payment in an expensive market. Kamel’s advice: “Go on the freaking vacation, man. What do you mean you got to catch up? You’re ahead of like 99.9% of America.”
Read: Data Shows One Habit Doubles American’s Savings And Boosts Retirement
Most Americans drastically underestimate how much they need to retire and overestimate how prepared they are. But data shows that people with one habit have more than double the savings of those who don’t.
He is right. The national savings rate stood at 4% in Q4 2025, and it has been declining steadily from 15% in 2020. A 24-year-old with $122,000 in total investable assets is not behind. He is way ahead of most of his peers.
Kamel framed the opportunity cost. “If I told you, ‘Hey, John, when you retire, you could either have $9.85 million or $9.9 million,’” he said. “Would you say, ‘Yeah, I’m willing to take the $9.85 million. That’s fine?’”
His point is that the $3,000 vacation is a rounding error against a multi-decade trajectory. On a $115,000 combined income, half a month of savings is recoverable in weeks, not years.
Kamel argued that extreme frugality should be a tool, not a permanent identity. When debt is gone and savings are healthy, continuing to restrict spending as if you were still in crisis mode can have a real cost — on your quality of life.
