20 Practical Money-Saving Tips to Achieve a 75% Savings Rate
π° 75% Savings Rate? That's Crazy!
Yes, it is. It's a bit of an insane goal. But we're not aiming for "normal" here.
Even the person who retired at 24 said it took years and huge life changes to get there. But once they achieved it, their life completely transformed.
Today, I'll share practical saving tips that can help you get closer to that 75% savings rate.
π ππ½οΈ Focus on the Big Three
Before you cut out the lattes, focus on the Big Three:
- Housing
- Transportation
- Food
This is where most of your money goes. Cutting here is far more effective than skipping a cup of coffee.
π House Hacking
A revolutionary way to slash housing costs:
- Buy a 2-4 unit multifamily with a first-time home buyer loan
- Live in one unit, rent out the others
- Rinse and repeat the process
This can reduce your housing costs to zeroβor even turn a profit!
π How to Get Free Cars
Tips for cutting transportation costs:
- Buy a 10-year-old car in cash
- Drive it for 1-3 years
- Sell it for roughly what you paid
Using this method, one person swapped cars multiple times and it was essentially like getting free cars.
π½οΈ Cutting Food Costs
Food is one of your biggest expenses. Throwing food away is literally burning your money, your life, and your freedom.
Action steps:
- π Meal plan like your freedom depends on it
- π Shop according to your plan
- π± Meal prep once a week
- π Pack your own lunch (eating out costs 2-3x more)
β Cancel Subscriptions
If you're serious about reaching financial freedom, you should probably be watching less TV anyway.
Check your subscription list right now and keep only what you truly need.
π·οΈ Buy Generic Everything
Many name brands are literally made in the same factory. It's just a marketing scheme. Don't fall for it.
π³ Use Credit Card Rewards
If you game the credit card system right, you can get free flights:
- Sign up for cards with bonuses
- Hit the minimum spend
- Cancel the cards down the road
One person got a dozen free flights this way!
π¦ Don't Pay Bank Fees
Americans pay an average of $329 a year on bank fees. Total waste.
Find banks with no fees, or meet the requirements for fee waivers.
π³ Use Credit Cards the Right Way
If you cannot pay your credit card in full every month, literally cut it up. Throw it in the trash. Burn it. Do anything.
You can hope for about 10% returns in the stock market, but if you're losing 30% to credit card interest? Take drastic measures.
β Switch to Black Coffee
Changing your latte habit means:
- Saving $5 a day
- $1,800 a year in savings
- Getting healthier
Invest in good beans and a Chemex. Become a coffee snob. It's totally worth it!
π« Don't Buy Sale Items
Instead, buy things you truly love.
The principle:
- A $50 shirt worn 50 times = $1 per use
- A $10 sale shirt worn once = $10 per use
That sale shirt is actually 10 times more expensive!
When everything you own is your favorite, you no longer need to buy things.
π Avoid Extended Warranties
Retailers make about an 80% profit margin on extended warranties. It's basically a scam.
π§ Stop Buying Bottled Water
Bottled water is generally about 2,000 times more expensive than filtered water. Invest in a filter.
π Negotiate Everything
Call your internet provider saying you want to cancel. They'll offer you everything under the sun to keep you. One person was offered half price for better service just to stay.
β° The 30-Day Rule
If you want something that's not essential for survival:
- Put it in your cart or write it on a list
- Wait 30 days
- If you still want it, buy it
Most likely, you'll forget about it by then.
π Invest in Things Between You and the Ground
Spend money on things that impact your health:
- A good mattress
- Good shoes
- Gym memberships
These are wise investments.
π€ Set Up Automatic Savings
If you're not robbing yourself every paycheck, you're probably not saving as much as you could.
When you take savings out first:
- No opportunity to waste money
- Live as if you have less
- Save even with poor self-control
If you have bad self-control, just steal from yourself!
π Key Summary
To reach a 75% savings rate:
| Area | Strategy |
|---|---|
| π Housing | House hacking |
| π Transport | Cash for used cars |
| π½οΈ Food | Meal prep & pack lunch |
| πΊ Subscriptions | Keep only essentials |
| π³ Credit | Full repayment or cut it up |
| π° Savings | Automate |
π« Final Thoughts
A 75% savings rate isn't achieved overnight. But if you put even just one of today's tips into practice, that's a start.
Small changes add up to big differences. How about checking your subscription list right now or planning next week's meals?
Wishing you success on your savings journey! πͺ
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