4 More Frugal Habits We Still Practice After FIRE
You'd think achieving FIRE would mean we’d stop worrying about saving money and simply spend freely.
Nope.
Reaching financial independence doesn't mean you suddenly start ignoring price tags. If anything, FIRE changes the way you think about spending.
We don't avoid spending money because we're afraid we'll run out. We avoid wasting money because we'd rather spend it on things we actually value. It goes back to thinking like a CEO and putting our money to work where it generates the most value.
In a previous post, I shared five frugal habits that helped us retire early. Nearly 18 months into early retirement, we're still doing them.
And we've got four more frugal habits that we haven't kicked to the curb just because we're financially independent.
1. WE COOK MOST OF OUR MEALS AT HOME
Eating out is one of our greatest joys.
We keep a running list of restaurants to try and a spreadsheet of places we can confidently recommend, broken down by price. We plan entire trips around food in the destination. Occasionally we splurge on meals and food events that cost upwards of $1,000.
Yet despite our love for eating out, the overwhelming majority of our meals are cooked at home. We spend far less than the average American does on eating out each year.
According to USDA data, Americans spent an average of $4,275 per person on food away from home in 2024. For the two of us, our restaurant spending is about $3,600 a year combined.
I know this because we've used a kakeibo to track our spending for well over a decade. It's hard to change your spending habits if you don't know where your money is going.
EATING AT HOME SAVES US THOUSANDS
A lot can be said about the health benefits of home cooking versus eating out. But the biggest benefit is the cost savings.
When you pay for prepared food, you're paying for much more than the ingredients. You're also paying for all the costs associated with running that restaurant. Add fees for delivery to your home, and that cost goes way up.
A typical meal at home costs us $3-5 per person. Eating out is closer to at least $15-20 per person after taxes and maybe a tip. And that’s just for what I consider crap-level restaurants, like Applebee’s.
And by “crap,” I don’t mean food that tastes bad. I mean food that doesn't leave a memorable impression. Nobody talks about the amazing meal they had at Applebee's. Sorry, Applebee's.
It's food that fills you up and eventually...well, turns into crap.
Eating at home saves us thousands each year that we can use toward truly memorable experiences, including restaurants that we talk about years later. It’s the category of living expenses that we have the most control over.
Any time we need to free up more cash, we just eat more meals at home.
H3: And It Doesn't Take as Much Time as You Think
Ask anyone why they don’t cook at home more often, and there’s a good chance they’ll give a lack of time as a reason. It’s an argument that doesn’t make much sense to me.
After traveling to the restaurant, waiting to be seated, waiting to have my order taken, and then waiting for our food to arrive, it can be 40 minutes or more before we start eating. That doesn’t include the time to get ready to leave the house, or wait for the check, and drive back home.
That’s over an hour spent not eating—more than enough to cook a meal at home. Plus we don’t have to change out of our comfortable clothes.
2. WE STILL REFUSE TO PAY FULL PRICE
Just because we can afford to pay full price for anything we might need or want doesn’t mean we will.
We're always looking for ways to pay less for things we were going to buy anyway. Sometimes that means waiting for a sale. Sometimes it means asking for a discount. And sometimes it means buying something that isn't quite perfect because the price makes up for it.
Some of the ways we save money include:
Asking service providers for a discount. You’d be surprised how often simply asking, “Is that your best price?” actually works.
Shopping the supermarket’s discount rack. Produce that's approaching its expiration date can be perfectly good—and considerably cheaper.
Buying clothes at the end of the season. We’re fine having to wait a year before getting to wear the clothes. Nobody has ever called us out for our fashion being so “last season.”
Shopping liquidation and overstock auctions. Sometimes you can find some surprisingly good deals when you're willing to look somewhere other than a traditional retailer.
Waiting for stocks to reach a price we're comfortable paying. We don't buy a stock simply because we want to own it. We wait until the price gives us a sufficient margin of safety. More on that in a future post.
None of this is about being cheap.
It's about recognizing that the price of something and its value to us aren't necessarily the same thing.
If we can get the same thing for 20% less by waiting a week, asking a question, or shopping somewhere else, why wouldn't we?
I think about it the same way a business owner does. Companies negotiate with suppliers, compare prices, and look for ways to reduce costs without reducing value.
We're essentially running a two-person household business.
And unlike a business, our shareholders are pretty easy to please.
3. WE USE LOW-COST FINANCING TO OUR ADVANTAGE
Paying off a mortgage before retiring is usually considered wise. Debt is bad, they say.
So it might surprise some people to know that we still have a mortgage and are in no rush to pay it off.
In fact, any time we make a big purchase, we always ask for financing options. It doesn’t matter if we can afford to pay in cash.
If we can get financing with an APR of less than 3%, we’re interested. If it's genuinely 0% APR, has no meaningful fees, and the terms make sense, give us the longest payment period possible. Deferred-interest offers are a different animal, and we read those terms very carefully.
Salespeople will sometimes tell us, “You know, if you pay in cash, you won’t have to worry about the loan hanging over your heads.”
No thank you, I always say—and here’s why.
WHEN CHEAP DEBT CAN MAKE SENSE
I like using 3% as my quick and dirty annual inflation rate. It’s accurate enough and makes calculations easy.
If I can get financing with an APR of less than 3%, I can have inflation working in my favor rather than against me.
Imagine I get 0% financing for two years on a $4,000 purchase.
Instead of handing over $4,000 today, I keep that money invested. If it earns 3.5% annually, it grows to about $4,290 over two years.
At the end of the two years, I use $4,000 to pay off the loan and have roughly $290 left over.
There's another way to look at it. Because prices generally rise over time, that $4,000 I'm paying back in two years won't have the same purchasing power as $4,000 today. At a 3% annual inflation rate, its purchasing power would be roughly equivalent to $3,770 today.
So inflation makes the fixed debt cheaper in real terms, while the money I kept invested has the opportunity to grow.
That's why I don't automatically consider debt bad. I consider the interest rate, the terms, and what I'm doing with the money.
4. WE NEVER STOP LEARNING ABOUT MONEY
Prior to attaining financial independence, I read finance-related books every night for almost 20 years. I traded in my crime and science fiction novels exclusively for books on investing, economics, and accounting.
I've started to read fiction novels again since retiring, but I still regularly read finance books. I have about 20 books by my bed that I constantly re-read, and I buy new ones all the time.
At almost 18 months into early retirement, I wish I could say I've figured everything out when it comes to personal finance.
I haven't.
I'm more knowledgeable than I was 20 years ago, but I'm still learning. I'm learning new things and fine-tuning what I already know all the time.
I've found that learning personal finance is a lot like learning a spoken language. You don't learn it once and suddenly become fluent. You have to keep practicing or you forget.
That's one of the reasons I started FIREbefore50.
I figure that if I'm going to keep learning anyway, I might as well share what I learn along the way.
What money-saving or money-making habits do you still practice, even though you don't necessarily have to anymore? I'd love to hear about them in the comments.
See you at the finish line!
Disclaimer: I’m not a licensed financial professional. This blog shares my personal experiences and opinions around money, investing, and early retirement. It’s for informational and educational purposes only—not financial, legal, or tax advice. Always do your own research or consult with a qualified professional before making any financial decisions.
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