Retiring early is about achieving financial independence as soon as possible. While the concept is good, it sure requires planning and even some sacrifice. The key is cutting your spending so you can save enough money for early retirement. Here are some ways to lower your costs and max on your retirement savings right now.
1. Housing costs
This probably eats a large portion of your budget. Consider getting a rommate or downsizing to cut costs. If you prefer maintaining your own home, turn it into a moneymaker by renting a room or your entire home whenever you are not there.
Coupons can help, but you can further reduce your spending every week if you cook more at home, buy in bulk, and learn how to make your groceries last longer.
3. Eating out
Cooking more at home is infinitely cheaper than eating out, ordering take-out, or buying meal kits. You can also invite people over and have a good time over a hearty, cozy homecooked meal.
The best thing to do to avoid car costs is to maintain the health of your vehicle. If you really need to buy a new one, consider picking up a late-model used car. It can save you over 50% compared with the price of a new model.
Use public transport if it is reliable in your area. You will save on gas expenses and it is better for the environment.
6. Clothing and footwear
Shop at thrift stores and other second-hand shops. You can also host a clothes swap with your friends. Online, there are many places that offer gently used clothing at cheaper prices, too.
Buy your alcoholic drinks from warehouse clubs to get lower prices. Even better, give it up altogether and bust that drining bill completely.
8. Prescription drugs and OTC
Shop around and compare prices. You can also sign up for discount cards to get cheaper medications.
9. Cleaning supplies
Instead of buying your cleaning supplies, learn how to DIY them. They are relatively easy and inexpensive to make. The less you spend, the more you can put towards your retirement savings!