3 Expense Cuts to Get Out of Debt and Start Saving

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  • In the Netflix doc “Get Smart With Money,” Pete Adeney teaches a couple how to save up to $8,000 a month.
  • First, he cut his Amazon shopping and grocery budget to save $2,000 a month.
  • Thereafter, they downsize and move into a new home, renting out their first home for additional income.

Netflix’s new documentarybe smart with money” has a group of “mentees” who each receive one year of financial coaching from one of four renowned financial experts.

High-earning Colorado couple Kim and John asked for help from super-saver Pete Edenie, AKA Mr. Money Mustachewho retired at the age of 31.

John is a stay-at-home dad, while Kim is a psychotherapist and women’s empowerment coach, earning $300,000 a year. Before meeting Adeni, his monthly expenses were $13,000. “Every time we make more money, we spend more money,” Kim said. “I want to go to the other end of the spectrum and learn how to saveBut we definitely need someone to help us.”

The couple wanted to save more money and learn how to invest so that they could eventually retire early. By the end of their year working with Adene, the couple managed to start saving $8,000 a month toward their retirement goal, which they invest primarily in index funds and stocks.

Here are three budget cuts that helped them do just that.

1. Amazon Shopping

Adene helps Kim and John realize they need 25 times their annual expenses. investment accounts before they can safely leave their jobs and retire early. “It’s not really your income that matters. It’s your spending choices,” Adeney said in the documentary.

Kim and John gave Edenie a detailed account of their expenses, showing that the couple made $2,000 a month on Amazon. Kim admitted that she was buying clothes and toys for the kids to “reward herself” after a long day at work, but she was ready to give up that habit.

“I’ve definitely changed the way I think about Amazon and spending in general because we have a really concrete goal that we’re working towards. In retiring in the next five, six, seven years Being able is such a bigger reward than anything I could have bought,” says Kim. After three months, the couple spent an average of only $168 on Amazon purchases.

2. Groceries

Before working with Adene, Kim and John spent $1,200 per month on groceries, “It’s like a banquet-level expense for a small family,” Edeny told them. “It’s like you’re feeding royalty.”

Adeny shows them how to start shopping in bulk to save money on each meal per serving. After the first three months, the couple were only able to reduce their food expenses by $1,000 a month.

Edeny said he wanted to inspire the couple to save more on groceries, but in the end, he was confident that their spending habits would improve over time with their new mindset.

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3. Accommodation

Kim and John lived in a large house in Colorado, where they paid $36,000 a year. mortgage, After trying to be as frugal as possible for nine months, he decided to downsize his house because it was his biggest expense.

“It seems like we did a lot of simple things, like less Amazon spending, more conscious grocery shopping. So we decided to downsize and sell our home here in Colorado,” John said. they plan renting out their Colorado homeAnd they’ll use the profit to pay off the mortgage on their new, smaller home.

In the end, Adeney said in the documentary, “The ultimate goal of money is not to think about money. If your spending is low, all other problems vanish.”

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