Retire Early? Maybe With These Frugal Steps

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I don't worry about money in the same sense that I don't worry about being hungry. I still watch what I eat and I watch what I spend. Naturally, I can't stuff myself with food and I can't spend a lot of money needlessly either. Both are wasteful. At $500/month (which does include health insurance, HSA+HDHP), you get to do a lot because having such a low number necessarily means that less time is spent on working and buying stuff or services. I do many of my own repairs for instance. Now, the first time it's tricky, but the time after that it is typically quicker than to call in an expert and pay him $300/hour. Especially, if it's Sunday. I also make more things than most people who are content to just go out and buy it. I could go on, but in short I have a lot of semi-competent skills that I use instead of buying things and services. This is much more economical and so I have a lot of time on my hands. These years I use it for writing, but I also serve on the board of a nonprofit. I help out another nonprofit. I go biking with other people in the middle of the day when everybody else is busy at work (go the whole trail to ourselves), and I crew in yacht races on a weekly basis.

Early Retirement Extreme of CA 4:31AM April 05, 2010

I am 54 and my wife is 53. We live very nice but, we do not have spend a lot of money. I will retire in 7 months. I've been in sales for 33 years. Everything we have is paid for. We have over 1.1M in retirement. My company will keep on the medical when I retire. Our house is small 1,600 sq feet and live in a small town in VA. Taxes on house is only $885/yr. Electric bill approx. $120/month. We only spend about $2K month. We cut coupons, travel in the off season peaks and save a lot of money, plus the places are not as crowed so you get better service. We go walking a lot and stay in good shape.
I to like anothe person on this board, hate the big business attitude now, and how they treat us like idiots.

Steve of VA 7:51PM April 04, 2010

Not having to attend one more ridiculous "team building event" ever again in my lifetime has been worth going frugal. Not having to sit through one more pep rally about selling crap to people they don't need is worth every leisurely wait at the bus stop. Not having to smile pleasantly and hold my temper while sitting across the table from someone I'd like to pumel to the floor and beat to a pulp makes coupon clipping a pleasant hobby. Yes I miss weekend getaways to Las Vegas, but my blood pressure is down to normal after years of near stroke levels. I'd never go back.

Tom of WI 3:59PM April 03, 2010

I dont really see that $500 per month is really living more existing. Yet if these people are happy then they have found success. We must all be responsible and not having heath insurance is living on luck, we wlll all die sooner or later but if we get sick without good medical care sooner is not good. I came to the US from England 30 yrs ago and never got caught up in the excess and waste. This county has a huge quantity of life styles but a low qualiy of life for most people, becaue for most life revolves around money. Success in my book is good health, happiness and enough money that you don't have to worry about money. Now fit your lifestyle into that frame and measure how much of a successful life you are living. My father retired at 59 I don't think I can beat that unless I go really frugal and then to me thats not living, so I hope for 62 with 20 plus years but as one person said after a certain age the body or mind give up on us not us on them. God bless all.

keith in Nashville of TN 2:52PM April 03, 2010

My wife and I have been downsizing slowly.. after hitting 50 (now 52 & 50) we realized that we just have too much "stuff." Owning stuff that you don't use costs you $ indirectly, and the sooner you realize that the value of your life is not in the stuff you own, the better off you'll be. How does "stuff" cost you? Well, you may need a bigger house to put it in, or to maintain it (for example: we had a pool. We rarely used it once the kids grew up. So we downsized it.) A bigger house doesn't just cost more to buy (mortgage) but probably has higher taxes, higher utilities bills, more repairs needed, etc. And then if you move and are bringing a lot of "stuff" with you, there's moving costs. There's the time spent finding places to put your stuff.
Downsizing can include services also: we realized that we rarely turn on the TVs to watch anything but football (one third of the year.) So how did I end up with more TVs in my house than people? So we sold all but two of them, and cancelled cable that we weren't watching. And got rid of that old freezer in the basement.. saved a ton on electricity.
So now we find ourselves with enough $ to save, enough to travel, and can (not necessarily will) retire within 3 years.

ReverendRusty of MA 9:15AM April 03, 2010

My husband and I are still working (a lot) and of course saving also (a lot) for our retirement in the future and that will be in the next four years. We save about 30% of our income and do not shop very much on clothing (although, sometimes I do) and have some bills to pay. But we are going to retire outside the U. S. and our money will lasts for a long time. We are planning to retire like a king and queen!!

PATTI MELT of CA 5:36PM April 02, 2010

My wife and I are nine months from only having the mortgage left. And probably only have three years after that before the mortgage is paid off. I'm 48. She's 44. Within 5 years, we'll be debt-free. Planning to bank a ton over the next 4-5 years after that and then semi-retire.
My wife and I buy only what we need, shop at the Walmart Supercenter often, eat lunch at Subway a lot. We do 'staycations'. When we eat out, mostly it's take-out (no tip necessary).
We're healthy and fit, hike, kayak, snowshoe.
We don't make our own Windex which I found comical when I read it.
People, just stay away from the credit cards, live below your means, put 15% in your 401k (both of you if married), don't have a ton of kids (stick with one or none), don't buy your kids designer clothes, don't buy yourself designer clothes, shop clearance, wisely use coupons for meals and groceries (note: not all coupons are good).
If you do the above, you should be able to dial it down around 55. THAT'S being realistic.

GP62 of RI 4:16PM April 02, 2010

Serious discussion, and thank you all.
Here how I see it, work like a slave, pay taxes till death.
Well decided not to do it, I live within my means and rertired at 49 years if age.
Did not realize what was missing until I ahve done it.
Do it now if you have been thinking ABOUT!

Jolie of LA 1:51PM April 02, 2010

I was 49 when the company I worked at for 30 years gave me a retirement party. I wouldn't want to get by on $500 a week let alone $500 a month. While making your own window cleaner is interesting, the main focus should be on the big things. Marry the right person, work hard and get that good job, max out your tax advantaged accounts as young as you can, know the tax code and investment info and USE IT, minimize interest payments by fewer and shorter term loans, shop around for insurance, and last but not least, realize that the Jones' are probably finacial simpletons you don't want to emulate.

bob of MN 1:35PM April 02, 2010

Early retirement can be a good thing, the question is; then what?
You cannot be on vacation every day? It’s bad for your mind and body. Unless of course you have a pretty good hobby that will continuously challenge your mind and keeps you active and fit. But that can be very expensive. Besides, if you retire at 50, is this when you are planning to start enjoying life? For how long?
When people get old say 70, there interest and idea of fun changes, their health starts to decline, and it may not be easy to spend “wisely” the money they have saved except on health care.
The time to enjoy life is here and now, find a job you love to do, cherish and enjoy every moment.

Nizar of CT 8:56AM April 02, 2010