Becoming an Extreme Saver (3 of 7 Articles)

18 min readOct 22, 2023

~ Sunday, October 22, 2023 Blog Post ~

Article #5: How To Be An Extreme Saver, Or At Least Save A Bit More (From Bible Money Matters)

By Peter Anderson, October 1, 2018

When you talk about saving money for retirement, one of the first discussions that often comes up is — just how much should I be saving?

If you talk to some folks, like some of the popular money gurus or financial planners, you’ll often get the general answer of anywhere from 10–20% of your annual income. If you talk to people who are extreme savers, however, they’re likely to give you a much higher percentage — anywhere from 50–70% or even more!

So today I thought I’d talk about the idea of taking saving to the extreme. What are some reasons that people go down this road, what are the benefits, what are the pitfalls, and in the end, how can you save more?

Here’s a discussion of the topic of extreme saving from the Money Mastermind Show this week.

Taking Savings To The Extreme: Just What Is Extreme?

Our country’s savings rate has dropped dramatically over the past 70 years. According to the Bureau of Economic Analysis if you go back as far as 1944 the average American would save 26% of their income. Granted, it was during World War II and people were skimping and saving during hard times. Fast forward 70 years to 2014, however, and we have a personal savings rate that is hovering just below 5%. Not only that, but only 41% of Americans are actually saving regularly.

With so few Americans actually saving regularly, and when those who are saving are on average saving less than 5%, it doesn’t take much to be above average. But there are those who are far above average — saving up to half or more of their income every year.

So just what would be considered extreme saving? I’ve read in more than one place that you could be considered an extreme saver if you’re saving more than 20% of your income. Others say closer to 50–60%. Some of the truly successful extreme savers, however, are banking in excess of 70–80% of their income every year.

What Percentage Would I Need To Save At What Age?

When you talk about having enough to live on in retirement, when you are ready to retire can depend heavily on a couple of major factors. First, how much you’re making each year, and second, how much you can live on — what your lifestyle is.

If you’re consistently spending 100% or more of your income (as many Americans do), you will likely never be ready for retirement — unless you win the lottery or get a large inheritance.

If you were able to live on nothing every year, save 100% of your income and could maintain that indefinitely, you could essentially retire whenever you want.

Once you start saving the goal is to create a nest egg that essentially reproduces itself and doesn’t reduce in size every year after accounting for your expenses and inflation. So once you start saving and investing, your initial savings starts compounding and creating more income. Then the earnings on that income creates more income and so on.

Once your earnings from your savings and investments reach a level where they pay for your living expenses, while leaving enough in gains to keep up with inflation, you’re ready to retire. The book Early Retirement Extreme: A Philosophical and Practical Guide to Financial Independence by Jacob Lund Fisker gives a graph that illustrates the idea of what percentage of income you’ll need to save in order to retire — based on number of years you want to continue working. Here it is:

On his site, Mr. Money Mustache breaks it into table form for us, and uses the assumptions that you’ll get a 5% investment return (after inflation), you’ll live off a 4% safe withdrawal rate after retirement and that you’ll want your nest egg to last indefinitely.

So if you look at the table above, for someone who is 30 who wants to retire in 37 years at 67, you’d have to start saving about 20% of your income every year. Bumping it up 5% would mean dropping 5 years off that projected retirement date. If you start saving like an extreme saver, the likelihood of being able to retire at a much younger age becomes a reality!

What Are Some Benefits To Extreme Saving?

While most people immediately think of all the perceived downsides to being an extreme saver — like not being able to have any fun — they often don’t think of the benefits.

You can retire much sooner: If you go extreme with your savings,, you’ll be able to retire much sooner than the average person. Go very extreme by saving 70–80% of your income, you might be able to retire in 7–10 years!
Peace of mind: When you’re saving so much of your income you’ll see your cash reserves and retirement accounts growing so much faster — which will give ou a whole lot more peace of mind.
Sense of freedom: When you no longer work, or at least when you find yourself in a place where you’re able to work less if you want to, it will give you a big sense of freedom — of being able to do the things you want.
Simplified life with less stuff: When you’re buying less stuff, you’ll have less stuff to worry about, and a much more simplified life!
You get to be more creative!: When you have set limits on how much you can spend you’ll be more creative about how you go out and have fun. Instead of an expensive dinner and movie out, why not a bike ride and a picnic at the park!
It’s fun — make it a game: For some people the extreme saving can become almost a game — where they find ways to save more and spend less — and win the game by reaching their goals.

Downside To Extreme Saving

Most extreme savers will admit that saving so much of your income does have it’s downsides:

You’re not able to do as many things, feel deprived: If you’re saving is to the extreme end of the spectrum, you likely won’t be able to do as many things with your money as far as taking vacations, buying nicer cars or a bigger house. The extreme savings will preclude that from happening and you could end up feeling deprived.
You can’t be as spontaneous: If your budget is strict to allow higher savings,, it might mean that you can’t be as spontaneous with friends or a loved one, and you can’t go out for an expensive meal or drinks. You may have to try and encourage cheaper alternatives.
Less of a comfortable lifestyle: If you read on some of the extreme savings sites they’ll talk about how they may keep their home’s temps outside of the normal “comfortable range”, or that they may eat less expensive food that may not taste as good — but is more affordable.
If you have a family it can be hard to get them on board: If you’re attempting to be an extreme saver with a family in tow, it can be quite the struggle — especially when the kids want to be involved in extra curricular activities, sports camps, etc. Also, if a spouse isn’t completely on board with the extreme saving plan, it likely won’t go well.
It can be hard to maintain: A lot of people go into extreme saving intent on doing it long term. The problem is, like a crash diet — it can be hard to maintain. You go in with the greatest of intentions, but you can’t do it for more than a few months or a couple of years.

What Sort Of Lifestyle Change Will You Need To Make?

If you want to become an extreme saver, you’ll definitely need to make some lifestyle changes, especially if you’re like the typical American that over-consumes and under-saves.

What does that mean? It means simplifying. Cutting out some things that just aren’t necessary, things that could be considered a luxury. Cut the cable TV, get rid of the landline phone and drop the daily visit to your local coffeehouse. Quit the gym and start lifting weights at home. It may also mean having a lower standard of living where you’re not eating out as much, not spending as much on entertainment, living in a smaller house and cutting back wherever money is spent. There are a million and one ways you can find to cut, and in reality, once you make the change after a short while you won’t even miss most of the things you’ve cut.

Jacob from EarlyRetirementExtreme.com talks about simplifying his life, but still living relatively comfortably. While he didn’t completely cut out everything, he minimized his possessions, and typically only bought quality items that would last when he really needed something.

everything I truly needed to live well fit into a couple of large suitcases and reduce my expenditures to what is considered somewhat below the poverty level while maintaining a comfortable lifestyle. In terms of quality I live somewhat above the ordinary consumer class standard of living since I own more luxury items but in terms of quantity my life style is quite a bit below.

Your lifestyle change may need to change more or less, depending on how extreme you want to get in your saving, and depending on how willing your family is to join you in your extreme saving. While you may not get your spending down to the poverty level like Jacob, you can certainly do better than you are now.

Extreme (And Not So Extreme) Ways To Save

So what are some ways that you can save?

Extreme couponing: Some people will take couponing to a whole other level, finding ways to double up coupons, take advantage of sales, and only buy items when they’re on sale. In some cases they use multiple coupons to get items for free! The downside is that often this can be almost a full time job. The good news is that even a lazy couponer can still save a good amount of money.
Extreme frugality: Do things other people aren’t willing to do — things like not using toilet paper, not flushing, showering and doing laundry at the same time, dumpster diving. Here’s a look at some folks who do that sort of thing. I tend to avoid most of these things.
Cancel all services except ones necessary to live: Some people won’t pay for anything except for the services they need to live — like heat, water, electricity. Even those they will do their best to skimp on.
Cut out the vices: If you’re a smoker, drinker or if you gamble on a regular basis, cutting out these vices can save you hundreds of dollars a year.
Live without AC or with minimal heating: I was reading on one site how one extreme saver would allow his home to get extremely warm in hot weather without using the AC, and allow the house to get down to as low as 65 in the winter. He said he adapted quickly to the new temps.
Downgrade to a tiny house or rent: Downgrade your living situation on one of your biggest expenses, and save big money.
Downgrade your car, or go without one: Some folks will go completely without a car, riding only on mass transit or biking to work. Others will downgrade from a nicer car to an older and cheaper model that gets decent mileage.
Buy everything used or freecycling: There are so many things that you can just buy used and save a ton of money. For example, we recently bought my son a new bike. Instead of spending $100–150 buying it new, we found a nice used one for only $40 at a local store. You can often find things free through your local freecycle site or facebook groups.
Never eat out: If you trying to be extreme in your saving, you may need to cut the eating out, and eat mainly at home. Not as extreme? Cut back on the number of times you eat out and you can still save a decent amount.

Do You Have To Be Extreme To Retire Early?

Saving 60–70% of your income isn’t something that everyone can or want to do The question is, do you have to be an extreme saver in order to succeed? Or can you save less but still have a comfortable and enjoyable lifestyle? I can’t imagine I’ll be heading down the road of being an extreme saver, but I definitely would like to cut back on our expenses, and start saving more. I’d love for us to save at least 30% of our income, and be able to give away another 10–15%.

So what can we do to head down that road?

Start a budget, find problem areas: Start tracking your monthly expenses, and find where you’re overspending. Setup a zero based budget that will help you to make sure your money gets to where it needs to be.
Find areas that you can cut: Identify areas of the budget that are either extraneous, un-needed or just wasteful. Cut them.
Save an emergency fund buffer: Make sure to save up an emergency fund to cover you in case of an unplanned negative event. Once you’ve got that saved, you’ll be able to work harder at saving and investing for other purposes.
Put your savings and investments on auto-pilot: Put your savings goals on auto-pilot so that all of your savings goals and investments happen every month without your intervention. If you don’t have to think about it, it’s more likely to happen.
Revisit and revise your plan on a regular basis: Make sure you stay on top of your family’s financial situation, and revisit your goals and financial plan on a regular weekly, monthly or quarterly basis.

For me I want to find a balance between saving more for our future, and still being able to give and live a decent lifestyle today. I don’t think I ever really plan on fully retiring, but I’m still planning on working hard until retirement age so that I can do more of the things I want to do — and not the things I need to.

What are your thoughts? Could you ever be an extreme saver — or are you already? Tell us what you consider to be the ups and downs of this lifestyle.

Source:

https://www.biblemoneymatters.com/how-to-be-an-extreme-saver-or-at-least-save-a-bit-more/

Article #6: 6 Extreme Ways To Save Money (From Bible Money Matters)

By Melissa, November 2, 2017

Whether you have high expenses, debt to pay off, or you’re just a penny pincher, there are many ways you can save money.

You likely already do plenty of them like cook from scratch, shop with coupons, combine your errands while driving, compare prices, and keep your expenses lower than your income, etc.

However, there are plenty of more extreme ways to save money.

Eliminate Paper Products

There are several paper products that you can easily eliminate.

A good first place to start is eliminating paper napkins. Sew or buy your own cloth napkins to use instead.

Paper towel can be eliminated next, as well as paper plates, if you use them regularly. We do still buy paper towels, but the only thing we use it for is to blot our bacon of excess grease after cooking.

Cut And Dye Your Own Hair

I started going gray at 24, so I had many, many years where I colored my own hair at home with my husband’s assistance. I grew my hair long and trimmed my own bangs every few weeks so I only needed to get a hair cut about twice a year.

I also cut my husband’s hair. Considering a cut and color for a woman costs $60 and up and a man’s cut costs about $15 and up, we saved a lot of money doing this.

When my hair got too resistance to dye, I just went au natural, and now I have salt and pepper hair.

Eliminate Some Personal Care Items

Depending on your level of squirm, there are many ways this can be implemented in your family. When you have babies, you may choose to use cloth diapers and wipes. Some women use menstrual cloth (and swear that it’s much more comfortable than typical pads you buy at the store) or a menstrual cup.

Other families use family cloth, which is a nice way to say reusable toilet paper. They make wipes out of soft, flannel material and use those instead of toilet paper.

Many of these strategies are embraced not only by frugalistas, but also those who are concerned about the environment.

Live In A RV Or Tiny House

Imagine just for a minute how much you would save if you didn’t have a monthly mortgage payment and if your utility payments were slashed by two-thirds. When you think of all the money you would save, you can see why some people choose to sell their homes and move into tiny houses or RVs.

This lifestyle is not for everyone, but if you can handle potentially cramped living quarters, you can save tens of thousands of dollars a year.

Dumpster Dive

Broke college students have been known to bring home used furniture that they find at the curb, but there is another level to this — people who dumpster dive not only for furniture, but also for food, clothes, and whatever else they may find.

In our throwaway society, finding brand new items and other perfectly good items in the trash is fairly common. Dumpster divers set aside their embarrassment and reap the benefits of going through other people’s (or businesses’) garbage.

If you want to turn it into some side income, you can also make money by selling the things you find in the garbage.

Become Homesteaders

If you want to live a certain way and eat a certain way, you may consider becoming homesteaders and living off the land.

There are plenty of bloggers and YouTubers who document this lifestyle. One woman, due to health issues, had to eat gluten free and all organic. This led to an exorbitant grocery bill every month for her family of seven, so she and her husband decided to move to the country and become homesteaders.

Now, she farms, cans, gleans and routinely spends less than $200 a month on groceries.

While some of these extreme frugal strategies aren’t for everyone, if you embrace them, they can save you thousands, even tens of thousands, of dollars.

Do you utilize any of these extreme frugal practices? If so, which ones? Which ones are too extreme for you?

Sources:

https://www.biblemoneymatters.com/6-extreme-ways-to-save-money/

https://www.biblemoneymatters.com/10-ways-to-save-money-right-this-second/

https://www.biblemoneymatters.com/10-weird-and-unconventional-ways-to-save-money/

Article #7: 9 Easy but Extreme Savings Tips That Could Put Money Back in Your Pocket (From Firefighters Community Credit Union)

By Firefighters Community Credit Union, December 30, 2022

Are you a super money saver or someone that spends more freely? No matter your money mindset, you may be searching for ways to keep more hard-earned cash in your bank account.

If you have almost thought of every possible way to save, here are some more extreme savings tips for those looking to take their savings to the next level.

Don’t Waste Your Money on Expensive Cleaners

Are you using multiple products to clean counters, polish facets, and sanitize the bathroom? You might be letting money slip from your fingers. While one bottle of disinfectant may only cost $5, it all starts adding up with several products.

However, did you know that you can make your own cleaner using everyday household items like vinegar, baking soda, citrus fruits, and hydrogen peroxide for a fraction of the cost? This could help you save money by using products around your house instead of shopping for additional cleaners.

Plus, many of these products work just as well as the big-name brands and have fewer chemicals. If you still need convincing, just read some scientific studies about vinegar’s anti-bacterial properties.

Automate Your Finances

Do you think your finances run you? You can take control of your finances by automating your savings today!

Here’s how: treat your savings like a bill and set up a digital transfer so a certain amount of money goes straight into your account each month.

That way, it’s out of sight, out of mind, and you won’t even have to think about if you’ve saved enough. Plus, once you automate your savings, you won’t be tempted to use that money for something else.

Research Important Purchases

If you’re planning to spend money on a big-ticket item, don’t go for the first deal you see. Do your research, including the best value, and shop for the best price.

Do you love to shop online? You can use a search engine like Google Shopping or Yahoo! Shopping to find the best deal on an item you are looking for.

On some search engines, you can even track an item and get notified when the price goes down. If this is not an emergency purchase, you can wait and see if a sale will occur.

Just remember to take your time when looking for your next purchase and do lots of research!

Take Fewer Grocery Store Trips

While grocery shopping is necessary, it doesn’t need to be an ultimate budget buster. With inflation rising quickly, it is time to be more strategic about your next trip to the grocery store.

Instead of taking a trip every couple of days, buy in bulk and keep your pantry stocked with items you need monthly. Items like oatmeal, peanut butter, popcorn, and chia seeds are great options for buying in bulk, thanks to their long shelf-life.

Here’s another great tip: buy frozen fruits and vegetables or freeze the fruits and vegetables you already have at home. This will help you store these healthy items for longer.

When you go shopping, make a list of what you truly need and stick to your list!

Pack Your Lunch: A Simple Savings Tip

How much could you save if you packed your own lunch? Here is a rough estimate: let’s say an average lunch you buy costs $12, and you work five days a week. Over a year, you will have spent $2,880 on eating out.

If you prefer to keep a lot of that money in your pocket instead of throwing it away on food, pack your lunch to save. The average cost of lunch packed at home is $4. This adds up to $960 per year. Compared with lunch from a restaurant, you could save $1,920.

Need some inspiration for your packed lunch? Just click here!

Unplug Your Appliances!

While you may think it is silly to unplug your appliances, it can make a huge difference.

The Natural Resource Defense Council says those “standby” devices (such as — televisions, toasters, cell phone chargers, and coffee makers) are still consuming power and cost U.S. households $19 billion a year. That rounds out to an average of $165 per house!

If you’re looking for any way to save money, unplug all your devices when they are not in use. It may be annoying at first, but you’ll start creating a habit once you do it enough times.

Buy Clothes in the Off-Season

Do you need new shorts or a bathing suit but are waiting for the summer? Don’t; instead, shop for those spring and summer clothes now.

Many companies are trying to eliminate their old inventory to make room for new items for next year, so you can take advantage of great clearance deals.

Buy all the spring and summer clothing you need now, and then shop for your fall and winter clothing in the summer.

Grow Your Own Produce

Do you have a green thumb? According to a study from the National Gardening Association, an average vegetable plot could save you $530.

While you may have some upfront cost getting started (around $70), they usually pay for themselves when you dehydrate and freeze your vegetables to use later in the year. Plus, your upfront cost is usually only for the first year, and the tools you buy now will be used for years in your garden.

As a bonus, homegrown vegetables usually taste better than their store-bought counterparts.

If you don’t have a backyard, start with an indoor gardening kit to grow fresh herbs or put pots on a balcony or patio.

Get a Savings Account with a Higher APY!

If you’re looking for another savings tip, changing your savings account could help you earn more cash without even trying.

One good option for short-term savings is a certificate. This savings option allows you to store your cash for a limited term length and usually earns more APY.*

At FFCCU, you can earn up to 4.00% APY* on a 13-month certificate. But hurry, this rate is only available for a limited time!

Make sure to strategize your savings options to save additional cash. Even if a certificate is not for you, there are many other options like money market and club accounts. Find out more about savings options here.

Find the Savings Tip that Works for You!

If you want to save, there are always creative ways to help you reach your goals! Even if you don’t follow all these savings tips, you can find the ones that work best for you and use them. Don’t forget to earn a higher APY with savings accounts from FFCCU.

APY = Annual Percentage Yield. Certificate rates remain fixed for the term of the certificate. Penalty imposed for withdrawals before maturity. $500 minimum balance required. The 13-month certificate will upon maturity, renew to a 12-month term. Available for a limited time only. Only available for new money being put on deposit only. Click here to view full rate disclosures and policies.