It is based on $7,000 in the year 2007 and is adjusted for inflation with CPI in USA.
I used the US Inflation Calculator.
Bankai wrote: ↑Sat Sep 01, 2018 4:36 amI'm wondering if a jacob should not be adjusted for inflation. After all, once expenses are optimised, it's quite difficult to keep cutting them further year after year (the lower the spending, the higher the proportion of unoptimizable expenses (i.e. taxed usually only go higher)). Especially in the long-term. One could've probably lived quite comfortably for $700 back in 1918 (equivalent to 1.8 today's jacob). Not so much nowadays.
Checking online inflation calcs, 2008's jacob has inflated to around $8200 today (about 17%). Should we start using 'IAJ' (inflation adjusted jacob) or 'JAFI' (jacob adjusted for inflation) or something similar?
Another benefit would be that 'the dream' (spending within 1 jacob) would not become more and more elusive and unattainable as the time passes. It's super hard as it is, even for people on this forum, and devaluating the jacob further would only discourage new converts.
Where would you say should the reference point be? The year you first divulged your spending level on the blog? 2008 was a stab in the dark on my part, but I imagine this wasn't far off - 2006-2007 maybe?