If you haven’t reached wealth yet, the quest for early retirement can seem like it’s defined by giving things up. Quit this, ditch that — as if the only path to retiring before 65 is to endure hardship now.
Of course, you want to enjoy an early retirement, which means having enough savings to support the lifestyle you envision. At the same time, you want to live in the present in a way that brings you happiness.
A survey from annuity.com discovered that many people would be prepared to forgo some of life’s greatest conveniences to reach FIRE (financial independence, retire early):
The findings indicate that 20% of respondents would skip having children, 27% would go without a pet, and 28% would stop dining out to shave years off their retirement timeline. Some even said they’d downsize to a tiny house or sell their car!
But there are smarter approaches. You don’t have to abandon the things you love just to retire on your preferred schedule. Below are a few commonly suggested sacrifices to speed up retirement — and why we believe you don’t need to make them.
1. What They Say: ‘Surrender Your Car’
Auto payments, insurance and repairs can add up, making car ownership a major expense. Those aiming for early retirement often lean toward minimalism, so getting rid of a vehicle is an appealing cost-cutting move.
However, unless you reside in a city with excellent public transit or bike-friendly streets, you’ll likely need a reliable way to travel. Instead of selling your car or letting a lease end, consider these strategies to reduce automotive costs:
- Buy a pre-owned vehicle. Even though financing rates for used cars can be higher than for new ones or leases, purchasing used often saves you thousands over several years.
- Lower your insurance premiums. Shopping quotes every six months can cut roughly $610 from your annual insurance bill. A site called EverQuote simplifies comparing policies. EverQuote is the biggest online insurance marketplace in the U.S., delivering top options from more than 175 carriers directly to you.
2. What They Say: ‘Give Up Online Shopping’
Online shopping can drain accounts — it’s effortless to add items to your cart, click checkout, and wait for deliveries to arrive. If your goal is to bulk up savings over a decade or two, uncontrolled online purchases can be a big obstacle.
That said — you don’t need to stop shopping on the internet entirely. You just have to shop smarter: don’t overpay and earn cash back when possible.
That’s exactly what this complimentary service helps you do.
Install it in your browser for free*, and before you finalize a purchase it searches other retailers, including Walmart, eBay and more, to see if the same item is cheaper elsewhere. It also applies coupon codes, sends price-drop alerts and displays price history.
Say you’re buying a new TV and believe you’ve found the lowest price. A pop-up will notify you if that exact model is available more cheaply somewhere else. Any available coupon codes will be applied automatically to your order.
Over the past year, this tool has helped shoppers save $160 million.
You can start in just a few clicks to check whether you’re overspending online.
3. What They Say: ‘Skip Dining Out’
The rising cost of eating out has driven many of us to cook more at home, causing dining-out budgets to decline. It’s no wonder 28% of people said they’d stop dining out entirely to reach early retirement.
But for the other 72% who enjoy restaurants and delivery, financial independence remains achievable. You just need to be tactical so you can continue supporting local eateries and give your household a break from cooking.
Hunt for deals: look on Groupon or use a AAA discount. You can also buy reduced-price gift cards from sites like Restaurant.com. If you have kids, seek restaurants that offer free kids’ meals on certain nights.
Also, ensure you’re getting cash back whenever you dine out (or swipe your debit card in general).
4. What They Say: ‘Downsize Your Living Space’
The tiny-home or small-space trend has gained traction among the retire-early community. Smaller homes are cheaper to buy, often mortgage-free, and typically cost less to maintain.
In fact, 17% of those surveyed said they would live in under 700 square feet if it meant they could retire sooner. That might work for a single person, but for couples or families it may feel insufficient.
Rather than shrinking the space you love, consider ways to save money and generate income from it:
Earn up to $300 a month from an unused garage
Extra spaces in your home don’t have to sit idle. You can rent out unused storage — a shed or garage — to neighbors who need it. A platform and app called Neighbor can help you make up to $300 monthly, on your own terms. Use their calculator to estimate what your available storage could be worth.
Amy Langford is a staff writer at Savinly.
*Capital One Shopping compensates us when you install the extension using the links provided.
