Cut 3 expenses to become a millionaire
You’ve come to the right place to learn how you can achieve FI by cutting back on just 3 major expenses while still living a modest (not frugal) lifestyle. You will also learn how the FI family made modest but impactful budget decisions that saved well over $400K in the 15 years it took them to reach FI.
Perhaps more importantly, if you start following this guidance today, you could be a millionaire in 15 years just by making sound choices on housing, cars, and food.
Do I need a crazy budget and will it really lead to early retirement?
The answer is . . . no and yes! You don’t have to be the crazy coupon lady, but you can still and should retire early with ease.
My family saved nearly $400k or nearly $1M, counting investment returns over 15 years, through living a budget below the average American family. You can too and you don’t have to give up the things in life that you enjoy most. In the Secret Life of FI Save Series, I will detail just 3 key expenses my family cut that added up over time.
I recommend this approach for most readers. Unless you are a glutton for martyrdom, I do not advocate for extreme budget cutting.
The budgeting game is no different than weight loss . 80% of dieters regain the weight lost within one year. The same psychology applies to budget cutting. The best habits are ones you can sustain.
I suggest you start your financial independence journey focusing on 3 major expenses: housing, cars, and food.
For fun, if you do want to test the potential savings impact of micro-budget cuts, I’ve thrown in a bonus study on DIY haircuts and credit cards points. You can easily find similar savings by cutting something else in your budget that brings little value, such as switching cellphone carriers. Click the links below to learn more.
Food
Cars
House
Micro Budget Cuts