Super savers share top tips for saving money without feeling deprived
Super savers share the strategies to keep more than 50% of their income without feeling deprived
By Command, Expert Editorial Writer
Saving more than half your income doesn't have to mean living in your parents' basement and subsisting on ramen. In my opinion, the key is to live slightly differently from your peers, and that's exactly what Cody Berman and his wife, Lauren, did when they began saving more than half their income in pursuit of financial independence. Berman, the author of 'Retire by 30', told Business Insider that they didn't have to sell their car or bike 20 miles in a snowstorm to work, or live in a storage unit. Instead, they made a few intentional choices around their biggest expenses, which resulted in extreme savings without feeling like they were constantly sacrificing.
One of their top strategies was tracking their expenses. Berman recommends recording your expenses to know where to improve. He compared it to tracking calories for the first time, making it easier to estimate what's on your plate. He tracked religiously for years during their FI journey and now has a solid grasp on how their money moves around.
Another strategy was keeping major expenses in check. Berman used one of the oldest tricks in the book: lowering the big three expenses - housing, transportation, and food. For housing, they house-hacked by sharing their home with roommates, living in a nice place but paying a fraction of what their friends were paying in rent. For transportation, they drove a paid-off truck, not a brand new one, and spent more selectively when going out with friends.
Kristy Shen and Bryce Leung, who saved up to 70% of their income to build a seven-figure portfolio and quit their jobs in their 30s, are adamant that deprivation doesn't work. Leung compared extreme spending cuts to crash dieting, saying you can do it for a little while but eventually have a relapse. Instead, they directed money toward what mattered most to them, like travel, which they considered non-negotiable.
Berman has taken a similar approach. When he and Lauren first started dating, they each wrote down the 10 things they valued most, then compared their lists and asked themselves whether their spending reflected those priorities. They cut back in the categories they cared less about, like cars, and spent more in the categories where they valued the things they really liked.
Living somewhere cheaper can also dramatically increase your savings rate. Miguel Marquez, a university professor, moved to Brazil and then China, where the lower cost of living helped launch his financial independence journey. He pays about $200 a month for a partially subsidized apartment and relies on inexpensive public transportation instead of owning a car. He feels like a millionaire despite not being one.
In conclusion, saving more than half your income doesn't have to mean deprivation. It's about making intentional choices, tracking expenses, and aligning spending with your values. By living slightly differently from your peers and making strategic decisions, you can build high savings rates without feeling like you're constantly sacrificing.
