On a recent episode of the BiggerPockets Real Estate Podcast, I had the pleasure of speaking with Mindy Jensen about my journey to financial independence. A burning question arises: How do I lower my expenses without sacrificing my quality of life?
Well, fellow FIRE enthusiasts, let me share my six key insights into how I transformed my finances by employing strategic techniques that allowed me to live a fulfilling life without spending too much life (don’t give up on lattes here!).
1. Cracking essentials: food and more
As someone who firmly believes in the importance of healthy nutrition, I refuse to compromise on the quality of my family’s diet. With my background in nutrition, I utilize savvy strategies to cut back on our food expenses without compromising health.
We slashed our monthly grocery bill by buying a lot of organic staples at Costco and ditching meal service in favor of meal planning with Mealime. Plus, by learning to make our own nutritious snacks (jerky, roasted chickpeas, roasted edamame, kombucha, chocolate, etc.) in less than an hour of prep time per week, we not only saved money, we also cut down on our ’s environmental footprint – the conversation is a win-win!
Savings: $3,000 per year
2. Unleash savings through group purchasing power
While many people flock to Costco for discounted groceries, our family saw this as an opportunity to save money in a variety of ways. By maximizing the benefits of our executive membership, we’ve saved significant amounts of money on insurance premiums (home, car, and term life insurance), tire replacements, and even pet prescriptions. It’s safe to say that I have become a walking billboard for Costco and I’m proud of it!
Savings: $1,800 per year
3. Redefining childcare
When faced with the high cost of child care, my husband and I rearranged our schedules to prioritize spending quality time with our daughter.
I’m not saying this is easy or even possible for everyone. This simple but effective “think outside the box” adjustment reduced our monthly child care costs by $400. Additionally, we have taken advantage of tax savings through a Dependent Care Flexible Spending Account (FSA), which allows us to set aside pre-tax funds to pay for our child care expenses.
Savings: Over $4,800 per year
4. Cut off the boundaries between communication and entertainment
In pursuing FIRE, we didn’t just stop at cutting back on food and childcare, we also took a hard look at our communication and entertainment costs. We saved over $200 a month by switching to an affordable phone plan like the UScellular Family Plan and cutting the cable cord. Plus, with Antenna TV as the base TV and select streaming services, we’ve found plenty of entertainment options without breaking the bank.
Savings: $2,400 per year
5. Save on pet expenses and travel: more savings, more adventures
Our commitment to financial independence extends to all aspects of our lives, including pet care and travel expenses. We are able to save over $900 per year by choosing a veterinarian who pays monthly for services and purchasing dog food from Costco.
When it comes to travel, strategic credit card hacks and Southwest Airlines Companion Passes allow us to save big on flights, restaurants, and rental cars, proving that adventure doesn’t have to come with a hefty price tag.
Savings: Over $4,800 per year
6. Embrace smart investments and gadgets
Finally, invest in basic home workout equipment (dumbbells, resistance bands, pull-up bars, benches, and a MindPump membership); purchase gadgets from reputable sources like Gazelle; and purchase clothing on platforms like ThredUp so we can enjoy ourselves Favorite activities and get quality brands without breaking the bank. By prioritizing quality over quantity, we’ve saved hundreds of dollars while still enjoying top-notch gear and gadgets.
Savings: Over $2,400 per year
final thoughts
Achieving financial independence is not about depriving yourself of the joys of life; It’s about making intentional choices that align with your values and priorities. By adopting a strategy-hacking mentality, cutting back doesn’t have to mean sacrificing quality or convenience. Heck, that could mean saving $19,000 or more on your next real estate investment. So whether you’re a seasoned FIRE enthusiast or just starting out on your journey to financial freedom, remember that every dollar you save means you’re one step closer to realizing the life of your dreams.
Ready to take control of your finances and hit the road to FIRE? Check out my new book, Tomorrow’s Money: How to Build and Protect Intergenerational Wealth. Until next time, keep up the good work and build wealth—your future self will thank you for it!
How to build intergenerational wealth without losing it
Want to study How to create generational wealth? you knowthe type of wealth your children’s children’s children’s children can rely on. The type of wealth that will allow your family to live a good life financial freedom, pursue your passion and make a real impact on the world without having to sit in a cubicle or behind a screen all day? this is wealth Whitney Elkins-Hooton This episode teaches you how to build it.
Notes on BiggerPockets: These are the opinions written by the author and do not necessarily represent the views of BiggerPockets.
