Feel the same about Norway. Would be nice to retire somewhere sunny, warm and cheap. Could go out and eat every day for the same cost as being cheapskates here😅
To me, the key message is to continuously live below your means and take advantage of all your Company benefits (401k, company match, HSA, etc). With the excess pay each month...”invest in what you know and watch it grow”! Thanks for another insightful video filled with great tips. And, yes, I walk the talk and have reached financial freedom before 50. :)
I push hard for my nephews, nieces, and other relatives and friends to get Roth IRAs, starting with even a modest contribution. This is a no-brainer to me after they get their 401k match, but I have found it impossible to convince many of them, even when I offer $1,000 for them to be able to use money from their paychecks to start.
My wife and I are 9 days apart in age. We're both in our second marriage (20 years and going strong now). I had full intentions of retiring at 65 years of age and my wife at the time not certain if she was going to follow suit. I had 21 months to go (after a 38 1/2 year career) and my company offered me a buyout! I could work 3 more months and then get 12 months pay, 3 months more cash for medical insurance plus a 8% anticipated bonus! I jumped on my wife's company medical benefits (because I didn't qualify for Medicare yet) and took the deal! At 65 my wife retired and took a 6 month contract job with her company (getting paid double her hourly pre-retirement rate AND working mostly from home) and at the end of 2019 she quit working completely. The stars certainly aligned for us!
Hi Erin, great video! You brought up a lot of good points. Two of your points have helped me. Eating out less and buying less groceries ( none necessities like cookies and different types of potato chips, etc ) Having cut back on those, have saved me money. And speaking of pets, how’s Peanut doing? I haven’t seen him in your videos lately. And I miss your outtakes 😞 Have a great week😊
Peanut is living his best life 😊 He's been hangout by the front of the house while I film so he can sunbathe. I will try to bring the outtakes back at some point!
I didn't give up eating out to retire early. Yes, I already did retire early. 52. I gave up the 5 BR house 3 car garage (including the maintenance, 5 figure property taxes and everything else!) all full of stuff and a new car every 3 years. Actually, downsizing was very freeing and liberating. Accumulated a lot of stuff through my life and reality it didn't do much for me. I am single and agree it was harder to retire early being single.
We’ve been giving up on major vacations, cut dining out and spending on “wants” by 70-80%. We’ve been doing this since we bought the house 5 years ago, 2-3 more years till we pay off the house and we get to loosen the belt a little. Some none negotiables - bought a new dependable modest fuel efficient hybrid car to drive to the ground (1 car house hold), health (doctors, wellness, quality groceries), investment for future (retirement and investments).
A better question for me would be, What haven't I given up? My son and I eat out once a week and take turns paying. I cook from scratch at home using pantry staples I buy on sale or at least at the lowest price possible. I am debt free and live below my means. I am 59 and I still don't know if I will ever be able to retire. The biggest obstacle is insurance. I basically work for insurance.
I think another thing you can "give up" is some of your free time - e.g. to get a side hustle or put in the extra effort at your main job to get those promotions. The latter is the path I chose, increasing my income quite nicely over long periods of time - I'm making about 4x what I made in 2006. Just like with everything financial, you need to be very consistent, very patient, and accept that just like with markets, you'll have setbacks in the way, too. If you don't let your expenses get out of control, that'll start adding up.
I recently agreed to take a buyout from my employer and retire 3 years earlier than I had planned. My wife and I plan to delay some of the more expensive trips abroad and travel more in-country for the first few years of retirement. Once we see that our investments are keeping up with our expenses, we can reintroduce the occasional "bucket list" trip into our vacation budget. I also gave up on buying my dream retirement vehicle and settled for a gently used vehicle at about half the price. I consider my time to be priceless, so these "sacrifices" were an easy decision for me.
A lot of people feel obligated to spend more for a house than they would like because they want a quality school system for their kids - its not just about square footage. But something that most people could give up - vices!! The beer, wine, cigarettes, whiskey, lottery tickets and trips to the local casino can destroy your finances and a lot more in your life. And those are the legal vices....
Delaying gratification is a big deal in saving for the future. Few people understand the miracle of compound interest and investing early. Investing early in a dividend growth ETF or fund and reinvesting dividends can change a life.
Peace, is being in a place to retire at any time you wish …. No debt and living below your means … total control … or as much as possible …. Thus, from age 62 on, I’m good to go … thanks !!!
I'm willing to give up my job but currently the numbers do not work out for me to retire early due to be dumb and starting late in saving for early retirement.
Early retirement is my expertise - I retired at 55 in 2011. I did in fact cut back on dining out after I retired. We decided we would keep our monthly new restaurant explorations down to $100 for the two of us. I also quit my Napa Valley wine club and kept my wine buying to the $12-20 per bottle range. Otherwise, I didn't have to give up much and found I was spending less than expected after the first year of retirement. We never had kids but we did have dogs and I can't see how pets (within reason) is going to impact your retirement goals. We bought one home (950 sq ft) and paid it off on time in 30 years. It helps if you don't have kids and you stay employed in the same area all that time. The point is we remodeled the house but we didn't keep buying bigger and bigger houses. We had 2 cars but we kept them 7-10 years and always bought modest priced vehicles. My mother taught me the 24 hr rule when I was a kid. It probably saved her a lot of money.
9:45 my issue with this is, if you're a renter, you are enslaved to market rates. I can't afford to buy a house and when rent continues to rise I feel stuck. I shouldn't have to work 16 hours a day on my 40 year old knees just to put a roof over my head because of investor greed. 😑
I am guessing that you must be American to have to put up with such awful work/life balance issues? The saddest part of seeing your post is I cannot really think of any constructive suggestions I could give to break your 'chains' that keep you slaving away to stay in the same situation. About all I can conjure is that maybe you can see if you can get a friend or family member to share the accommodation costs? It's hard to give up your private space but that's how most of us ordinary folks here in the UK started out back in the 70's - leave the parental home and move in with three to five other people in a shared house (usually a house that these days would be condemned as unfit for human habitation :)).
I can relate to the renter investor greed. There was a take over a year ago from greedy investor. I had to look for an affordable rental. It was all very stressful & my employer decided to eliminate jobs which mine was one of them. 😔 Luckily I found an affordable rental & could fall back on some retirement money. Unfortunately a year later still unemployed due to this job market. I have never spent money frivolously or above what I can afford.
What my husband and I have NOT chosen to give up on our journey towards financial independence: 1. Having kids! (We have six!) 2. Travel! 3. A safe comfortable home (For us, family, faith, and travel are the richness of life and could never be sacrificed) We HAVE given up: 1. Any car that would require a car payment (you last video shows the massive financial gain from this decision) 2. Upgraded homes/too large homes/gated communities with big HOA dues 3. Eating out ( we eat out very infrequently) All these are of course very personal choices, but for our values this is the combo that works for us!
I lived in 400 sq ft for over a decade. This place felt HUGE to me when we moved in!! Still does in a lot of ways, definitely have empty rooms. I meant compared to the typical average size home in the US, which is well over 2,500 sq ft, it’s not large.
We had 2 kids, always had pets, had a 2500 Sq ft 4 bedroom house, had 4 modest vehicles, contributed regularly to our kids' 529 plans, and while I was working I had lunch at the company cafeteria every day (I guess that counts as dining out?) but was still able to retire at 60 and my wife retired 2 years later when she turned 55. What we gave up was lavish vacations. We had friends and neighbors who took the whole family somewhere they had to fly for a week at spring break and again during the summer. Sometimes throwing in another week at Christmas. We were lucky to live in a city about 250 miles from Chicago, Minneapolis, Omaha, and St. Louis, so we did a lot of long weekend driving vacations. We stated at modest hotels and ate a lot of pizza - and the kids loved it. We went to zoos, water parks, solariums, and amusement parks. When the kids got old enough to remember it, we went to Disney World and a Disney cruise. We also went to Mexico one year for Thanksgiving, but that was it for "big" vacations. Doing that enabled us to put more money into our 401(k)s and build that retirement nest egg. We asked the kids when they got older, and they said they never felt like they missed out on anything.
There are financial things you give up when retiring early, but you really have to think about things you give up when you retire at any age: having colleagues to greet you when you arrive at work, working together on projects, group lunches, parties, customer visits, business travel (and free frequent-flyer travel), other perks specific to your company (health care, stock options, clubs, etc.). It's good to be able to retire when you want, but I think you shouldn't retire if you enjoy your job. Freedom to do whatever you want whenever you want is highly overrated.
There is traditional retirement, as it is commonly understood, and there is financial independence where you could stop work at any time. I would not agree that doing what you want is overrated. You are doing what you want by continuing to work even though you may not need the money. The rest of us have found satisfying activities that aren't traditional paid work but we are busy and fulfilled just the same.
@@martypoll Perfect Point Marty. I am financially independent and choose to work part time and then have the freedom to spend more time with family and friends while also volunteering in the community. It’s all about a personal choice to,live your life to fullest with purpose. No need to work for money and report to a boss with all the pressure to perform (not very fulfilling to me).
people who believe that the freedom to do whatever you want whenever you want is highly overrated simply have never been in that situation. I would never consider any of the things you mentioned as benefits I'd be giving up. Then again, when I was working I was a terrible employee, because I chose not to live to work.
Hi Erin, great video. I binge watched like 10 videos right now. You have such a soothing voice and content delivery. It feels like a friend talking to me and giving me all this wealth of knowledge. Keep up the great work and please don't change the format of your videos.
My wife, my two children, and I share a single vehicle. We are planning on moving somewhere where we don't need a vehicle at all, but for now it isn't an option. I wonder how many people would be willing to give up their vehicle if they had good public transit.
I have very convenient public transit access, but don't readily use it because it takes more time and I dislike the stress of changing buses or trains to meet the shortest transit times. It's nice when you can find a job that requires no transfers, but that is often not the case.
@@hanwagu9967 It sounds like you have public transit access, but I would question you calling it "very convenient". My wife came here as an international student and never drove before moving to the US. She said she didn't even look at a bus schedule because buses came every 3-5 minutes. That's what very convenient public transit looks like in several countries around the world.
I retired from Federal Reserve at 51. I agree with you. I actually believe you can enjoy all the activities you outlined in your video…the key is starting early and being consistent in your savings and investing. Really the only thing I gave up was a larger Nest egg and a larger pension by not waiting until i was 60 and certainly that wasn’t worth it to me. Once I accumulated a large enough portfolio, I knew I was done. Now I’m relying on passive Dividends and options income to pay the bills. Life is sweet.
I feel like a lot of people who eventually pay off their car note after 3-5 years think "hey I now have extra money to spend on something else I want" and find more indulgences, rather they've already lived without that "extra money" for those 3-5 years, so just KEEP making that car payment in the form of SAVING AND INVESTING the money instead 👍
I would not, in fact, give that up to retire early (except I already don't have pets). 😂I still live well below my means, however! I feel absolutely no shame getting one or two take-out coffees a day, or taking the kids out for a treat, because I'm still saving 30% of my income. If you include the job contributions to my DP Pension and my OT pension, I'm saving something mathematically more like 60%. I should note, my car is ten years old, and I plan on driving it another 8-9 years (I do all my own work and stay on top of the rust issue).
One important rule I've always had was not to give an "F" about the Jones'. Also, I don't enjoy paying $30 for a plate of generally unhealthy food at a resto or daily fast food lunches.
yeah, i like to walk around the neighborhood and judge people for not being able to park in their garages, and point out things on their houses needing repair.
My wife and I are in our early 40's, and after we moved to our new home here in WY, my wife was able to leave her job to stay home with the kids. I get to work from home (have for 7+ years now), so I am thrilled to get to play with the boys daily. That is not where we scrimped at all :) We have heavily limited our: Going out to eat Extravagant vacations (we are homebodies by nature) New cars (generally buy used, and both are paid off, and paid either in cash immediately or paid off very rapidly) I am planning on retiring around age 58-60, depending on how life goes, so a bit early but not bad, considering at age 28 I was near bankrupt, and didn't really get back to a net worth of zero until age 30 when we got married. Investing heavily, keeping debt to a minimum, not financing cars, and some good real estate investments over the past 12 years have really gotten us back on track to retire on time or even "early".
Keep cars for a long time; eat out much less and never order alcohol eating out; minimize expensive vacations; buy/rent less home than you can afford; and be disciplined with consistent savings or 10%+ of income. But kids? Pets? Kids and animals give life so much meaning for most people. Worked for us as regular income people who ended up with $1mil+ net worth at age 60...
We made living below our means a way of life. So in my mind, we didn’t give up anything. We just didn’t allow lifestyle creep to become a problem. We’re retiring at 54 and 55 (retiring July 1st) so a little early. One thing I wanted to add was our first house was our largest at 2500 sqft but 5 homes later, our current house is 1400 sqft.
I was thinking that for us, most of these were not a question of "giving up" but preference. We benefited greatly from a tap water taste on a champagne income. Hubby had a big house and a big SUV when we met, but was otherwise frugal to cheap. I had a small condo and a small hybrid car, but was spending a lot at coffee shops and restaurants. I told him I didn't want to clean all those bathrooms and he told me he didn't like coffee, so he moved in with me and with his company, I went out less. Like not having kids and pets, the decisions were not based on finances, but they sure were financially beneficial decisions.
us DINKS with dog live in 5,000sqft house and don't even go in the basement or second floor, since we have a main floor master. Would I give it up to retire early? Well, since I retired early, I guess not. There are legitimate financial reasons for us having purchased a larger home than we actually need, so I think there needs more context to the generalization. Primary drivers were location and resale, and the fact we have a 30yr 2.375% fixed. First and foremost, the location is convenient to avoid all the massive traffic commute to work. We are also literally wedged between two high rent towns but outside of the those town boundaries, which effectively halfs our property taxes in relation to those towns. The house is also situation in a highly accessible highway and mass transit station location, area for the most desirable schools, easy access to all those outdoor and city living crap, and the house has a desirable house size for families wanting to be in the desirable school and accessibility area. Most importantly, even though surrounding areas suffered the same market drop in 2008, ours did not and has continued to appreciate (nearly doubled in 13years). So, there are legitimate, good financial reasons for buying a larger house than you would actually need. When my sugga momma retires and we no longer need the close to work location, then we'll sell and downsize. Since our retirement income without having to touch any savings or retirement savings will be about 2/3 of our active working income, we are really not actively giving up anything to retire early. This doens't mean we didn't tighten belts earlier. We always have had a goal of only living off no more than 50% of one of our incomes and plowing the rest of net into savings. We currently shoot for 1/3 taxes, 1/3 savings, 1/3 spending. Even so, I abhor things like paying for food or beverage delivery, we do eat out on weekends, but cook breakfast and dinner and pack lunches, i do my own lawn work, etc. I can't see paying other people to do things that I can do myself, unless I get really lazy. Even then, I regret paying someone like a painter, because I know that I could have done a better job.
Early retirement is kinda scary though...sitting around doing nothing but watching tv shows and playing video games...probably get bored of traveling after a while too. Vacations and flights wear me out sometimes. And then they are "lean fire" meaning they don't even how a lot of extra for traveling or extravagant lifestyle. I know a lot of older people get sick and die when they retire. You have to find a new purpose. Look at the youtube channels of Asian guys who have accomplished early retirement...they're content starts focusing philosophy of "what is the purpose of mankind? If we don't work...what is our purpose?" etc.
3:00 Don't order drinks out - This tends to save about $2.50 - $3.50 per person at a restaurant and the savings don't just stop there because you also save when you figure you TIP percentage for the lower total !
Thanks - - I recently discovered your videos and enjoy your presentation style and pragmatic, balanced content. For those who live near their friends or relatives, I can see that there is a trade-off regarding dining out used as a social activity. It may also be killing restaurants and changing that part of our society, making us much more like, say, Denmark, where I have lived. Anyhow, for the sake of convenience with a side of being able to limit the amount of sugar and saturated fat in my food, I eat out much less than I did 10 years ago.
It's a hard trade off. I would like to add that "we" waited for some of these things (except children) until after our finances had a strong start. I would even say that we hit "critical mass" in our finances which to me was just over 500K, when we were about 40 years old, before the new house and the nice new cars came into our lives. I call it critical mass in reference to "Bob Brinker's money talk". That was the amount that for me personally meant that all I needed to do was to leave it invested and retirement was funded in the future. That allowed us to spend more in the now. Live under your means and if you do long enough you can have most of what you want for the rest of your life.
If one must live in a housing complex; buy in the lower 50% of the neighborhood price range and make sure you are at the back of the neighborhood in a cul de sac.
Sound advice all around. Completely agree with finding the happy middle ground and being smart about the adjustments required. I actually considered all or most of all of the categories mentioned as I went into retirement. Hope folks take your advice to heart.
I would add work for yourself. After your get good at something, consider seeing if there is a market for consultants in this area. If so, and they consultants get paid well, do it part time and see if you can make it a full time job.
Common sense stuff. Bottom line is if you understand how math works and you can afford stuff and yet save for retirement at the same time, live life the way you want. Buy a car, eat out, live in a good spacious home IF you can afford that. You also only get one life. Imagine cutting your life for all this and playing the drum of 'I retired early at 45' and then dying at 47. I have known those kinds too. So bottom line is - find that balance and always remember affordability and math. And yes, thanks but no kids 😂. People misunderstand that the happiness of kids also comes with high expense and excessive bs kids bring. Especially with these new softies running around glued to social media for likes. So I disagree - no they do not bring 100% happiness.
Another great video, Erin! I feel that when you talk about a home. It's funny, I grew up in a 950 square foot apartment and now my wife and I have a 3,500 square foot home on .7 acres. However, I do find myself calling our home "average" I think that's more based on it is average, but it is average to our neighborhood. With all that said, we are better of for having it. We built ours in '14 and paid $390k and at the time that was a lot in Utah. Well, fast forward to '23 and that $390k is now worth $750k and with our 2.25% interest rate and my VA benefits, my payment is under $1,700. You can't get an apartment for that around here. Lay off the cars :) HAHA! I do the math and I know what my car payments would add, but I honestly do get joy from having and driving my car. I love it! They've always been my failure in life, I've had car payments everyday since I was 18. HAHA!
We tend to always think we are average - since we are probably average compared to what’s around us. And again - assume that this video was titled - except Rob 😂 when you are contributing so much to investments, it’s just fine to have your cars! You enjoy every moment with those cars 🚗 😂
I'd be willing to give up my job to retire earlier ... lol... I've also been able to reduce spending on clothes as my career progressed thanks to corporate world mostly abandoning suits... My shorts, t-shirts and flip-flops are much cheaper.
@@ErinTalksMoney I've been working from home since 2019, but our corporate office was shorts and t-shirts prior. Even our CEO is usually Jeans and a t-shirt/polo.
We are still working but retiring in our 50s very soon. We rarely eat out. Cook most all our meals. keep vehicles for 15+ years. Everything paid for. No one should go into retirement with a mortgage !! child out of the house and winning on their own. So our household expenses are low. We prefer to travel and spend money on having experiences over things.
Travel. I retired at 62 and could have retired at 59 if I hadn’t taken a few dozen great trips over my life. Some people put life on hold until retirement. I’m glad I didn’t do that because by the time he was 65 my husband was no longer able to travel. We’ve lived in a 1100 sq foot 1 1/2 bath house for 35 years and it’s been fine - and cheap making those great trips possible.
I gave up new cars and a fancy home. These tend to drain your bank account the fastest (or with a house, the longest) so we buy used vehicles and our house is older, but works for us. Don't need a huge house.
Erin, I agree housing is an important one to keep below your means. I think many folks that buy into a neighborhood that is at the top of their budget, then start that lifestyle inflation because their neighbor’s “The Jones” have the bigger car, pool, take big vacations and on and on. Stay in a less expensive neighborhood and The Jones in your hood spend less typically on all of the extras and it is easier for your to achieve your financial goals. I agree to live life along the way, but have some guardrails. Like not being able to spend $300 until you check with your spouse. Thanks for the great advice. Tony
Having watched your videos for so long now, the deeper lesson is to find as positive a cash flow situation as possible, then save, invest, and diversify that cash flow for years. The longer you live, the more likely you'll encounter a serious financial crisis or two. Saving and investing isn't an option to think about, it's a survival necessity. Once you've got the buffer room of a healthy emergency fund and growing nest egg, then it's take your foot off the gas and enjoy time....
Giving up kids to retire early could a viable option if your child is simply an idiot or overspending due to an unrealistic standard of living then turning to their parents to bail them out and serve as their ATM machine. This would impact your ability to retire unless you learn to say No. Helping them out occasionally during significant life events (i.e., job loss, illness, divorces, etc.) you're most likely going to provide some support to help them get back on their feet. That said, kids with special needs are a different story.
I'm not sure that it's giving up kids when they are adults. I'm continually amazed how many parents continue to enable bad financial decisions of their adult children. Perhaps it's guilt for not teaching them about finances. The latest data reported was 68% of parents made financial sacrifices to help their adult children. That's crazy to me.
The pandemic and the choice of taking the shot or not helped us reign in our spending and get our financial house in order. We have refrained from eating out as much and watching unnecessary spending.
I have two vehicles - both which I bought new - a 1995 Dodge Ram pickup with 350K miles. My other vehicle is a 2002 Chrysler 200. I haven't had a car payment in years.
I will admit this video made me chuckle a bit Erin because you have such great ideas to help reach an early retirement, but I feel like you will keep working even after you reach all your goals😂
Eating out is in the entertainment budget. That being said, I invest a lot in it. Easily $7,000 to $10,000 per year. Why? In Winter (due to SAD and cedar allergies) I have a hard time eating. If it takes eating out to eat then that is an investment in not having to visit doctor/getting ill. In better times I spend 2 hours per evening at least 5 days per week studying in order to make myself more marketable. Having 2 glasses of wine for 2 hours of study in a place I enjoy seems like a fair trade off. Savings is important, but maintaining career marketability makes even more sense even if inflation or other market factors change...especially for someone who wants to work into their 70s. I buy groceries but mostly for meals at work. More fun to fix for at least one other person and I am a breakfast/lunch person. Then they do the same for other days. I have a 33 year old "kid" that I am investing money into. She had a business before COVID, but that business dried up during that time. She is starting up again. I have been told I will get a portion when she is back to being profitable. I love my many pets. Am not getting any more as I believe it isn't responsible for me to have pets that I expect will outlive me. They are a pain and a joy. Large living space...I have ~2,500 square feet as a single person. I purchased when my daughter was still living with me. I rented before but moved to a career I felt was secure enough to purchase a house. Wanted a house maybe half that size for ~$120,000 for 2 bedroom 2 bath. Daughter made point that in the area I wanted to move to a 4 bedroom 2.5 bath was better for property value and general happiness. She was right. I can walk less than a mile to that place I study at and purchased home for ~$160,000 which is worth way more now. Quality of life. Half my bill is insurance and taxes so it will be a weight of over $600 even after mortgage is paid off. That being said, I love where I live. I would love to have a partner, but right now I do not have the energy to invest there. They have always been a drain. I expect I will decide to invest in one in the future, but right now I am investing in myself. It is a time and energy commitment in order to do it right. I don't currently feel I have the energy to invest there at this time. I will again in the future. I do need to sit down and look at my basic finances and where money is going out. Knew this was true and postponed until mid-March...hmmm...I guess now mid-April. If nothing else I need to make sure my daughter knows things in case I get ill, etc.
I retired at 50 and agree with everything you said. Avoid lifestyle inflation, find the right mate (the wrong one can be very expensive). I am 68 now, and have owned 4 cars, and only ever sold them when moving internationally. I will claim Social Security in 2 years, glad that I waited.
My wife and I started our married life very simply. My first house, bought in 1995, had a mortgage payment of less than $500 per month. We are a 2 income family, and this allowed us to live off one income, and invest/save the rest. Others, our same age, wanted the same lifestyle their parents had, right from the start. After 10 years of living simply, and within our means, we were able to move to a larger house, with land, and pay off that home fully in 5 years. Of course, everyone said, "oh, how lucky you 2 are"....
I would not give up dogs, horses, living in the country, my wife staying home with our children until they were in college, private school for our children, new cars, racing motorcycles on weekends, new homes we lived in, vacations, business travel world wide, etc as those were part of our life. Now will retire next year at full retirement age with continued involvement with four grandsons.
Giving up what you want in a home is a big ask. When you retire, you most likely spend the majority of your 40-hour work week, at home. I think giving up things in order to retire early, is a mistake in general. You don't want to START retirement with a tight budget. It won't get better, for most.
I don't think the point is to suffer to prepare for retirement. There can be middle ground. If you are living within your means then the transition to retirement is not much of a transition at all.
@Martin P I think we're saying the same thing. Anyone preparing (properly) for retirement is living below their means, their retirement contributions are coming from somewhere. I went into retirement with the same budget as when I was working, so there was nothing to give up. That's the ridiculous thing about most retirement calculators. They base your retirement needs based on your income (80% of your working income). Should be based on spending (budget???).
I think your list was much more realistic. As you stated, some other items on the original list just didn't seem to be practical for consideration when compared to retiring early. It's a personal choice, but one that I don't think I would have contemplated. Enjoy the nice weather this week!!!
Thank you. Just what I needed to watch. My wife and I run a farm down south, a few rentals & a little saved up in the bank. We’re aged and got a few more years to retire. We’re known local farmers. I'd really appreciate you go LIVE and talk about how to ‘safely’ earn passive income retire comfortably.
You’re actually losing more saving in a bank. To create consistent passive income after retirement, diversification is key but first, you should be aware of your goal. I mean, how fast are you looking to earn, long term, short term, dividend paying or high interest because to grow a business financial & risks are essential. This is why basic knowledge alongside experience is prominent .
Eris - Excellent perspective on what we should give up. We always bought homes that were in good school districts and a full set below what my peers were spending. Bought new cars but kept them from 10-15 years (nothing upper end - like a Toyota Corolla. Helped the kids with college expenses so they had no debt. Retired at 60 now ten years in and it's been wonderful. Housing and cars are the big ones. I think over the last 20 years younger individuals love to go out to eat and it is prohibitive. Enjoy our videos and did suscribe. Keep doing what you adre doing Erin!! Oh Yeah .......we also order water when going out!
DIning out is my last thing I would give up in retirement.. as I work I’m to busy to dine out.. can dine out only on Saturday now.. when retired I want to dine out 3-4 times a week for dinner… a dinner out with my wife is a fun and good time experience… its part of my retirement plan.. I rather cut my car from a lexus to a toyata in retirment then dining out for dinner :) in retirement just need a car that gets me around.. enjoyed ur video...
Going from a Lexus to a Toyota can probably get you a A LOT of dinners! I hope you and your wife are gearing up for a wonderful retirement one day, until then I hope you enjoy the work you do!
I have taken to waiting until your video has been available for a couple of hours so I can see the responses to your videos. They are always interesting just like your videos.
Who is eating out 2-6 times a week 😮 Is this Wawa or Japanese takeout ? 😅 My husband and I are talking about date nights once every two months to cut back ! Save up towards vacations every other year. I'm getting older. I'm tired. And I like my bed .... My foot soak .... And my kitchen .
What I am willing to give up to retire early Children - not just to retire early, but kids aren't for me. I dont need that responsibility, and having kids is the worst thing I could do to contribute to global warming when you consider they will have grandkids, greatgrandkids... etc, making my environmental footprint neverending. Besides, my brothers had plenty of kids for me. So I can hang out with my neices and nephews, and send them home when they annoy me, lol. An expensive house - we got a house at 80k at 2.25% (bought in 2020) that has all our needs, well below average cost of house. Our monthly payment with everything in escrow is about $550. Thats as good as it gets. A new Car - I drive a paid for 2009 Hyundai Sonata. My partner has epilepsy and cant drive, so its our only car. Im gonna try and get another five years out of it. I have nobody to impress with an expensive car, and anyone impressed by one I wouldn't want to impress. Various luxury goods - I never cared about status symbols in general. What I'm not willing to give up - pets - I love my three cats my video game collection. Im a huge gamer, and will not give it up, got systems going all the way back to Atari in my collection. That said, I've shopped for deals for everything (been to lots of garage sales) and never pay full price. Eating good food - I like eating good stuff too much.
I would be open to leaving the US to retire early.🙂
Feel the same about Norway. Would be nice to retire somewhere sunny, warm and cheap. Could go out and eat every day for the same cost as being cheapskates here😅
To me, the key message is to continuously live below your means and take advantage of all your Company benefits (401k, company match, HSA, etc). With the excess pay each month...”invest in what you know and watch it grow”! Thanks for another insightful video filled with great tips. And, yes, I walk the talk and have reached financial freedom before 50. :)
I push hard for my nephews, nieces, and other relatives and friends to get Roth IRAs, starting with even a modest contribution. This is a no-brainer to me after they get their 401k match, but I have found it impossible to convince many of them, even when I offer $1,000 for them to be able to use money from their paychecks to start.
My wife and I are 9 days apart in age. We're both in our second marriage (20 years and going strong now). I had full intentions of retiring at 65 years of age and my wife at the time not certain if she was going to follow suit. I had 21 months to go (after a 38 1/2 year career) and my company offered me a buyout! I could work 3 more months and then get 12 months pay, 3 months more cash for medical insurance plus a 8% anticipated bonus! I jumped on my wife's company medical benefits (because I didn't qualify for Medicare yet) and took the deal! At 65 my wife retired and took a 6 month contract job with her company (getting paid double her hourly pre-retirement rate AND working mostly from home) and at the end of 2019 she quit working completely. The stars certainly aligned for us!
Hi Erin, great video! You brought up a lot of good points. Two of your points have helped me. Eating out less and buying less groceries ( none necessities like cookies and different types of potato chips, etc ) Having cut back on those, have saved me money. And speaking of pets, how’s Peanut doing? I haven’t seen him in your videos lately. And I miss your outtakes 😞 Have a great week😊
Peanut is living his best life 😊 He's been hangout by the front of the house while I film so he can sunbathe. I will try to bring the outtakes back at some point!
I would give up a lot to be financially stable. And in a sense, I am. But that’s okay, because I’m taking care of my future self!
I didn't give up eating out to retire early. Yes, I already did retire early. 52. I gave up the 5 BR house 3 car garage (including the maintenance, 5 figure property taxes and everything else!) all full of stuff and a new car every 3 years. Actually, downsizing was very freeing and liberating. Accumulated a lot of stuff through my life and reality it didn't do much for me. I am single and agree it was harder to retire early being single.
If you live in certain specific areas, you can live without a vehicle. And certainly housing is your largest expense, so the savings can be huge.
Absolutely!
We’ve been giving up on major vacations, cut dining out and spending on “wants” by 70-80%. We’ve been doing this since we bought the house 5 years ago, 2-3 more years till we pay off the house and we get to loosen the belt a little. Some none negotiables - bought a new dependable modest fuel efficient hybrid car to drive to the ground (1 car house hold), health (doctors, wellness, quality groceries), investment for future (retirement and investments).
A better question for me would be, What haven't I given up? My son and I eat out once a week and take turns paying. I cook from scratch at home using pantry staples I buy on sale or at least at the lowest price possible. I am debt free and live below my means. I am 59 and I still don't know if I will ever be able to retire. The biggest obstacle is insurance. I basically work for insurance.
I hope you can enjoy retirement one day 😊 I’m glad you and your son get together every week
I think another thing you can "give up" is some of your free time - e.g. to get a side hustle or put in the extra effort at your main job to get those promotions. The latter is the path I chose, increasing my income quite nicely over long periods of time - I'm making about 4x what I made in 2006. Just like with everything financial, you need to be very consistent, very patient, and accept that just like with markets, you'll have setbacks in the way, too. If you don't let your expenses get out of control, that'll start adding up.
GREAT point! That is so true! A side hustle can make a world of difference!
Never was into new, fancy cars. I'd say that's helped us a lot
HUGE money saver!
Staying single and childless is a very powerful move for a man to make. Hands down.
I recently agreed to take a buyout from my employer and retire 3 years earlier than I had planned. My wife and I plan to delay some of the more expensive trips abroad and travel more in-country for the first few years of retirement. Once we see that our investments are keeping up with our expenses, we can reintroduce the occasional "bucket list" trip into our vacation budget. I also gave up on buying my dream retirement vehicle and settled for a gently used vehicle at about half the price. I consider my time to be priceless, so these "sacrifices" were an easy decision for me.
A lot of people feel obligated to spend more for a house than they would like because they want a quality school system for their kids - its not just about square footage. But something that most people could give up - vices!! The beer, wine, cigarettes, whiskey, lottery tickets and trips to the local casino can destroy your finances and a lot more in your life. And those are the legal vices....
Great points!!
Delaying gratification is a big deal in saving for the future. Few people understand the miracle of compound interest and investing early. Investing early in a dividend growth ETF or fund and reinvesting dividends can change a life.
Peace, is being in a place to retire at any time you wish …. No debt and living below your means … total control … or as much as possible …. Thus, from age 62 on, I’m good to go … thanks !!!
I'm willing to give up my job but currently the numbers do not work out for me to retire early due to be dumb and starting late in saving for early retirement.
Early retirement is my expertise - I retired at 55 in 2011. I did in fact cut back on dining out after I retired. We decided we would keep our monthly new restaurant explorations down to $100 for the two of us. I also quit my Napa Valley wine club and kept my wine buying to the $12-20 per bottle range. Otherwise, I didn't have to give up much and found I was spending less than expected after the first year of retirement. We never had kids but we did have dogs and I can't see how pets (within reason) is going to impact your retirement goals. We bought one home (950 sq ft) and paid it off on time in 30 years. It helps if you don't have kids and you stay employed in the same area all that time. The point is we remodeled the house but we didn't keep buying bigger and bigger houses. We had 2 cars but we kept them 7-10 years and always bought modest priced vehicles. My mother taught me the 24 hr rule when I was a kid. It probably saved her a lot of money.
This is such a good list! All are very actionable. Thank you for sharing!
I wouldn't give up my wife's happiness.
Awe , great answer!
The 5 no's. 1 no spouse. 2 no children. 3 no pets. 4 no debt. finally...5 no job.
That’s A LOT of no’s! As long as you are happy!! 😊
9:45 my issue with this is, if you're a renter, you are enslaved to market rates. I can't afford to buy a house and when rent continues to rise I feel stuck. I shouldn't have to work 16 hours a day on my 40 year old knees just to put a roof over my head because of investor greed. 😑
I am guessing that you must be American to have to put up with such awful work/life balance issues? The saddest part of seeing your post is I cannot really think of any constructive suggestions I could give to break your 'chains' that keep you slaving away to stay in the same situation.
About all I can conjure is that maybe you can see if you can get a friend or family member to share the accommodation costs?
It's hard to give up your private space but that's how most of us ordinary folks here in the UK started out back in the 70's - leave the parental home and move in with three to five other people in a shared house (usually a house that these days would be condemned as unfit for human habitation :)).
I can relate to the renter investor greed. There was a take over a year ago from greedy investor. I had to look for an affordable rental. It was all very stressful & my employer decided to eliminate jobs which mine was one of them. 😔 Luckily I found an affordable rental & could fall back on some retirement money. Unfortunately a year later still unemployed due to this job market. I have never spent money frivolously or above what I can afford.
What my husband and I have NOT chosen to give up on our journey towards financial independence:
1. Having kids! (We have six!)
2. Travel!
3. A safe comfortable home
(For us, family, faith, and travel are the richness of life and could never be sacrificed)
We HAVE given up:
1. Any car that would require a car payment (you last video shows the massive financial gain from this decision)
2. Upgraded homes/too large homes/gated communities with big HOA dues
3. Eating out ( we eat out very infrequently)
All these are of course very personal choices, but for our values this is the combo that works for us!
I love this list!! Thank you for sharing!!
"...It's a normal home, 1700 sq ft, not large ..." 😒 Me, living in my 850 sq ft, 2 bed/1 bath, 740K house in LA...
I lived in 400 sq ft for over a decade. This place felt HUGE to me when we moved in!! Still does in a lot of ways, definitely have empty rooms. I meant compared to the typical average size home in the US, which is well over 2,500 sq ft, it’s not large.
@@ErinTalksMoney Haha, not worries, I know what you meant, I'm just poking fun...
We had 2 kids, always had pets, had a 2500 Sq ft 4 bedroom house, had 4 modest vehicles, contributed regularly to our kids' 529 plans, and while I was working I had lunch at the company cafeteria every day (I guess that counts as dining out?) but was still able to retire at 60 and my wife retired 2 years later when she turned 55. What we gave up was lavish vacations. We had friends and neighbors who took the whole family somewhere they had to fly for a week at spring break and again during the summer. Sometimes throwing in another week at Christmas. We were lucky to live in a city about 250 miles from Chicago, Minneapolis, Omaha, and St. Louis, so we did a lot of long weekend driving vacations. We stated at modest hotels and ate a lot of pizza - and the kids loved it. We went to zoos, water parks, solariums, and amusement parks. When the kids got old enough to remember it, we went to Disney World and a Disney cruise. We also went to Mexico one year for Thanksgiving, but that was it for "big" vacations. Doing that enabled us to put more money into our 401(k)s and build that retirement nest egg. We asked the kids when they got older, and they said they never felt like they missed out on anything.
Sounds like a life well lived!
There are financial things you give up when retiring early, but you really have to think about things you give up when you retire at any age: having colleagues to greet you when you arrive at work, working together on projects, group lunches, parties, customer visits, business travel (and free frequent-flyer travel), other perks specific to your company (health care, stock options, clubs, etc.). It's good to be able to retire when you want, but I think you shouldn't retire if you enjoy your job. Freedom to do whatever you want whenever you want is highly overrated.
Great point!! I love what I do, so I definitely don’t want to retire early 😊
There is traditional retirement, as it is commonly understood, and there is financial independence where you could stop work at any time. I would not agree that doing what you want is overrated. You are doing what you want by continuing to work even though you may not need the money. The rest of us have found satisfying activities that aren't traditional paid work but we are busy and fulfilled just the same.
@@martypoll Perfect Point Marty. I am financially independent and choose to work part time and then have the freedom to spend more time with family and friends while also volunteering in the community. It’s all about a personal choice to,live your life to fullest with purpose. No need to work for money and report to a boss with all the pressure to perform (not very fulfilling to me).
people who believe that the freedom to do whatever you want whenever you want is highly overrated simply have never been in that situation. I would never consider any of the things you mentioned as benefits I'd be giving up. Then again, when I was working I was a terrible employee, because I chose not to live to work.
I would give up pets. Not forever but for a while for sure.
I hear that, not forever 😊
Hi Erin, great video. I binge watched like 10 videos right now. You have such a soothing voice and content delivery. It feels like a friend talking to me and giving me all this wealth of knowledge. Keep up the great work and please don't change the format of your videos.
Thanks so much!! Welcome to the channel! 🙏
My food at home, is much healthier than what, is available at restaurants. However I don't like shopping, so I throw a lot of food out.
I LOVE grocery shopping 🛒 literally LOVE it!!
Big houses are generally a waste; no problem there. I'd be happy to get down to just one car too.
Plus, I don't want to have to clean a big house 😂
@@ErinTalksMoney that's what a maid and roomba are for🤣
My wife, my two children, and I share a single vehicle. We are planning on moving somewhere where we don't need a vehicle at all, but for now it isn't an option. I wonder how many people would be willing to give up their vehicle if they had good public transit.
I have very convenient public transit access, but don't readily use it because it takes more time and I dislike the stress of changing buses or trains to meet the shortest transit times. It's nice when you can find a job that requires no transfers, but that is often not the case.
@@hanwagu9967 It sounds like you have public transit access, but I would question you calling it "very convenient". My wife came here as an international student and never drove before moving to the US. She said she didn't even look at a bus schedule because buses came every 3-5 minutes. That's what very convenient public transit looks like in several countries around the world.
I retired from Federal Reserve at 51. I agree with you. I actually believe you can enjoy all the activities you outlined in your video…the key is starting early and being consistent in your savings and investing. Really the only thing I gave up was a larger Nest egg and a larger pension by not waiting until i was 60 and certainly that wasn’t worth it to me. Once I accumulated a large enough portfolio, I knew I was done. Now I’m relying on passive Dividends and options income to pay the bills. Life is sweet.
I feel like a lot of people who eventually pay off their car note after 3-5 years think "hey I now have extra money to spend on something else I want" and find more indulgences, rather they've already lived without that "extra money" for those 3-5 years, so just KEEP making that car payment in the form of SAVING AND INVESTING the money instead 👍
I would not, in fact, give that up to retire early (except I already don't have pets). 😂I still live well below my means, however! I feel absolutely no shame getting one or two take-out coffees a day, or taking the kids out for a treat, because I'm still saving 30% of my income. If you include the job contributions to my DP Pension and my OT pension, I'm saving something mathematically more like 60%.
I should note, my car is ten years old, and I plan on driving it another 8-9 years (I do all my own work and stay on top of the rust issue).
One important rule I've always had was not to give an "F" about the Jones'. Also, I don't enjoy paying $30 for a plate of generally unhealthy food at a resto or daily fast food lunches.
Love that! And I always feel like I make better food at home anyhow 😂
yeah, i like to walk around the neighborhood and judge people for not being able to park in their garages, and point out things on their houses needing repair.
@@hanwagu9967 Lol, also it's funny how people will shelter their junk in their garage and leave their expensive vehicles outside in the weather.
My wife and I are in our early 40's, and after we moved to our new home here in WY, my wife was able to leave her job to stay home with the kids. I get to work from home (have for 7+ years now), so I am thrilled to get to play with the boys daily. That is not where we scrimped at all :)
We have heavily limited our:
Going out to eat
Extravagant vacations (we are homebodies by nature)
New cars (generally buy used, and both are paid off, and paid either in cash immediately or paid off very rapidly)
I am planning on retiring around age 58-60, depending on how life goes, so a bit early but not bad, considering at age 28 I was near bankrupt, and didn't really get back to a net worth of zero until age 30 when we got married.
Investing heavily, keeping debt to a minimum, not financing cars, and some good real estate investments over the past 12 years have really gotten us back on track to retire on time or even "early".
Keep cars for a long time; eat out much less and never order alcohol eating out; minimize expensive vacations; buy/rent less home than you can afford; and be disciplined with consistent savings or 10%+ of income. But kids? Pets? Kids and animals give life so much meaning for most people. Worked for us as regular income people who ended up with $1mil+ net worth at age 60...
We made living below our means a way of life. So in my mind, we didn’t give up anything. We just didn’t allow lifestyle creep to become a problem. We’re retiring at 54 and 55 (retiring July 1st) so a little early. One thing I wanted to add was our first house was our largest at 2500 sqft but 5 homes later, our current house is 1400 sqft.
Congrats!!! Happy early retirement!!
I was thinking that for us, most of these were not a question of "giving up" but preference. We benefited greatly from a tap water taste on a champagne income. Hubby had a big house and a big SUV when we met, but was otherwise frugal to cheap. I had a small condo and a small hybrid car, but was spending a lot at coffee shops and restaurants. I told him I didn't want to clean all those bathrooms and he told me he didn't like coffee, so he moved in with me and with his company, I went out less. Like not having kids and pets, the decisions were not based on finances, but they sure were financially beneficial decisions.
us DINKS with dog live in 5,000sqft house and don't even go in the basement or second floor, since we have a main floor master. Would I give it up to retire early? Well, since I retired early, I guess not. There are legitimate financial reasons for us having purchased a larger home than we actually need, so I think there needs more context to the generalization. Primary drivers were location and resale, and the fact we have a 30yr 2.375% fixed. First and foremost, the location is convenient to avoid all the massive traffic commute to work. We are also literally wedged between two high rent towns but outside of the those town boundaries, which effectively halfs our property taxes in relation to those towns. The house is also situation in a highly accessible highway and mass transit station location, area for the most desirable schools, easy access to all those outdoor and city living crap, and the house has a desirable house size for families wanting to be in the desirable school and accessibility area. Most importantly, even though surrounding areas suffered the same market drop in 2008, ours did not and has continued to appreciate (nearly doubled in 13years). So, there are legitimate, good financial reasons for buying a larger house than you would actually need. When my sugga momma retires and we no longer need the close to work location, then we'll sell and downsize.
Since our retirement income without having to touch any savings or retirement savings will be about 2/3 of our active working income, we are really not actively giving up anything to retire early. This doens't mean we didn't tighten belts earlier. We always have had a goal of only living off no more than 50% of one of our incomes and plowing the rest of net into savings. We currently shoot for 1/3 taxes, 1/3 savings, 1/3 spending. Even so, I abhor things like paying for food or beverage delivery, we do eat out on weekends, but cook breakfast and dinner and pack lunches, i do my own lawn work, etc. I can't see paying other people to do things that I can do myself, unless I get really lazy. Even then, I regret paying someone like a painter, because I know that I could have done a better job.
Early retirement is kinda scary though...sitting around doing nothing but watching tv shows and playing video games...probably get bored of traveling after a while too. Vacations and flights wear me out sometimes. And then they are "lean fire" meaning they don't even how a lot of extra for traveling or extravagant lifestyle.
I know a lot of older people get sick and die when they retire. You have to find a new purpose. Look at the youtube channels of Asian guys who have accomplished early retirement...they're content starts focusing philosophy of "what is the purpose of mankind? If we don't work...what is our purpose?" etc.
3:00 Don't order drinks out - This tends to save about $2.50 - $3.50 per person at a restaurant and the savings don't just stop there because you also save when you figure you TIP percentage for the lower total !
Thanks - - I recently discovered your videos and enjoy your presentation style and pragmatic, balanced content.
For those who live near their friends or relatives, I can see that there is a trade-off regarding dining out used as a social activity. It may also be killing restaurants and changing that part of our society, making us much more like, say, Denmark, where I have lived. Anyhow, for the sake of convenience with a side of being able to limit the amount of sugar and saturated fat in my food, I eat out much less than I did 10 years ago.
It's a hard trade off. I would like to add that "we" waited for some of these things (except children) until after our finances had a strong start. I would even say that we hit "critical mass" in our finances which to me was just over 500K, when we were about 40 years old, before the new house and the nice new cars came into our lives. I call it critical mass in reference to "Bob Brinker's money talk". That was the amount that for me personally meant that all I needed to do was to leave it invested and retirement was funded in the future. That allowed us to spend more in the now. Live under your means and if you do long enough you can have most of what you want for the rest of your life.
If one must live in a housing complex; buy in the lower 50% of the neighborhood price range and make sure you are at the back of the neighborhood in a cul de sac.
Can you still prepare a meal for $4??
And for less
Sound advice all around. Completely agree with finding the happy middle ground and being smart about the adjustments required. I actually considered all or most of all of the categories mentioned as I went into retirement. Hope folks take your advice to heart.
I would add work for yourself. After your get good at something, consider seeing if there is a market for consultants in this area. If so, and they consultants get paid well, do it part time and see if you can make it a full time job.
Bike to work and live in appartment have me saving 80% of sallary. Feel I have all I need to be happy.
Common sense stuff. Bottom line is if you understand how math works and you can afford stuff and yet save for retirement at the same time, live life the way you want. Buy a car, eat out, live in a good spacious home IF you can afford that. You also only get one life. Imagine cutting your life for all this and playing the drum of 'I retired early at 45' and then dying at 47. I have known those kinds too. So bottom line is - find that balance and always remember affordability and math. And yes, thanks but no kids 😂. People misunderstand that the happiness of kids also comes with high expense and excessive bs kids bring. Especially with these new softies running around glued to social media for likes. So I disagree - no they do not bring 100% happiness.
Everyone has their own idea of what a happy life looks like! And you are so right, so much of it is common sense!
Another great video, Erin! I feel that when you talk about a home. It's funny, I grew up in a 950 square foot apartment and now my wife and I have a 3,500 square foot home on .7 acres. However, I do find myself calling our home "average" I think that's more based on it is average, but it is average to our neighborhood. With all that said, we are better of for having it. We built ours in '14 and paid $390k and at the time that was a lot in Utah. Well, fast forward to '23 and that $390k is now worth $750k and with our 2.25% interest rate and my VA benefits, my payment is under $1,700. You can't get an apartment for that around here.
Lay off the cars :) HAHA! I do the math and I know what my car payments would add, but I honestly do get joy from having and driving my car. I love it! They've always been my failure in life, I've had car payments everyday since I was 18. HAHA!
We tend to always think we are average - since we are probably average compared to what’s around us. And again - assume that this video was titled - except Rob 😂 when you are contributing so much to investments, it’s just fine to have your cars! You enjoy every moment with those cars 🚗 😂
I'd be willing to give up my job to retire earlier ... lol... I've also been able to reduce spending on clothes as my career progressed thanks to corporate world mostly abandoning suits... My shorts, t-shirts and flip-flops are much cheaper.
Haha 😂 since I work from home I live in sweats - definitely save money there
@@ErinTalksMoney I've been working from home since 2019, but our corporate office was shorts and t-shirts prior. Even our CEO is usually Jeans and a t-shirt/polo.
We are still working but retiring in our 50s very soon. We rarely eat out. Cook most all our meals. keep vehicles for 15+ years. Everything paid for. No one should go into retirement with a mortgage !! child out of the house and winning on their own. So our household expenses are low. We prefer to travel and spend money on having experiences over things.
Good luck, you are so close to retirement!!! 😊
Travel. I retired at 62 and could have retired at 59 if I hadn’t taken a few dozen great trips over my life. Some people put life on hold until retirement. I’m glad I didn’t do that because by the time he was 65 my husband was no longer able to travel. We’ve lived in a 1100 sq foot 1 1/2 bath house for 35 years and it’s been fine - and cheap making those great trips possible.
Travel is invaluable 😊
Another home run video!
Thanks Paul!
One thing it definitely wouldn’t be is not having kids.
I gave up new cars and a fancy home. These tend to drain your bank account the fastest (or with a house, the longest) so we buy used vehicles and our house is older, but works for us. Don't need a huge house.
I agree!
Erin,
I agree housing is an important one to keep below your means. I think many folks that buy into a neighborhood that is at the top of their budget, then start that lifestyle inflation because their neighbor’s “The Jones” have the bigger car, pool, take big vacations and on and on.
Stay in a less expensive neighborhood and The Jones in your hood spend less typically on all of the extras and it is easier for your to achieve your financial goals.
I agree to live life along the way, but have some guardrails.
Like not being able to spend $300 until you check with your spouse.
Thanks for the great advice.
Tony
Checking with the spouse is a good one!
Having watched your videos for so long now, the deeper lesson is to find as positive a cash flow situation as possible, then save, invest, and diversify that cash flow for years. The longer you live, the more likely you'll encounter a serious financial crisis or two. Saving and investing isn't an option to think about, it's a survival necessity. Once you've got the buffer room of a healthy emergency fund and growing nest egg, then it's take your foot off the gas and enjoy time....
That’s a pretty good summary of my philosophy 😊
Giving up kids to retire early could a viable option if your child is simply an idiot or overspending due to an unrealistic standard of living then turning to their parents to bail them out and serve as their ATM machine. This would impact your ability to retire unless you learn to say No. Helping them out occasionally during significant life events (i.e., job loss, illness, divorces, etc.) you're most likely going to provide some support to help them get back on their feet. That said, kids with special needs are a different story.
I'm not sure that it's giving up kids when they are adults. I'm continually amazed how many parents continue to enable bad financial decisions of their adult children. Perhaps it's guilt for not teaching them about finances. The latest data reported was 68% of parents made financial sacrifices to help their adult children. That's crazy to me.
We have a 3 bed 2 bath 1500 sq ft house, I think we would do fine with a 2 bed 1.5 bath but my wife may not agree 😉
As long as it has a 1.5 bath! 😂 That spare bathroom makes a world of difference
I have given up going out to dinner , no longer cable TV,
Pretty sure I can't give away my kids
The pandemic and the choice of taking the shot or not helped us reign in our spending and get our financial house in order. We have refrained from eating out as much and watching unnecessary spending.
I’m I bet the pandemic did that for a lot of people- I wonder how many stuck with it though
1700 square feet is not a small home.
I have two vehicles - both which I bought new - a 1995 Dodge Ram pickup with 350K miles. My other vehicle is a 2002 Chrysler 200. I haven't had a car payment in years.
I will admit this video made me chuckle a bit Erin because you have such great ideas to help reach an early retirement, but I feel like you will keep working even after you reach all your goals😂
That’s because I love what I do! Why retire when you love it!?! 😊
@@ErinTalksMoney For sure!
Eating out is in the entertainment budget. That being said, I invest a lot in it. Easily $7,000 to $10,000 per year. Why? In Winter (due to SAD and cedar allergies) I have a hard time eating. If it takes eating out to eat then that is an investment in not having to visit doctor/getting ill.
In better times I spend 2 hours per evening at least 5 days per week studying in order to make myself more marketable. Having 2 glasses of wine for 2 hours of study in a place I enjoy seems like a fair trade off. Savings is important, but maintaining career marketability makes even more sense even if inflation or other market factors change...especially for someone who wants to work into their 70s. I buy groceries but mostly for meals at work. More fun to fix for at least one other person and I am a breakfast/lunch person. Then they do the same for other days.
I have a 33 year old "kid" that I am investing money into. She had a business before COVID, but that business dried up during that time. She is starting up again. I have been told I will get a portion when she is back to being profitable.
I love my many pets. Am not getting any more as I believe it isn't responsible for me to have pets that I expect will outlive me. They are a pain and a joy.
Large living space...I have ~2,500 square feet as a single person. I purchased when my daughter was still living with me. I rented before but moved to a career I felt was secure enough to purchase a house. Wanted a house maybe half that size for ~$120,000 for 2 bedroom 2 bath. Daughter made point that in the area I wanted to move to a 4 bedroom 2.5 bath was better for property value and general happiness. She was right. I can walk less than a mile to that place I study at and purchased home for ~$160,000 which is worth way more now. Quality of life. Half my bill is insurance and taxes so it will be a weight of over $600 even after mortgage is paid off. That being said, I love where I live.
I would love to have a partner, but right now I do not have the energy to invest there. They have always been a drain. I expect I will decide to invest in one in the future, but right now I am investing in myself. It is a time and energy commitment in order to do it right. I don't currently feel I have the energy to invest there at this time. I will again in the future.
I do need to sit down and look at my basic finances and where money is going out. Knew this was true and postponed until mid-March...hmmm...I guess now mid-April. If nothing else I need to make sure my daughter knows things in case I get ill, etc.
I'm willing to give up having a family *until* I reach financial independence. Luckily, I'm a guy so I can get away with that.
Admittedly I did that too!
@@ErinTalksMoney ladies can do it too then!
I retired at 50 and agree with everything you said. Avoid lifestyle inflation, find the right mate (the wrong one can be very expensive). I am 68 now, and have owned 4 cars, and only ever sold them when moving internationally. I will claim Social Security in 2 years, glad that I waited.
My wife and I started our married life very simply. My first house, bought in 1995, had a mortgage payment of less than $500 per month. We are a 2 income family, and this allowed us to live off one income, and invest/save the rest. Others, our same age, wanted the same lifestyle their parents had, right from the start. After 10 years of living simply, and within our means, we were able to move to a larger house, with land, and pay off that home fully in 5 years. Of course, everyone said, "oh, how lucky you 2 are"....
My 24 hour rule ends up being a month rule, LOL.
😂 I can totally relate to that!
I would not give up dogs, horses, living in the country, my wife staying home with our children until they were in college, private school for our children, new cars, racing motorcycles on weekends, new homes we lived in, vacations, business travel world wide, etc as those were part of our life. Now will retire next year at full retirement age with continued involvement with four grandsons.
Give up having kids to retire early? If you're willing to do that, you probably don't actually want to have kids in the first place.
Also, lumping kids and pets together is really weird. :-)
Haha 😂 I thought the same thing, but it’s what the survey did so I followed suit for the presentation
Giving up what you want in a home is a big ask. When you retire, you most likely spend the majority of your 40-hour work week, at home. I think giving up things in order to retire early, is a mistake in general. You don't want to START retirement with a tight budget. It won't get better, for most.
I hear you, probably not fun to feel like you are scrimping on by
I don't think the point is to suffer to prepare for retirement. There can be middle ground. If you are living within your means then the transition to retirement is not much of a transition at all.
@Martin P I think we're saying the same thing. Anyone preparing (properly) for retirement is living below their means, their retirement contributions are coming from somewhere. I went into retirement with the same budget as when I was working, so there was nothing to give up. That's the ridiculous thing about most retirement calculators. They base your retirement needs based on your income (80% of your working income). Should be based on spending (budget???).
I think your list was much more realistic. As you stated, some other items on the original list just didn't seem to be practical for consideration when compared to retiring early. It's a personal choice, but one that I don't think I would have contemplated. Enjoy the nice weather this week!!!
Great video Erin ! We didn't eat out often and when we did it was diner style . We lived in the same home for 35 years also . Love our dog , couldn't
I am a water drinker too!
I retired early at 38 comfortably. I gave up limited dining out, pets and no kids
Congratulations!!
Why retire early? Doing nothing gets old quick.
i don't think so. doing nothing seems to take up more time than work ever did.
We don't do nothing. We do what we want.
Thank you. Just what I needed to watch. My wife and I run a farm down south, a few rentals & a little saved up in the bank. We’re aged and got a few more years to retire. We’re known local farmers. I'd really appreciate you go LIVE and talk about how to ‘safely’ earn passive income retire comfortably.
You’re actually losing more saving in a bank. To create consistent passive income after retirement, diversification is key but first, you should be aware of your goal. I mean, how fast are you looking to earn, long term, short term, dividend paying or high interest because to grow a business financial & risks are essential. This is why basic knowledge alongside experience is prominent .
Eris - Excellent perspective on what we should give up. We always bought homes that were in good school districts and a full set below what my peers were spending. Bought new cars but kept them from 10-15 years (nothing upper end - like a Toyota Corolla. Helped the kids with college expenses so they had no debt. Retired at 60 now ten years in and it's been wonderful. Housing and cars are the big ones. I think over the last 20 years younger individuals love to go out to eat and it is prohibitive. Enjoy our videos and did suscribe. Keep doing what you adre doing Erin!! Oh Yeah .......we also order water when going out!
Thanks 🙏 for sharing - and subscribing! Cheers with water of course 😊
I like what you said and how you said it.
Thanks!
Not all or nothing for me too….how about give up kids during their teenage years thru college. I’m kidding, of course.
😂😂😂😂
I'm giving up kids to retire early. It helps because I don't want any. My pets make me too happy to give up. I'd rather stop eating out.
😂 easy to give it up when you don’t want it!!! I’m with you all the pets!!
DIning out is my last thing I would give up in retirement.. as I work I’m to busy to dine out.. can dine out only on Saturday now.. when retired I want to dine out 3-4 times a week for dinner… a dinner out with my wife is a fun and good time experience… its part of my retirement plan.. I rather cut my car from a lexus to a toyata in retirment then dining out for dinner :) in retirement just need a car that gets me around.. enjoyed ur video...
Going from a Lexus to a Toyota can probably get you a A LOT of dinners! I hope you and your wife are gearing up for a wonderful retirement one day, until then I hope you enjoy the work you do!
Great video Erin! Good tips and excellent delivery.
Thanks so much!
I have taken to waiting until your video has been available for a couple of hours so I can see the responses to your videos. They are always interesting just like your videos.
As long as you are still watching, that makes me happy Bryan! 😊
Who is eating out 2-6 times a week 😮
Is this Wawa or Japanese takeout ?
😅
My husband and I are talking about date nights once every two months to cut back !
Save up towards vacations every other year.
I'm getting older. I'm tired. And I like my bed .... My foot soak .... And my kitchen .
What I am willing to give up to retire early
Children - not just to retire early, but kids aren't for me. I dont need that responsibility, and having kids is the worst thing I could do to contribute to global warming when you consider they will have grandkids, greatgrandkids... etc, making my environmental footprint neverending. Besides, my brothers had plenty of kids for me. So I can hang out with my neices and nephews, and send them home when they annoy me, lol.
An expensive house - we got a house at 80k at 2.25% (bought in 2020) that has all our needs, well below average cost of house. Our monthly payment with everything in escrow is about $550. Thats as good as it gets.
A new Car - I drive a paid for 2009 Hyundai Sonata. My partner has epilepsy and cant drive, so its our only car. Im gonna try and get another five years out of it. I have nobody to impress with an expensive car, and anyone impressed by one I wouldn't want to impress.
Various luxury goods - I never cared about status symbols in general.
What I'm not willing to give up - pets - I love my three cats
my video game collection. Im a huge gamer, and will not give it up, got systems going all the way back to Atari in my collection. That said, I've shopped for deals for everything (been to lots of garage sales) and never pay full price.
Eating good food - I like eating good stuff too much.
I wish I had three dogs - correctly only have one 🐶