It is natural to assume that only hard work can get you enough money in relatively short period of time, so that you can retire early. However, most people contemplating this possibility forget that it is actually efficient distribution of money that actually helps you save enough to fulfill this dream. Regardless of your average monthly income, there are several ways you can ensure financially stable future and they require frugal living.
How to plan Extreme Early Retirement
Do you know how to plan for retirements? Here are five tips that will help you plan your early retirement:
What is frugal living anyway?
In contemporary consumer society, it may be extremely difficult and, for some, even impossible to select true priorities when it comes to spending money. The truth is, the way you live does not always depend on your resources but on your everyday habits as well. Frugal living primarily refers to being aware of the sum of money you posses at any point and carefully distributing it to the things that really matter. Of course, we all like to enjoy little things and frugal living does not mean we should always restrain from what gives us pleasure. It does mean, however, that we should probably figure out the ways to buy them at lower price.
Rethink your monthly budget
With all the daily expenses it may be difficult to see where your monthly salary actually goes. Clearly, you need to pay the rent, buy some food, visit theatre or your favorite restaurant and all these little items on your budget list may appear insignificant until your salary is all gone. To save some money , you do not actually need to stop with all these, you just need to find ways to pay less for them and plan your stress-free retirement .
Start switching off the unnecessary lights to save on your electricity bills and that will lead to some bigger savings. When you are going to a supermarket, at least consider buying premium pack of snacks or another thing that is a daily deal at the moment . Whatever your favorite meal outdoors is, chances are you can buy it cheaper at some different place only if you search for it or if you collect promotional coupons.
Change your flat
Obviously, the place of living is chosen based on several factors but the two most important are the size and location. If you are really looking forward to having your own big house one day, you may at present need to choose a smaller flat that would cost less and would enable you to save on monthly expenses. Do not forget that a studio can be as comfortable for a single person as a larger flat if you make it so. Also, you should definitively consider renting a place that is close to your work because than you won’t have to drive to it every day and spend on gas. In fact, you do not even need to own a car if the most important things are close enough to you.
Buying a bike is not actually a large investment but it can certainly help you save a lot. Consider the usual routes you take every day. Are most of them in a cycling zone? If they are, that means you do not have to take public transport or drive every time you go out. Instead, you can ride a bike, save on gas and possible car maintenance, while the additional plus is that you would get fit and healthy.