1 Jacob Adjusted For Inflation (JAFI)

[Laura Ingalls]

I just tallied our 2018 expenditures. In at about 1.34 JAFI per human. Considering we had year with some international travel We went to Cape Cod in August with a known lobster addict(DH). We insure a teen driver . We drink too much craft beer .. All in all mindful/reasonably frugal but not particularly restrictive.

[jacob]

I'm thinking maybe this metric should be rescaled using the modified OECD scale. In that case 1JAFI (2019) = 8432*2/sqrt(2) = $11924/yr baseline. That way it can be used and account fairly for all size households, like, if it's a 3 person household, 1 JAFI would be 11924*sqrt(3) = $20652/yr total. (If this does not make sense, click the link.)

PS: I spend about 0.85 JAFI.

Add: It just occurred to me that if the original JAFI is based on a pre-2005 number when I was living alone, then it should not be corrected with sqrt(2).

[Laura Ingalls]

So we are at 1.34 if you just multiple JAFI by 4.
We are at 1.69 using the modified OECD.

[iopsi]

I think for someone who is ERE, expenses shouldn't increase linearly with inflation, but less (infact jacob has 0.85 JAFI). Since many needs would be satisfied by DIY (gardening, building instead of buying), physical abilities (bike instead of car) and social capital.