5 Non-Depriving Money Moves from a 49-Year-Old Retiree
Ladies, how badly do you want financial freedom?
A gap year in three years? Retire in ten?
Would you shift your spending if it meant you could work less and live life on your terms?
Small changes today have a huge impact on your tomorrow.
At 49, I semi-retired. Using principles from the Financial Independence community, I accelerated my savings rate.
If I’d implemented the shifts below while in my 30s, I would have retired even sooner.
But I still lived large with very little sacrifice.
A cornerstone of financial freedom is challenging our consumption patterns. Most of us consume on autopilot. Once you wake up, you make conscious decisions about your spending.
You control your money, not the other way around.
The system is rigged to keep us poor and competing. Women face significant financial disadvantages. We earn less; are promoted less; and have lower lifetime earnings. Women are less likely to have an emergency fund. We save and invest less than men.
How many women do you see in your company’s executive team?
How many men do you know who sacrifice $1500 (or more) per month on overpriced beauty products, painful beauty treatments, and time-consuming hair services?
Take the blinders off. Let me show you your path to freedom.
How vain is your bathroom vanity?
When I turned 13, I fell under the spell of Clinique with my first ‘starter kit.’
I was hooked.
Fast forward three and a half decades, and I’ve sunk thousands into products with negligible benefit.
When we moved from Dubai to Mexico, I had to purge a lot of stuff. Many half-used bottles were turfed. When my cleanser ran out, I ended up using water or a dab of shampoo to wash my face.
I look the same. I feel the same. There’s no difference.
We’ve been shammed.
Every woman I know has a disturbing number of products:
Bath salts, bubble baths, body scrubs, body moisturizers, foot moisturizers, day creams, night creams, eye creams, hand creams, age-defying creams, body wash, face scrubs, shampoos, conditioners, various hair treatments — the list goes on and on.
Don’t even get me started on cosmetics.
I bet every woman I know has 60+ bottles of half-used, unused, or expired products.
Go check your bathroom. I dare you.
I rest my case.
If the average product costs $25, that’s $1,500 sitting on your bathroom vanity.
A week’s worth of vacation time. Was it worth it?
To add an extra layer of hot rage, there’s the pink tax, a markup on products targeted at women. Ever wonder why your moisturizer is $60, while the same brand marketed to a man is half? It’s intentional.
Here’s a breakdown of my beauty regime before and after I woke up:
Before
Cleanser: $40 x 3: $120
Toner: $40 x 4: $160
Eye cream: $60 x 2: $120
Day cream: $60 X 2: $120
Night cream: $60 x 2: $120
Total = $640
After
Cleaner: $40 x 1: $40
Cream: $60 x 2: $120
Total = $160
Savings over a year: $480
I can’t stand salons
During the pandemic, a lot of women stopped coloring their hair. Not me. I prefer a lighter shade to my medium brown.
The last time I went for balayage (or highlights), a trim, and style, it was $300.
I thought it would be cheaper in Mexico, but I was wrong.
Instead of a trendy salon, I found one away from the tourist zone. To save money, the stylist suggested a root color and toner, which would stretch the time between treatments from six to 10 weeks. The price was $170.
When I returned to Canada, I went to see my usual stylist. Fidgeting in the salon chair, I complained about the lengthy color processing.
She casually suggested I try the ‘10-minute express color.’ Concentrated ammonia means you’re in and out of the salon in 60 minutes for a color and cut.
Less chair time. Less cost.
The price was $120.
By asking a few questions, I was able to reduce my salon fees from $300 every six weeks to $120 every three months.
Before
Hair color and cut: $300 x 9: $2,700.
After
Hair color and cut: $120 x 4: $480.
Savings over the year: $2,220
Multiple memberships are keeping you broke
Pre-pandemic, I had a gym membership AND a personal trainer. On Saturday mornings, there was yoga at my favorite studio. With two memberships plus a trainer, I was spending $3K/year.
When the pandemic hit, I joined an online fitness subscription, bought some light weights, and exercised at home.
Though I do enjoy the odd in-person yoga class, I prefer my home practice.
Before
Gym membership: $55 / month: $660
Personal training: $100 x 20 sessions: $2,000
Yoga: $30/ class x 15: $450
Total: $3,110 / year
After
Online fitness subscription: $18 / month: $216
Yoga: $20 x 15: $300
Total: $516 / year
Savings over a year: $2,594
You are what you eat
I love eating out. But I’m a decent home cook, so the food has to be good to impress me.
I’ve never been shy to splurge. My husband and I used to dine out nearly every week when we lived in Dubai. Between cocktails, appetizers, entrees, wine, dessert, and a nightcap, it was normal to blow $350.
In Canada, I’ve noticed an increase in prices and a decline in portions and quality.
These days, we eat at home. I joined an online cooking program and have been able to create many restaurant-caliber creations.
While we used to dine out with friends, a BBQ, potluck, or dinner party is our go-to.
Plus, there’s no annoying two-hour time limit on the table.
Though we do dine out for special occasions, we are more conscious of what we’re eating and drinking. Now, in our late 40s, we’ve cut back on our alcohol intake (which reduces the bill). We sometimes share a meal and appetizer instead of each getting our own.
Before
$350 x 26: $9,100
After
$150 x 26: $3,900
Savings over a year: $5,200
Unconscious shopping is keeping you broke
Mindless shopping is expensive. When I was younger, shopping was a hobby. Nearly every weekend, we’d hit the mall, hunting for deals. It was normal to buy three or more items.
Shopping needs evolve as you mature.
- As a teenager, you’re interested in cosmetics and clothes.
- In college, you need items for your apartment or dorm.
- When you start a family, there is home decor and kids' stuff.
No matter how you slice it, there is a big difference between conscious and unconscious shopping.
Think of Amazon’s shopping cart. Your one $50 item becomes four through suggested add-ons. Suddenly your cart total is quadruple what you planned.
At 49, I have everything I need. I avoid malls and sales. Not surprisingly, there’s been a noticeable reduction in my spending.
Before
Clothes, home decor, gifts: $1000/ month: $12,000 / year
After
$300 / month: $3,600 / year
Savings over a year: $8,400
The grand total should make you angry
Here’s what a year of conscious spending can look like. In this scenario, you’re investing back the excess you’ve been spending on autopilot.
Beauty products: $480
Hair treatments: $2,220
Fitness: $2,594
Dining out: $5,200
Shopping: $8,400
Annual savings: $18,894
Monthly savings: $1,574
You might have noticed I left out some big-ticket items: Botox, filler, facials, manicures, and pedicures.
These can run thousands per year. Add these to your total.
It’s easy to see that you’re leaving $20K /year on the table for future you.
The excess still leaves plenty for fun. This is not an exercise in deprivation or frugality.
Future you will thank you
If you invested $1,574 every month for four years at a modest 6%, you’d have $87K, which is enough for a gap year or longer.
Here’s another angle.
Let’s say you have a side gig, but it doesn’t pay enough to leave your full-time job. After two years of contributions, you’d have almost $42K — enough to float you with your side hustle.
Long term? After 15 years, you’re looking at nearly $500K.
Don’t believe me? Run your numbers.
Having reached financial independence at 49, the only regret I have is not starting sooner.
I don’t need another sweater, thanks.
Resources
- Beauty Is $$$: How to Hop Off The “Hot Girl Hamster Wheel” (moneywithkatie.com)
- Self-Care Culture is Making Us Broke, with Chelsea Fagan (moneywithkatie.com)
I’d love to hear your thoughts and tips. Are there ways you’ve been able to take control of your spending?
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