This post is part of a series called the 30 Steps Program to Financial Independence.
Over the past few days, we’ve discussed what financial independence can mean for different people and what it means to me personally. To me, it means living a comfortable life without worrying about money. There are two main ways to achieve this: earning more and saving more. By cutting down on clutter, unnecessary expenses, and bad financial habits, you can maintain the same lifestyle for less money.
Additionally, if you can do things like car maintenance, simple DIY projects, or gardening, life becomes a lot cheaper. This reduces your need for money and the need to work to earn that money.
Revisit your numbers. If you calculated how much money you’d need to live without working a few weeks ago, you might have come up with a high figure. For instance, if you initially thought you needed $1,000,000 but now realize you only need $500,000, you are already halfway to financial independence! My own number was pretty low to start with, but whenever I learn a new skill like home or car maintenance, or cooking from scratch, I see the savings in my daily life.
For example, I used to spend $15 on pizza. Now, I can make a delicious pizza at home for $5 using better ingredients. This simple shift saves me $10 each time, plus other benefits like health and avoiding the drive to pick up pizza. If I need $30 a day for retirement, making pizza at home three times instead of eating out saves me the equivalent of one day’s retirement expenses.
Now that you’ve lowered your target amount, use a savings calculator to see how long it will take to reach your goal. By reducing your wants and simplifying your life, you might find you’ve saved months or even years in reaching financial independence.