I’m trying to “put my money where my mouth is” (or maybe change the money going into my mouth) and pull back on my food spending a bit. I packed my lunch for the first time yesterday and brought two tuna and mustard sandwiches (mustard as a healthier alternative to mayo), a bag of carrots, an apple, chickpea salad and coucous. It took about 5-10 minutes to make the night before and cost around $3.50.
If I could cut *ALL* my food spending in half, that’d be an extra $4000 per year (after taxes). In addition to being extra money to save/invest, that’d reduct my annual spending to $24,228.85, which (assuming the 4% retirement figure) would allow me to retire on $605,721.25 (instead of $705,721.25). Very significant savings from packing a lunch and eating out a little less often.
It’d be interesting to prepare an Excel chart looking at my savings rate and retirement target and calculating how much “time to retirement” cutting back on certain expenses would provide (the double-whammy of lower expenses and increased savings would be powerful I think). Might definitely help “cut-to-the-bone” if you saw that cutting something out would let you retire 3 years earlier.
I still don’t quite get how Derek Foster is able to support a family of 4 on $400k, but I’ll keep thinking about it. I suspect that once you factor in CPP and whatnot it can reduce how much you need for retirement.
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