Yahoo Finance I Retired in My 50s: 5 Expenses You Should Eliminate Now If You Want To Do the Same
Did you know that 74% of Americans say that they are stressed about money? Money is a hot topic, especially with issues like unaffordable housing, lack of savings, high interest rates and rising debt levels looming over our heads. However, one of the biggest financial concerns that most people face today is how they can save for retirement in the midst of this craziness.
For most, retirement goals might seem unrealistic, especially if you hope to retire in your 50s. However, you’d be surprised how many unnecessary expenses you incur each month that can really drain your finances. In this article, we’ll cover five expenses you should eliminate now if you want to retire in your 50s.
“Start by doing away with any expenses that do not align with your core values,” said Jessi Chadd, certified financial planner (CFP), certified financial transitionist (CeFT) and chief wealth officer at Aspyre Wealth Partners.
“Take a quick values assessment to identify what really matters to you now and for your future. This will be different for everyone,” she said. “Then look through your “values lens” when deciding if an expense is worth it or not. If it isn’t adding any value to your life, then free up that money to invest in your early retirement.”
Also ask yourself these questions to see if retiring early is for you.
High-Interest Debt
When you take out credit cards, student loans or personal loans, a pretty high interest rate is likely attached to it. This means that you’re paying a percentage of interest on your balance every month. For example, if you have a credit card with a $10,000 balance and have a 22% interest rate, you’ll end up paying $2,200 in interest over one year.
These payments can really impact your budget, so you’ll want to get rid of these expenses first since they have the biggest impact on your spending. Consider increasing the amount you pay each month to pay off this debt sooner, contacting your creditors to see if you can negotiate a lower interest rate, or even consider consolidating debt to a card with no or a lower interest rate.
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Memberships and Subscriptions
Everything has turned into a subscription these days, with some of the most popular ones including streaming services, gym memberships and food delivery services. While some you may use often, there are likely some memberships that you can scale back on or eliminate from your monthly budget. In a recent survey, 85.7% of people have reported that they have at least one paid subscription going unused.
Consider reviewing your bank account and figuring out what is being charged each month. Once you have a list of subscriptions and memberships, you can evaluate which ones no longer serve your lifestyle. While it might not seem like a lot of money, even $10 a month adds up to $120 in a year.
“I suggest eliminating is [sic] anything on auto-pay,” Chadd said. “This includes streaming services, audiobooks, food subscriptions and such.”
“This type of spending is practically invisible because the charge is automatically applied to your credit card each month,” she said. “By removing the convenience of a subscription, you need to decide each month if the expense is still worthwhile.”
Eating Out
It’s no secret that eating out can be expensive, especially if you do it often. Instead of spending money at restaurants and coffee shops, try cooking meals at home and pack your lunch for work. Not only will cooking at home save money, but you’ll also be able to control what you’re eating, which can help make your meals even healthier.
For many busy adults, you might not have the time to create fresh meals daily. Consider meal prepping for the week so that you can grab and go. If you’re unsure of where to start there are tons of online resources that list out recipes and grocery lists you can use for your weekly prep.
Cell Phone Plans
Whether you’re an AT&T fan or Sprint lover, cell phone plans can be expensive. With unlimited plans costing upwards of $70 a month, it’s a great idea to look at other plans and see if you’re getting the most bang for your buck. Most cell phone companies even offer buyout programs to make it cheap and easy to switch over to another carrier.
Check what type of plan you have and how much of that plan you use. For example, if you don’t use all your data, you might consider switching to a cheaper plan with less data. If you’re on an individual plan, joining a plan with friends or family might be cheaper to save money.
Transportation Costs
Most of us need to use transportation to get to work or run errands, whether by car, public transportation or ride-sharing services. However, these costs can add up quickly and eat into your budget. While you may not be able to cut out these expenses completely, there are some easy ways to reduce your costs
Get rid of your leased car and consider buying an inexpensive car to eliminate monthly car payments altogether.
Consider carpooling with coworkers or neighbors to share the costs of gas or ride-sharing services.
Use public transportation or walk or bike when possible to save on gas and car maintenance costs.
While there are many changes you can make to help make retiring in your 50s a reality, this is a great place to start. By eliminating some of the larger expenses in your budget, you can feel less stressed out about money and be one step closer to retiring in your 50s.
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This article originally appeared on GOBankingRates.com: I Retired in My 50s: 5 Expenses You Should Eliminate Now If You Want To Do the Same
