How I Slashed My Spending by 50%

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If you’re into early retirement like I am, chances are you’ve started analyzing ways to cut your budget.

For me, a lot of it was taking a look at how much I spent on what each month. I put everything on a credit card because, aside from earning points, it allowed me to separate how much was spent in each category (utilities, restaurants, odds and ends). Analyzing my credit card report showed me I had one glaring issue: I was a champ at impulse buying. Need a wig for Halloween? Amazon. Clothing? Let’s go get it. The first step is to, well, STOP buying. And I mean make that commitment to put off purchases momentarily. It’s hard to cold turkey anything, right? We can slow the process, though.


Once I stopped impulse buying, I cut how much I bought way down as well. If it wasn’t a necessity, I actually stopped purchasing anything for an entire month. Guess what? Life still went on! I stepped down from buying nicer new clothing to shopping at places like Ross Dress For Less. Then, it almost seemed like I was still paying too much! After that, I almost stopped buying new things entirely. I had a job where I had to wear a uniform every day and switched to a job with more conventional attire. Instead of buying discount professional wear, I went to social media buy/sell groups, Craigslist, etc. and bought my entire professional wardrobe for—anyone want to guess? A hundred dollars. That $100 included the following (I cringe now because even this is too much for my minimalist nature nowadays):

  • Four dresses
  • Six pairs of professional pants
  • Two pairs of professional pants that are more form fitting
  • Nine tops
  • Three jackets/blazers
  • Four sweaters
  • Seven pairs of shoes

This still satisfies the “buy” itch but at a much smaller dent to your budget!


Related: 5 Advanced Excel Tips for a Better Home Budget

Your Items

The next step is honestly to minimize what you already have. Actively get rid of things you don’t need in your house, and send the message to your brain that you don’t need more of it. I started getting rid of a ton of things I had by asking myself: Do I need this? Can I replace this easily if I ever need it again? Why am I hanging onto this still?

If I knew I needed to get rid of it but just couldn’t for some odd reason, I’d do what I call a soft toss. Items in the soft toss box would be put out of sight for a few weeks, and if I didn’t think about it/miss it during that time, it was sold or donated. You know the funny thing? I haven’t needed or missed a single thing thus far. Our budget and our house inventory are both down 50% since we began this process. It feels amazing.


The other issue was food. Oh my, do we love going out to eat. The first thing we did was put a limit on how many times we could go out to eat. Some people love getting beer when out, so instead of buying a $9 beer, we started buying and stocking it in our fridge. Did we get rid of this “charge” entirely? Nah—but if there’s a beer waiting at home, it’s less of a “go without” situation.

Then we started making our own things. Salad dressing is so much tastier and cheaper when you make it yourself. So is hummus. Bread is the same way, as are homemade cleaning products, etc. That dish you always get at that restaurant can also be prepared at home most likely. We have an incredible Indian dish that is now our go-to for quick meals. My challenge to you as the reader is to make one dish that you frequently order out but have never made at home. See how it goes!


Related: 5 Frugality Myths Americans Believe That Would Make Ben Franklin Cry

This will be a very controversial stance, but going what we lovingly refer to as “freegan” also helped our grocery bill, as cheese and meat are very expensive. What’s freegan, you ask?  We eat about 95% vegan at home and don’t ask for special accommodations at a friend’s house or any events. Now hamburgers and ice cream are even more of a treat any time we go out/to a friend’s house. Do we still order pizza when we want it? Yep! Does that pizza have pepperoni? Yep. But honestly, going freegan has helped not only our wallets, but our bodies. We even find ourselves purposely ordering vegan items off menus on our nights out at times. We also find that our friends really enjoy the vegan meals we prepare when we host, though we don’t always prepare vegan meals when hosting.

Sometimes you may have an over-scheduled month that perhaps demands (I say that word loosely) more meals out. Sure, one can plan to avoid meals, but in some cases, it isn’t so avoidable—such as when friends visit from out of town and are dying to try that awesome restaurant in your city. In this case, we often opt to share meals, as the portion sizes in this country are insane anyway. We get to hit the social scene, try the local fare, and not bend our budget too much.


This is not an inclusive list, but it’s a fantastic start. For us personally, it boiled down to being way more mindful of what we spent our money on. We bought a french press, coffee bean grinder, and an electric kettle to make very fresh coffee each morning, and it beats the crap out of Starbucks any day. The little things that make life more tasty and more enjoyable overall helped us cut spending.

What methods do you use to cut down on your monthly budget without feeling deprived?

Comment below!

About Author

Sarah P.

A longtime writer and consumer of all things related to the FIRE (financial independence retire early) movement, Sarah went from working 50+ hours a week to less than 20 thanks to her real estate investment portfolio and side passion projects. Investing since 2015, she reached financial independence in 2016 and was able to retire in 2017. Articles about her journey and information about her current projects have been published in LinkedIn, BiggerPockets, Kiplinger, and many other financial news sources. Prior to the FIRE movement, Sarah worked as a Program and Acquisitions Manager on various projects and started a successful, world-renowned non-profit organization. Today, she uses these skills as a real estate consultant to help others reach their FIRE-related goals on a regular basis.


  1. Sara Kennedy

    Thank you for this great, easy-to-read post Sarah. I’ve been delaying my budget review for many months now. This is just another reminder that enough is enough, time to get my budget in check so I can start investing sooner!

    • Sarah P.

      Thanks for reading! This probably sounds nerdy, but we’re at a point where we enjoy doing this.
      After I wrote this post we sold the bed in our guest bedroom. The exact same day I found a nice futon for free in our neighborhood. I’ve since joined an online “free/swap” group in my city which is the perfect way to get rid of things I don’t need without being wasteful. Yesterday we went through our kitchen and got rid of 20 items… 20 items! If something else can do its job or you haven’t used it in all these years, it’s time to get rid of it. Chances are you can find that item for less than $20 if you ever need it again. And man does it feel better afterward because when I want to buy something for our kitchen, I think how we purged all that stuff and it helps prevent me from buying more. 🙂

  2. BreAnn Stephenson

    Thanks for this refreshing article Sarah! Some new ideas in here that I haven’t seen and your overall tone is so encouraging! My husband and I have been saving our receipts for the past couple months so we can do some analysis and cutting down. This article was a nice fuel injection to stay focused and on the path…thanks!

  3. Patrick McMahon

    Totally agree with sharing meals when we go out because portion sizes are so large in this country!

    If we do order 2 meals, my dear wife is kind enough to remind me to stop eating and get to-go containers, so we get another meal for the same price.

    • Sarah P.

      Patrick- that is a fantastic way to do it! Are into the minimal waste movement at all? We’re considering using our own to go containers but haven’t quite tried this yet. I hear good things from restaurants and minimal wasters alike.

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