Thinking about retiring some day? I got serious about retirement five years prior to pulling the plug. Started running financial scenarios, maxing out my 401K, changing my hair.
Changing my hair? What does that have to do with retirement? While no single action will get you out the door, it’s about simplifying and saving, and small things add up. No matter where you are in your career, here are 10 things you can do now to accelerate your financial freedom – or at least stretch your paycheck for better living today!
- Keep your hair simple. For me, it was going gray and choosing a style that only needs a trim every couple of months.
- Avoid dry clean only. If you must dry clean, extend the life of your clothes by using a steamer to eliminate wrinkles. My portable Shark works great. Women can copy men and wear a cotton shirt under jackets to absorb perspiration – you’ll go longer between dry cleaner visits. I like these t-shirts under jackets – no bulk, and the sleeves don’t bunch.
- Max out your 401K if you have one. With every raise, take a percentage and apply that to your 401K until it’s maxed out at $18,500 annually. If you are over 50, you’re entitled to catch-up contributions, which max out at $6,000.
- Quit buying extra handbags, statement jewelry and other accessories. Find a few signature pieces that make you feel great and leave the rest at the stores. Shopping is not a hobby.
- Bring your lunch. You’ll feel better, too.
- Back away from Starbucks – it’s easy to spend $10 a day on this habit.
- Use public transit. I rode the bus to avoid a long commute, but it ended up saving me a ton of money and wear and tear on my car – my company even paid for the bus pass.
- Skip color on your nails. Enjoy a professional mani-pedi, but get your nails buffed shiny, and you can go longer between visits. Some salons charge an extra $5 for the buff, but you’ll save money in the long run.
- Stop drinking sodas. Drink water instead, and use a water bottle with a filter so you can refill it just about anywhere. I like this one.
- Pass on injectables and expensive anti-aging face creams. If you are lucky, you are going to get old anyway.
I’ve always been reasonably frugal, but I’ve also wasted money. I came from a low-income family, joined the Army and went to college on the G.I. Bill. Once I got a good job and started making money, it was all too easy to reward myself for hard work because, “I can afford it, and I deserve it.” You think more stuff will make you happy, but it doesn’t. Reward yourself by saving!
One could argue planning for retirement is a matter of privilege, and I agree, but I also believe people from all walks of life value freedom on whatever terms they can grab it. I am grateful for my career and happy I saved enough money to end it so I can live differently and reinvent myself as I age.