I came across a blog about a modern day homesteader, she and her family live off of $6000 a year. This translates to about $5.50 a day per person. In East Asia and the Pacific 50% of people live on less than $2 a day, 85% in Southeast Asia 23% in Northern Africa, 75% in Subsaran Africa, 20% in Latin America (more information). It is worth noting this $2 a day is adjusted for differences in prices in each of these countries.
I’m not criticizing the modern homesteader, it is just worth realizing that a large part of the world lives within these economic means.
Next week I will do an analysis of retirement savings for people in their mid 20s, based of of a recent NBER paper.