Track Your Expense
So, you have been tracking your expense for maybe few months now, and you got your own answer to the question “ Where are all my money gone to?” You know you have feed that little cute vending machine near your office way too much money for whatever value it provided you.
Looking at your “real” hourly pay you are getting now, I bet it should not require any effort to convince yourself that which expense is essential to your long term happiness, worth the life energy you pay for it and which expense is nothing but impulse purchase that provides only short burst of satisfaction to you.
Ask yourself the right question to determine your spending plan. What is the more efficient way to use my money and my time? Buying expensive junk food as lunch at work place and gobble down the food without knowing its taste or cook your own less expensive healthy lunch and enjoy every mouthful of your food? Spent your time in your car stuck in morning peak hour traffic jam or cycle to work with a decent bike and get some exercise at the same time?
The word necessity means different meaning to different people at different phase of their life. The principle to retire earlier is simple; there are only 2 variables involved, your passive income and your expense. You can work toward increase your passive income or learn how to reduce your expense. I recommend you direct the money you saved from reduced spending toward paying off your debt if you are holding any or invest for passive income to achieve your early retirement goal, at least this is what I am doing right now for the time being.