Saving Money: It All Adds Up

coin-stacks_1339-4468

Sometimes I eat potato chips multiple days in a row. I’m torn between buying small bags or bigger bags. It’s a dilemma of economics or health. Small bags at the local convenience store will cost me $1.75 which doesn’t sound like much but imagine that being an everyday expenditure. In a month that would equal $52.50 and this is assuming you don’t buy anything else. You’re already eating potato chips every day, what makes you think you’re not going to be a bigger loser and buy a soda or a lottery ticket?

That $52.50 would equal over $600 a year. It doesn’t sound like much but at the same time all you’re getting is potato chips. It’s the small habits that can chip away at your money. If you’re filling up gas you don’t have to come out of the gas station with anything else but fuel for your vehicle. There’s probably a long list of daily habits or bigger weekly habits that you can cut out.

 

 

First Step to Early Retirement

Most people have accepted that they will never be rich. Most people have also accepted that they will be working full-time until they are 65 years old. The reason for this is because the #1 priority for people is to conform.

Don’t be so down on yourself for being afraid to be left out because it’s perfectly human. We may be a civilized society with the luxury of being able to urinate in perfectly clean drinking water but our brain still has the same wiring as it did 100,000 years ago. To be left out of the tribe basically meant death back then. The instinct to fit in makes sense since it would be paramount to survival.

If you do what most people your age do then you’re likely going to end up on a similar path as them every step of the way which means working an undesirable job until you’re 65. It doesn’t sound so bad, right? It doesn’t sound so bad when you’re 20 or even 30 but soon after you’re going to get pretty sick of the daily grind and by that time you might be handcuffed to that life.

Even if you gave most 20-year-olds a recipe to be able to retire by 40 they wouldn’t follow it even if they believed in it. People don’t want to “miss out” on life. Life: nice stuff, vacations, eating out, big wedding, “friends,” you get the point. They’ll just tell themselves it’ll be okay to follow the traditional path. Maybe they believe this or maybe it’s just comforting.

I was 25 years old once. Financial independence in your 40s was too abstract an idea for me to handle. I didn’t want to miss out on life. I didn’t want to make sacrifices or take risks that could potentially oust me from the tribe. I thought following the traditional path was what life was all about. 

Financial independence at a relatively early age puts you way ahead of everyone. If you want to be exceptional then you can’t be doing what everyone else is doing.