What Would You Be Willing to Give up to Retire Early?

Erin Talks Money
by Erin Talks Money

What would you be willing to give up to retire early? Early is entirely subjective to mean whatever age you want it to mean.


Ultimately, if you're going to want to retire at an earlier than traditional age or if you want to achieve financial freedom at a quicker pace, you're going to have to make some sacrifices along the way.


Common things to give up to save money

According to a survey by Annuity.org, the most common things people would be willing to give up would be dining out, having pets, having kids, having a large home, and having a vehicle.


1. Dining out

The one that tops the list is dining out. 

Eating out

It's pretty well known that when you dine out, the cost of food is exponentially higher. 


The typical American spends about five to ten percent of their income on dining out and meal delivery services. 56% say they eat out two to three times a week. 10% say they eat out four to six times a week, and 6% say they eat out daily. 


I don't like the idea of giving something up entirely if it's something that you enjoy. It just doesn't seem sustainable long term to me. I like making tweaks. You could go out less. You could go the other route of buying fewer groceries. I'm talking way less. A full one-third of all the groceries purchased in the US end up in the trash. 


Buying fewer groceries was hard for me to implement, and I'm not someone who goes out that often, maybe twice a month, but grocery shopping and cooking are among my favorite activities.


If you're constantly going out for their meals only to come home and throw out the groceries you bought because you didn't make time to eat at home and cook that food, go ahead and buy fewer groceries.


I've improved over the years, and I always have to remind myself I can always go back to the store. 


2. Don't order drinks out

My husband and I are exclusively water drinkers at restaurants. If we want a drink, we'll have it at home, where you can get the bottle for the price of a single drink at a restaurant. It saves money, and it's safer. 

Cost of kids and pets

3. Kids and pets

If you lump kids and pets together, 47% of people would be willing to forgo kids or pets to retire early. Kids and pets are expensive, no doubt about that.


We all have a different idea of a life of happiness. Some people want kids; some people don't. Some people want pets; some people don't. Live your life, however you want to. 


However, I think it's important to remember that there are more important things in life than money. I hope that if someone feels like a kid or a pet would make their life better in some way; they don't say no to those options just to be able to retire a couple of years earlier. 

Average size of a home in the United States

4. Large living spaces

I'm totally on board with this one to an extent. We, as Americans, tend to live in very large homes, and the larger the home, the more expensive it is—a larger upfront price tag, higher taxes, utilities, maintenance, etc.


Housing is costly, anywhere from 20% to 50% of people's budgets. If you can buy a home that fits your needs but doesn't exceed your needs, it can add up to a lot of savings that you can invest toward retirement early.

Buying a car

5. A car

Only 8% of people say they would be willing to give up their car to retire before the age of 65, meaning 92% would not be willing to give up their vehicle, which I get because, in most areas of our country, you need a vehicle.


Most people pay anywhere from $45,000 to $50,000 for a new vehicle. It's very easy to lock yourself into a vehicle beyond your means. You can likely find a modestly priced car that is safe and reliable and fits within your budget. 


For many Americans, their vehicle is their status symbol. Don't fall into that trap. Your vehicle is just a mode of transport; that's it. It is not a reflection of self-worth. 


My thoughts 

This was an interesting list of the most common things people would be willing to give up to retire early. Everyone's list is going to look a little bit different.


Housing is the most impactful and realistic one on the list. If you can keep your fixed costs low, it frees up a greater percentage of your income.


I think the eating-out cost is looking at things more on the margins for most people, and I don't like that kids or pets are on this list. It is a very personal decision. I hate that it could strictly be a financial decision for some people.


If I were to put a list together, I would say the following things are important :


Avoid lifestyle inflation. I think it's about being deliberate, controlling your costs, and making sure that as your income increases, so do your contributions to savings and investments. 


I think that's also an important point: you're deliberately increasing your income over time because your financial goals are easier to achieve if you have a larger shovel. 


Keep housing costs modest. Keeping your housing costs in check is a great way to make your route to financial freedom much easier. 

Mindless spending

Mindless spending is so easy to do, it's spending on things that don't matter to you that don't improve your life. 


That's why going over your expenses regularly is a great idea. Spot these areas, and remove them. 


Take action. Being willing to take action is a huge step. You have to take your knowledge and put it into action at a certain point. It's so easy to say, I'll start tomorrow, or I'll start when I know more, or I'll start when I make more. The earlier you start, the easier your journey is going to be. 


How to retire early

Giving things up to retire early is a personal choice. What things are you willing to give up or not to retire early? Leave a comment below with your thoughts.

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