Let me tell you a sad story. In order to comfortably raise a family in an expensive coastal city like San Francisco or New York, you’ve got to make at least $300,000 a year. You can certainly raise a family earning less as many do, but it won’t be easy if your goal is to save for retirement, save for your child’s education, own your own home instead of rent, and actually retire by a reasonable age.

Although $300,000 is a lot compared to the median household income in the United States of ~$59,000, it’s not an outrageous sum of money once you look at the realistic income statement I’ve put together for this post. All expenses in my example use current prices. I’ve also cross checked the expenses with my family’s monthly expenses now that we have a son to make sure they are within reason.

I use $300,000 in this post because I also believe it is the ideal income for up to a family of four to experience maximum happiness. At $300,000, you aren’t paying an egregious amount in taxes, you probably aren’t killing yourself at work if both parents are working, but you’re still earning enough to live a comfortable lifestyle anywhere in the world.

Half the US population lives on the coasts, therefore, this post is directly targeted at folks who need to live on the coasts because of their jobs, schools, or families. $300,000 is a nice household income to shoot for, but not much more, if you are a coastal city resident who makes less.

Finally, this post should also provide insights to non-coastal city residents on how good you’ve got it if you enjoy living where you are. $100,000 – $150,000 is a rough non-coastal city household income equivalent.

It’s good to be frugal. If you are, you’ll likely never get into financial trouble. I was very frugal saving between 50% – 70% of my after tax income until about age 35. Then I decided there was no point saving so much money if I wasn’t going to live a little.

Instead of trying to walk the entire city of Budapest, I ponied up 30 Euros like a baller to get on the Hop On Hop Off bus. Instead of just having lemon water with my rib-eye steak, I started ordering a nice glass of Cabernet Sauvignon. As I pushed the spending envelope a little more each year, I gradually realized I didn’t miss the money. My lifestyle actually got better.

The root of my frugality stems from watching how my parents spent their money. My father always drove a beater and my mother utilized things until the very end. When you’re gunning for early retirement, every single dollar counts. And once you’ve left the work force, there is a lingering fear of running out of money that’s hard to elude until after about the third year.

If you suffer from frugality disease, here are some things worth spending a premium on for a better life.

Like many of you, I’m frugal to a fault. For 13 years after college, I saved 50% – 70% of my income partially due to humble living conditions. From 28-37 I drove a $8,000 car that depreciated to $3,000 even after my income grew by 3X. And even after I had finally escaped the corporate world in 2012, I still couldn’t stop saving at least 50% of my income.

By the third year of early retirement, however, I started seriously questioning the point of working and saving so much if the money was never going to be spent. Saving for retirement in retirement is illogical. I started getting angry at being unable to kick my frugality addiction to the curb. People with much less were spending so much more and having a great time doing so. Why couldn’t I be more carefree?

Despite my best efforts to spend more like everyone who posts about their fabulous lives on Facebook, touching principal still felt like a crime. Instead of relaxing as a good retiree should do, here’s what I did instead to maintain a 50%+ savings ratio:

* Worked on ways to generate $200,000 a year in passive income

* Took on part-time consulting gigs with three fintech companies over three years

* Continued publishing 3X a week on Financial Samurai

* Developed new online business partnerships

* Downsized to a smaller house to free up cash flow

* Bought a Honda Fit instead of a Jeep Grand Cherokee Limited

* Invested 90% of every dollar saved

Then one day, I burned out. I dropped all my consulting gigs, wrote the biggest e-mail autoresponder known to man saying I was too busy, and finally found some breathing room to spend a little more than normal.

Instead of limiting myself to $100 shoes, I ventured out and bought a $240 pair of shoes (on sale for 50% off of course). The guilty feeling only lasted for an hour while the pair of Tod’s loafers is still my favorite shoe three years later.

Instead of taking an Uber Pool to save $6 to go downtown, I began ordering my own Uber. I still feel guilty for some reason, but the feeling has lessened because I remind myself that time is way more valuable than money.

Instead of staying at a 3-star hotel in Angkor Wat, Cambodia, we decided to stay at a 5-star hotel for $100 more a night. We knew we were never coming back, so we also hired a private van with much needed AC to be our driver for $50 a day. It was so worth it.

Then I realized something. Keeping spending constant after a certain age eventually leads to lifestyle deflation because everything is relative. If everybody still watched cathode ray tube TVs, you’d be happy with your tube TV. But you’re no longer as happy when everybody else is watching a paper thin 4K TV. If you don’t at least increase your spending at the rate of inflation, your quality of life will begin to deteriorate because you can’t help but notice progress all around.

For those of you who can’t seem to lift your spending despite an increase in your income and net worth, let me share with you five ways for overcoming frugality so you can maximize your lifestyle. Dying with way too much is poor consumption planning. 

“When I was trying to buy my first home, I wasn’t buying smashed avocado for $19 and four coffees at $4 each,” Tim Gurner, an Australian property mogul told 60 Minutes.

“We’re at a point now where the expectations of younger people are very, very high,” Gruner said. “They want to eat out every day, they want to travel to Europe every year. The people that own homes today worked very, very hard for it, saved every dollar, did everything they could to get up the property investment ladder.”

Tim’s words have ignited a backlash from millennials who are offended someone would attack their eating desires. Eating expensive food is a sacred right! The nerve of this guy. Next thing you know, he’s going to dissuade people from buying $300 designer jeans when they already have a credit card balance.

As fate would have it, I just had a $10 bowl of guacamole the other day at Tacoliscious in the Marina district, after spending time doing some ceiling patch work on my rental house. All around me sat a bunch of young and fabulous looking folks who enjoyed the 78 degree San Francisco sunshine. Oh, how I wish I didn’t have a house to do work on. I could have gone straight to brunch!

Bottom line: If you’re a millennial who wants to spend $25 on the finest breakfast consisting of avocados, bacon and crumbled feta cheese, go for it! You don’t need to save for a house because you’re either living with your parents or your parents will eventually buy you one when they can’t stand you any longer. And if they don’t buy you anything, they’ll at least leave you their house when they die.