Do your expenses affect your savings?
Many people dream of retiring early. After a lot of years of hard work, it’s understandable why most of us want to say goodbye to job-related stress. In fact, there’s a movement these days called FIRE that provides the possibility of financial independence (“FI”) and the prospect of retiring early (“RE”) from the hustle.
However, it’s important to keep in mind that FIRE usually requires a great deal of both planning and sacrifice. You may need to reduce or eliminate some expenses to put aside enough funds to reach your FIRE goals.
We’ll take a look at some of the costs that US households often incur, as reported by the Bureau of Labor Statistics (BLS). Then, we’ll come up with a few ways to cut expenses so that you have a better chance of reaching FIRE status.
Note: The following annual expenditures from the BLS are for US households of all ages and different sizes, including single people, families, and more than two individuals living together. They describe spending levels for 2021, the latest year for which this data is available.
Without further ado, here are 9 expenses you should reduce now if you hope to retire early!