$500k for 3 TPE is still a more efficient way to earn TPE than the $1m for 5 TPE, so sticking with the $500k can stretch your money twice as far if you carry a lower bank account value. Also avoiding the purchase of gear that provides you with TPE you don't want to apply, which saves you on equipment, and on the cost of redistributing that TPE you wouldn't want. Avoiding gear altogether is a good idea for anyone who isn't earning money from at least three sources (contract, twitter, media, graphics, site job, etc), because it is one of the least efficient methods of earning TPE. It can be hard to get by as a first gen player, but getting your money to last a little longer can make all the difference, and the long term effect is only having regression hit a little harder a little quicker. One example I use a lot is Chris Partridge, the guy is gonna hit 1300 TPE (top contract tier) and never buys gear. If you want to get a lot of TPE very quickly, then you'll need all that money for sure, but you can still get there eventually without the extra work if you can't afford the time.

Really great article @PenKnight