Many don’t think about their retirement funds until it’s too late. This means that money that could be put into savings and investments is spent frivolously. We take a look at 15 things you can stop doing so that you can thoroughly plan for early retirement:
Credit Card Costs
It is tempting to use credit cards for everyday purchases, but with high-interest rates, debt quickly accumulates. Use credit cards sparingly and pay off the balance each month.
Bank Fees
From monthly maintenance to ATM and overdraft charges, bank fees can quietly chip away at your retirement savings. There are many fee-free checking accounts you can move to and ways to monitor your account so you don’t incur unnecessary fees.
Paying Others for Things We Can Do Ourselves
Booking professionals to do jobs in the home can be expensive and, at times, unnecessary. While you may not be able to rewire a whole house, you can learn how to change a plug or wallpaper in a room.
Not Cooking at Home
Many people eat out regularly without thinking twice about it. But a quick dash out for lunch or dinner at your local restaurant can drain your budget. Instead, it would be best to plan your meals so that you cook at home more often and only visit restaurants for special occasions.
Automatic Upgrades
From cellphones and laptops to cars and homes, we can choose upgrades automatically as we know we can afford to increase our monthly outgoings. However, it is essential to stop and think about whether we need the latest in everything. If we can afford it, we can save significant money for our retirement fund.
Impulse Purchases
Every dollar spent on an impulse purchase is a dollar not saved towards your retirement. Over time, these seemingly small purchases can add up significantly, so ask yourself, “Do I really need this?”
Living Beyond Your Means
We live in a society where we must buy the latest trends to keep up with our peers, which can lead to overspending and debt. Living within, or even below, our means frees us from financial burden and allows us to invest more into our retirement.
Unhealthy Habits
Smoking and excessive drinking are not only detrimental to your health, but they are expensive habits. Quitting these habits will save you significant monthly money and reduce potential healthcare costs.
Sticking With The Same Insurance Companies
Refrain from assuming you have the best deal with your current insurance providers. Get quotes from different companies for car, home, and health insurance to see if your premiums can be reduced. Even a slight decrease in your monthly premium can result in significant savings over time, which you can then direct toward retirement savings.
Limit Travel
While a yearly vacation is a great medicine, booking too many trips away can quickly deplete your savings. When you retire, you can travel as much as you want, but only if you are careful about spending on luxury travel when you’re younger.
Food Waste
The U.S. consumes 92 billion pounds of food annually, which we all contribute to. If you regularly throw away spoiled food, you throw your money away. Try to shop more regularly by buying only what you need for the next few days rather than piles of food that will go to waste.
Wasting Spare Time
If you have spare time, you can look for a side hustle to bring in extra cash. Fortunately, you don’t have to do this for years while you are young and have less responsibility.
Over Subscribing
With dozens of TV screening services, magazine subscriptions, and monthly gym memberships, monthly outgoings quickly increase. Some subscriptions are used frequently, and others are forgotten about. Take time to check your bank account and cancel any subscriptions that you’re not using.
Paying for Entertainment
Entertainment can be expensive, whether you buy tickets for a show, go to the cinema, or enjoy a night out at a concert. While treating yourself occasionally is good, spending hundreds of dollars every week can quickly drain your savings.
Not Planning for Your Future
Being passive about your finances is easy, especially when you are young, but starting young is vital. Thanks to compound interest, the sooner you start saving, the more time your money has to increase. Even small amounts saved early on can accumulate significantly over time.