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Kim and John (not pictured above) now save $8,000 a month toward early retirement.
In the Netflix doc “Get Smart With Money,” Pete Adeney teaches a couple how to save up to $8,000 a month.
First, they cut their Amazon shopping and grocery budget to save $2,000 a month.
Next, they downsize and move to a new home, while renting their first home for additional income.
Netflix’s new documentary “Get Smart With Money” features 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 sought the help of super-saver Pete Adeney, AKA Mr. Money Mustache, who retired at age 31.
John is a stay-at-home dad, while Kim is a psychotherapist and women’s empowerment coach who makes $300,000 a year. Before they met Adeney, their monthly expenses were $13,000. “Every time we make more money, we spend more money,” said Kim. “I want to go on the other end of the spectrum and learn how to save, but we definitely need somebody to help us.”
The couple wanted to save more money and learn how to invest so that they can eventually retire early. By the end of their year working with Adeney, 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 it.
1. Amazon shopping
Adeney helped Kim and John understand that they need 25 times their annual expenses saved in their investment accounts before they can safely quit their jobs and retire early. “It’s not really your income that matters. It’s your spending choices,” said Adeney in the documentary.
Kim and John gave Adeney a detailed account of their expenses, which showed the couple spent $2,000 a month shopping 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 cut that habit.
“I’ve definitely changed the way I think …read more
Source:: Business Insider