11 Ways to Save Money So You Can Retire Early

5) Weigh Your Wants Vs. Needs

This goes hand in hand with the “starve and stack” method. The focus of ‘want vs. need’ is just a way to manage your spending. When you’ve got two salaries at your disposal, it’s easy to spend more than your life actually requires.

Socializing, dining out, and entertainment drains the extra money after monthly expenses are paid. That leftover is seen as “fun money” and is spent because “you deserve it.” While this may be true, this mentality won’t help you reach early retirement. Instead of spending everything, calculate the things you really need to be happy and apply a thrifty mindset. Instead of dining out, invite your friends over for a healthy, home-cooked meal. Host a happy hour in the backyard instead of hitting the bars. Get outside and enjoy free entertainment like hiking or sports games with your friends. This can fulfill your “needs” in a more budget-friendly way.