How IFTTT Can Help You Manage Your Finances

In today’s age, we have a seemingly-endless number of tech resources to help us manage our lives. This holds true in our personal finances, as well —  it’s never been easier to track our money or see where it goes. We now have hundreds of tools at our disposal, which range from investment portals and budgeting software, to mobile check deposits and IFTTT.

What is IFTTT?

Computer programming languages use what are called conditional statements. One type of conditional statement is called the “if” statement. If a user presses this button, then the program will do one thing. If the user presses another button, the program does something else.

A free website has now put the power of if statements into your hands. Called IFTTT (short for “if this then that”), the website enables users to create what are called Recipes. These Recipes allow you to automate countless online tasks without a single line of code.

The easiest way to wrap your mind around IFTTT is to see some examples. You can, for instances, create a Recipe that will automatically save any photo you are tagged in on Facebook to dropbox (here it is).  In another Recipe, you can track how much time you spend in a certain location (here you go). You can check out other popular IFTTT Recipes here.

You can use IFTTT for anything! You can use it to help manage your social media, track your hours at work, or increase your productivity at home. In this article, I will show you how to use IFTTT to help you take charge of your budget. Whether you are on a survival budget or on your way to financial freedom, these recipes can help make your life easier.

5 IFTTT Recipes to Take Charge of Your Budget

1. Text message me anytime I get a Mint.com notification in Gmail

Mint.com will help you aggregate your finances across different financial institutions into one powerful, visual dashboard. One of my favorite features of Mint.com is the ability to set up custom reminders and email spending alerts. The spending alerts section has several items for you to customize, such as a low balance warning for your banking accounts, reminders for bills, or warnings for when you reach your credit limit.

If you’re still working towards inbox zero, then those alerts will almost always get lost along with your hundreds of emails. This simple IFTTT recipe  will send you a SMS text message on your phone whenever you receive an email from Mint.com.

2. Keep track of your (online) purchases in a Google Spreadsheet

If you prefer to track purchases on your own, then a simple spreadsheet may work for you. This IFTTT recipe will automatically add a new row to your Google spreadsheet any time you place an online order. This row will be automatically filled in with the time, subject, and any attached document that is sent to your Gmail account whenever a subject line including Order or Receipt is received.

This is a good option for those who do a lot of online shopping. It can also be an alternative to organizing your receipts in Google Drive by emailing pictures of receipts to yourself using the words Order or Receipt in the subject line, and any additional notes in the body of the email.

3. Keep track of your cash spending

Whether you use Mint.com or a spreadsheet to track your budget, one of the biggest challenges for those starting out is being mindful of where your cash goes. With IFTTT’s Do Note app, you can quickly and easily enter your cash spending and receive a weekly report of what you spent it on.

4. Use Getting Things Done & Trello to remind yourself to pay your bills on time

In podcast DR 185, we talked about the Getting Things Done (GTD) productivity system by David Allen. This system can be implemented into many online solutions like Evernote and Trello.

With this IFTTT recipe, it will create a recurring bill to pay in the form of a card in your GTD Trello board.

5. Save your money based on your preferences

Don’t know how you can possibly afford to save money on your survival budget? The internet-of-things has paved the way for new ways of thinking and has created many avenues for saving money.

Qapital is a unique company that breaks from the traditional concept of saving money. For example, it triggers savings with certain behavior, such as punishment for giving in to a “guilty pleasure.”  With IFTTT, the possibilities are endless: Did you meet your step counter goal today? Does the rain make you want to save for a nice summer vacation? Did you read a book today?

All those conditions can trigger Qapital to save a designated amount. So with Qapital, you can use it to create a reward- or punishment-based system to manage your behavior while saving money at the same time! Take a look at some of the Qapital IFTTT recipes.

Summary

When it comes to budgeting, these five recipes are just the tip of the iceberg. Explore the possibilities with IFTTT to help automate your life and take control of your budget.

If you create or find some new recipes that help with your budget, please let me know by leaving a comment below or tweeting me @caquinoconsult. I’d love to hear from you!

The post How IFTTT Can Help You Manage Your Finances appeared first on The Dough Roller.

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MTI AdventureWear Journey Ultralight PFD Review

The MTI Journey Type III PFD

The MTI AdventureWear Journey PFD life vest is a lightweight Type 3 PFD that weighs just 14.4 ounces (in a size L/XL – smaller sizes are also available), making it a excellent option if you’re looking for a well-tested and bombproof commercially available life jacket for packrafting. Weight is a prime consideration for packrafting, a sport that combines backpacking on foot with paddling in inflatable boats on whitewater or flatwater as a means of travel or backcountry recreation. If you have to carry a boat, paddle, and PFD any distance, you want them to be as lightweight as possible.

The Journey is made using foam which makes it virtually foolproof compared to inflatable PFDs, (See How to Choose a Packrafting PFD for a good discussion of Packrafting specific PFD requirements) as long as you wear it on the water and it’s fitted properly. The advantage of a foam PFD over a manually or automatically triggered inflatable PFD is that it’s always activated and armed, regardless if you’re conscious or unconscious, and requires virtually no maintenance. Priced at just $53.95, the MTI Journey PFD is also an excellent value compared to many more costly and heavier PFDs available today.

Not to discount the value of the MTI Journey, but it is a basic, no frills PFD, without any pockets or attachment points for a rescue knife if you feel you need one. It has two non-adjustable shoulder straps and two tiers of adjustable side straps for adjusting vest volume, one at chest level and one around your waist. Covered with a brightly colored and tough 300 denier polyester fabric, there’s a beefy center zipper and reflective strips on the shoulder straps for high visibility. Large arm holes provide plenty of clearance for paddling without any chafing or constriction.

The MTI Journey has large arm holes that are comfortable when paddling.

Intended for use canoeing, kayaking, and sailing, the MTI Journey PFD life vest is a USCG certified Type III vest with 15.5 pounds of buoyancy. It’s easy to swim while wearing the vest, a key requirement if you know you’ll need to self-rescue when paddling whitewater or for other more “active” water sports. However, as a Type III vest, the Journey is not guaranteed to keep your head out of the water if you’re unconscious, and whether it does or not will depend on your physical dimensions and the fit of the vest.

Packrafting Evaluation Criteria

When evaluating a PFD for backpacking and packrafting use, it’s useful to evaluate a life vest or PFD along the following additional variables:

1. Compactness – How easy is it to transport the PFD when backpacking? For example, a foam PFD may be bulkier than an inflatable PFD and require a large backpack or external attachment on the outside of your pack.
2. Durability – How durable is the PFD in rough conditions? For example, would it remain usable if you attach it to the outside of your backpack and bushwack though dense foliage?
3. Weight – How heavy is it? Does carrying it require other tradeoffs in gear or consumables?
4. Reliability – Will the PFD “work” 100% of the time?
5. Passive Use – Will the PFD work if you’re unconscious or incapacitated? Does the PFD require extra steps to inflate or put on when needed for use or do you wear it it a read-to-use state?
6. Assisted Rescue – Does the PFD rely on rescue assistance from others or is it sufficient if you’re alone and need to be self-reliant?
7. Comfort – Is the PFD comfortable to wear at all times or is it cumbersome for your intended activity?
8. Multi-function – Can you use the PFD for multiple purposes, such as sleeping pad, seat cushioning, or seat insulation in a packraft with an uninsulated floor? Does it help enable other activities, such as fishing?

The solid back of the MTI Journey provides good postural support for packrafts that don’t have seats and helps promote a more upright position.

How does the MTI Journey PFD rate on these additional dimensions?

• Compactness: Bulky, and probably best carried on the outside of a backpack
• Durability: Highly durable with a thick polyester shell so you can strap it to the outside of your backpack
• Weights: Very low weight. You’ll be hard-pressed to find a commercially manufactured and USCG PFD that weighs less.
• Reliability: Very reliable. Foam vests always do their job without complaint or extra maintenance.
• Passive use: Depends on your personal fit, but the vest is likely to keep your head out of the water given its design. Type III vests don’t guarantee this though. Type I vests do, but have many other disadvantages.
• Comfort: The Journey is quite comfortable to wear for long periods of time and provides additional torso insulation in cold weather or cold water. It may interfere with Packraft spray skirts since it has a full back, so best check the fit if you use one.
• Multi-function: The rigid foam back of the MTI Journey can be used a “seat-back” in packrafts that don’t provide one.

While it is a foam PFD and therefore a bit bulky to pack, the Journey is durable enough that you can attach it to the outside of your backpack without having to worry about puncturing it in heavy vegetation. This is a real concern when packrafting because you’re likely to spend significant time off-trail to get river or flatwater access (unless you can find a boat ramp in the “wilderness”.)

While no life vest is perfect for all needs and conditions, the MTI AdventureWear Journey is without a doubt a best buy if you’re looking for a packrafting PFD that weights less than one pound and can be used for whitewater or flatwater packrafting.

           

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How to Build Saving Habits With These 7 Apps

Popular wisdom once said that a new habit takes 21 days to become a permanent fixture in life. But according to one newer study, it’s actually closer to 66 days.

I’m on a quest to find some powerful apps that will allow me to build a positive savings habit. If you have some bad spending habits you want to track down and eliminate, there’s help out there. Since there are apps for everything, you can train yourself for free with savings apps that will encourage you on your road to financial freedom.

Let’s look at these 7 iPhone apps that encourage and track positive money saving habits for your life.

Tip Yourself – iOS

Tip Yourself is a savings app designed to motivate you to set aside money when you reach your life’s goals, big or small. The developers of Tip Yourself have created a community of like-minded savers who want to encourage others to do the same. Tip Yourself users literally “tip” themselves with small dollar amounts each time they feel like it.

Skip Starbucks and drink the coffee you had at home? Put some money in the tip jar. Pack a lunch instead of eating out at work? That’s reason to celebrate. Tip Yourself harnesses the power of positive reinforcement, encouraging you to save money for a higher purpose and help others do the same.

To set-up a profile, you’ll have to enter some online banking information, confirm the account, and then you’re on your way. Savers get an electronic “Tip Jar” to fill with deposits that you can easily track over time via a handy calendar view. Each day that you tip yourself, you’ll see that date turn green in the calendar view.

View your tips in several categories to see how you’re doing – average tips per week, average tip, highest tip, and total amount. Pre-set amounts are $2, $5 and $10, but you can donate any other amount from $1 up. After you select your tip you can shout to the world that you’ve saved money!

The money you save is stored in the online tip jar (encrypted and FDIC insured) and then returned to you when you want to use the money. Canceling your account will withdraw all tips from your tip jar and return them to the account from which they were withdrawn.

Likes: The community. Be encouraged by others and pay that same encouragement forward. Users can give props and leave comments for other savers around the globe. Having partners in saving increases accountability, and you can invite friends from your Contacts and Facebook account.

Dislikes: Flexibility. To change your bank information, you’re required to email the support email address at Tip Yourself.

iMoneyLover – iOS

A simple piggy bank app, iMoneyLover requires no bank account information for setup and offers a customizable savings goal creator. Set your Goal’s Name, Amount to Save, Currency Name (great for those saving other than $), and the time frame for when you want your goal accomplished. You can activate daily notifications to remind you to “feed the pig” and when you complete your goal, reset your data and start a new one.

Likes: Simplicity of use.  Feed this pig and he’ll tell you he’s full for the day and to come back tomorrow.

Dislikes: This app is free but an advertisement bar appears at the bottom. There’s no way to track your savings goals over time, as MoneyLover will only keep one goal active and visible.

Money Box – iOS

The Money Box app is a step up from other electronic piggy banks that will help you create that positive savings habit. Users can track goals throughout their lifetime, sort by due date or alphabetically, and even add their own pictures (or stock icons) to help visualize each goal.

I was able to set my master currency to USD, but global savers can choose anywhere from the Hungarian Forint to the Chinese Yen. You can add a Facebook or Twitter handle and activate sharing for Creating, Achieving, Contributing, and reaching a Milestone goal.

To create a goal, you’ll select a photo/icon and enter the title of the goal. Choose your target amount, currency, and target date. While not connected to your real bank account, there’s an option to “name” your savings account. Like other electronic piggy banks, you’re responsible for creating your own separate savings account to fund your goals. Finally, you’re able to set how often you want to save for this goal: Daily, Weekly, Bi-Weekly, and Monthly.

Likes: Customizable options and visualization tools, like adding a photo. Then track the goal status with color-coded bars and percentages. This makes for a subtle-yet-powerful motivator to save.

Dislikes: Inability to link a bank account. Coupled with the power of the visualization, being able to transfer money with one touch of a button on this app would make it more powerful on the road to building positive savings habits.

fineants – iOS

An elegant savings app for positive habit transfer, fineants provides monetary proverbs from the likes of Benjamin Franklin and other financial gurus as it motivates you to develop a habit of saving.

Create a goal, then track the money you’ve saved over time after squirreling it away in your real piggy bank. Under each goal you can track the progress by percentage complete and total dollar amount you’ve saved. A downside to this fast and easy app is that you can only track one goal at a time unless you buy the pro version.

Likes: Visually simple and to the point. Move the money on your own but track progress on your iPhone, inside the app or in the widgets section under the “Today” option.

Dislikes: Cost. Upgrade to the pro version to track more than one goal.

FiftyTwo+ – iOS  

The FiftyTwo app is based off a 52-week money saving challenge. The idea is that you start with $1 saved the first week, and end with $52 saved the final week. At the end of the challenge, you’ll have $1,378 stashed away.

FiftyTwo has a clear and easy tutorial page you can review before getting started. Simple features, like swiping right to mark a weekly deposit complete or cancel out a week’s progress, make FiftyTwo easy to use and be on your way.

There are only two pages to navigate: the home page and the settings page. On the home page you’ll see each week and the required savings amount to meet the challenge goals. Settings include a Sync to iCloud option and the ability to set a next reminder, but this is for the paid version only. Here you can also customize the name of your goal for extra motivation.

Likes: You’re taking part in an effective habit building system. At the top of the app you can quickly identify how much of the $1,378 you have piled up.

Dislikes: No option to link a bank account for instant savings. There’s also an advertisement bar just below the top of the app, which can be removed for $0.99.

Clink – iOS and Android (available soon on Google Play)

An advanced and slick savings app, Clink has enough options to satisfy any aspiring saver. It’s not only a savings platform but an investment primer as well. You can personalize and tailor this online piggy bank to suit your needs.

At setup, users are asked to identify what kind of portfolio they want, ranging from very conservative (about 70% bond/30% stock) to very aggressive (20% bond/80% stock). The Clink platform will automatically invest in Exchange Traded Funds (ETFs) that match your desired rate of return for the newly created, automated savings account.

For example, if you want a stable, lower risk savings option that will provide returns similar to a Certificate of Deposit (CD) or money market account, you will probably choose the very conservative option. If you’re chasing the gains, you might pick aggressive or very aggressive. No matter where you fall on the risk spectrum, there is a portfolio option to meet your needs. (Keep in mind there may be tax consequences when you withdraw money from your account.)

Track and manage savings under the Savings Management tab, where you can set your options for automatic savings and view your savings history over time. Choose between saving every day, every other day, weekly, every other week, or monthly. Base amounts are $1, $5, $20, $50, $100, and $500. There is no option to apply a different amount to your automated savings schedule. You can, however, deposit and withdraw any amount at any time, provided the funds have cleared your bank.

If you link a credit card with Clink, you can set a percentage of each restaurant purchase to automatically save. The default is 20%, but you can modify it to a different amount if desired.

Bonus: Earn $5 per referred friend or family member that registers to use the app. Navigate to the Invite Friends tab and choose between Facebook, email, or a text message invitation.

Likes: Groups. Get your family and friends to sign up with you. That way, you can all work toward a shared goal, like saving for college, a car, or a family vacation. The possibilities are only limited by your imagination. The bonus mentioned above will be added to your account, so there’s one more reason to start a savings group.

Dislikes: The functionality of the app is not quite complete – a Clink video advertisement claims you can set automatic savings percentages for purchases made on your favorite credit card. However, this feature isn’t fully available. Clink’s support team explained that their current version of the app only allows for automated savings in one category (restaurants), but future versions will allow users to pick more categories to collect automatic savings.

Additionally, there is no way to view which credit card you’ve linked to Clink nor is there a way to change the card unless you have Clink reset your account. Expect upcoming updates to resolve these functionality issues.

Penny – iOS

Penny is more of a financial assistant, rather than a “piggy bank” savings app like most. It was also the most fun I’ve had exploring a personal finance app yet. It helps you develop positive financial habits. Intuitive and fun interaction walks you through setup and account linking as if you’re having a conversation with a human being. Once complete, Penny tracks spending (and income) with all linked accounts, providing easy-to-read charts and progress reports whenever you want them.

Penny is like Personal Capital, but without as much detailed information. This app is focused on spending, saving, and income rather than investments. Penny’s programming will scan your purchase patterns to identify your subscriptions and frequently used products. After my first 5 minutes on the app, I got my first helpful alert. Penny asked me if I’d like to cancel or upgrade my Audible subscription based on usage. I told her I was happy with what I had.

After a few days, I checked back in to see what I could learn from my new personal assistant. Penny pointed out that in each of the four preceding weeks, I was spending less and less money. This is a very powerful motivator and positive way to develop a conscious thought process focused on saving more and spending less. “We” went over my top three purchases so I could identify what was costing me the most money each week.

Ask Penny how the month is going, and you’ll get a side-by-side comparison of the current and previous month. You’ll know right away if you’re spending more or less than you did at that same time last month. If you’ve made a large purchase, Penny will identify the transaction and remind you of the details. If there’s a spike in spending, Penny will point it out.

If you have transactions you don’t want to show up on the app’s register, you can categorize them as “ignored”. This will prevent normal expenses (fees, payments, transfers, etc.) from distracting you from your goals. Other selectable categories include food, transportation, other purchases, income, and bills.

Bonus: Earn swag from Penny by referring friends and family.

Likes: Interaction. I enjoy the conversation style interaction with Penny. It give me the feeling I have my own personal finance assistant to help me along the way.

Dislikes: Category options. I want to include charitable giving and other expenditures, but with only 5 categories to choose from it’s not possible to break it down further than “other purchases.” Adding more categories would help users easily identify positive and negative spending habits.

Whether it’s 21 days, 66 days, or somewhere in between, developing a habit of saving is possible. We use our phones and computers every day anyway. Installing a habit-reinforcing savings app will increase your chances of success.

If you want simple tracking that reminds you to move money into your savings account, an app like fineants, FiftyTwo+, or iMoneyLover is the way to go. If visual motivation works better for you, use Money Box to set up goals with custom photos. If you want a personal touch you’ve got to choose Penny. The socially-motivated saver should use Tip Yourself. For a group setting amongst family or friends, Clink can connect you to your desired goals.

What app do you use to help you remember to save? Leave a comment below and let us know.

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Backpacking to Flat Mountain Pond

Flat Mountain Pond, deep in the Sandwich Wilderness Area of the White Mountain National Forest

“I can’t imagine any fisherman hiking five miles to fish here,” said the fisherman I met at Flat Mountain Pond in the Sandwich Wilderness. Ironically, he and his buddies were the only people I encountered on a backpacking, packrafting, and fishing trip I took to this epic backcountry pond at the foot of Whiteface Mountain. Despite their presence, it’s true. You’d have to be high energy or half-mad to hike in here to go fishing, even though it’s one of the best backcountry trout ponds in the White Mountains.

This was my second trip to Flat Mountain Pond, a mile-long pond nestled between North Flat Mountain and South Flat Mountain in the southern section of the White Mountain National Forest. My first trip here had been last April, when my friend Chris and I bushwhacked the south and north peaks and camped out overnight to soak in the atmosphere. We hiked out along the western half of the Flat Mountain Pond Trail which runs along Pond Brook, one of my favorite Tenkara Fly Fishing Stream in the Whites.

Whiteface River

Flat Mountain Pond is so beautiful that I set my heart on returning this year for a second visit, hiking in from a different direction, following the Flat Mountain Pond Trail west along the Whiteface River which drains the watershed southeast of the pond. This turned out to be quite an obscure and hard-to-follow route, necessitating bushwhacking on the hike in and out when I lost the trail. Forget blazes. It looks like it’s been some time since this 5.3 mile section of trail has received a trail maintenance visit.

My goal on this trip was to do some backcountry fly fishing and nature viewing from a Supai Adventure Gear Matkat packraft which I carried in my backpack along with an Supai Olo Lightweight paddle, a 13 ounce MTI Journey PFD, and two Tenkara fishing rods. I wanted to explore the perimeter of the pond which is difficult to access on foot and try my luck at landing some bigger fish in the “deep end of the pool.” I also hoped for a moose sighting along the shore.

Supai Adventure Gear Matkat Packraft on Flat Mountain Pond, White Mountains

I didn’t see anyone on the four-hour hike into the shelter, which is at the west end of the pond, and proceeded to set up my hammock. The four fishermen arrived a few minutes later and started fishing nearby with worms and nite crawlers, catching all the big fish nearby. I was envious. While fishing with live bait is a lot less nuanced than fly fishing with an artificial hand-tied lure, it does produce results.

I got my revenge hehehe, when I inflated my packraft and paddled out from the shore, illustrating my intention to out-fish them.  I could paddle out to where the fish were rising off shore and along the remote shoreline, indicated by the splashes and ripples of their jumps.

Pond fishing is very different from stream fishing and requires much greater patience. While Flat Mountain Pond is stocked by New Hampshire Fish and Game, the water is warmer and less aerated than in streams, so fish tend to be far more sluggish. The best time to fish is the two hours before sundown when the fish come to the surface to feed on insects.

Tenkara Fly Fishing on Flat Mountain Pond

I still caught my fair share of trout and I think perch (species identification is not my strong suit), but I didn’t score any really big trout as I’d hoped. I had some issues with stealth in the packraft which got blown around by the wind that races down the narrow long pond. It’s hard to be stealthy when trying to paddle with one hand while using your other to hold a fly rod. However, I managed to mitigate the wind somewhat but paddling into coves along the pond edge and sheltering behind trees, but couldn’t really fish the unprotected areas of the pond successfully.

This is the second backpacking, packrafting, and fly fishing trip I’ve taken in recent weeks where the wind has vexed me. I’ve been looking at various anchor options and using a drift anchor (also called a drift sock) looks like the best and lightest weight backpacking solution since the water acts as its own brake, slowing your drift, while not holding you completely stationary. Other commercial alternatives involve using a 1.5 pound metal anchor, float, and line, which is a bit more than I want to carry for backpacking use. Using a drift anchor or drift sock does require a proper attachment point on a packraft however, a worthwhile consideration if you plan on fishing from a packraft.

Porch mode is good for channeling cool breezes to a hammock

Fighting the wind got old after a while, so I paddled back to my campsite and fished from the banks for the duration of the day. I’ve been experimenting this year with long line Tenkara, fishing with lines that are 20′-30′ feet in length so I can fish bigger rivers and ponds. If you believe that Tenkara fly fishing is limited to small mountain streams, think again.

Then I ate a relaxing dinner and watched as a beaver tried to intimidate me with a territorial display, by cruising the pond back and forth in front of my camp site and slapping his tail against the water. I had another beaver display identical behavior on a previous packrafting trip this season at Upper Greeley Pond. Curious, because neither pond had a visible lodge and I’ve never experienced this kind of behavior when camping at a beaver pond before.

That night I went to sleep with the sunset as a cool breeze swept over the lake. I really enjoy camping with my Warbonnet Hammock, even in summer. It’s heavier than a tent or tarp, but the added comfort is so worth it.

Tenkara Fly Fishing on the Whiteface River

After fishing on the pond before breakfast, I broke camp and headed back the way I’d hiked in, intent on fishing the Whiteface River on the way out. This is no tame river, but a mountain stream full of huge boulders, drops, and pools that’s ideal for short line Tenkara. I love fishing rivers like this because it’s a puzzle to dissect their flows and figure out the best places for trout to hide.

I got lost again on the hike out, in a different place, and had to bushwhack back to the trail. You never know when you’ll need those map and compass skills in the White Mountains, but I’ve come to expect hard-to-follow trails in some of the more obscure regions of the forest and don’t mind the extra challenge one bit.

Flat Mountain Pond Trail East (Click for Interactive Map on Caltopo.com)

Total Distance: 11 miles with approximately 2000′ of elevation gain.

Disclosure: Supai Adventure Gear provided Philip Werner with a Matkat and Lightweight paddle for reviews, which will be published later this summer. All other products mentioned were purchased by Philip Werner using his own funds. 

           

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Want to Retire Early? You Need to Cut Expenses Now

It seems that many people under the age of 50 are planning for (or at least dreaming of) early retirement. Making that happen, though, requires a concerted effort. You’ll need to save an outsized percentage of your income, and invest it consistently.

You’ll also have to cut your living expenses, and probably by a lot. If you do that, you increase your chances of actually achieving an early retirement. That’s not where the work stops, though. You’ll need to keep those expenses down to a reasonable level in order to ensure that you aren’t forced to come out of your retirement later down the road.

Learning to reduce your spending is the other side of the retirement planning coin — and it’s one aspect that you absolutely can’t ignore.

Make Room in Your Budget for Saving A Lot of Money

Even if you are planning to retire at a traditional retirement age (like 65), it will be tough enough to accumulate a retirement portfolio capable of keeping you comfortable for the rest of your life. Many of us heard our parents talk about “a million to retire on,” but new studies suggest that number falls far short. Millennials are expected to need $1.8 million for retirement, on average, with their slightly-younger counterparts requiring $2.5 million plus. Start dreaming of a retirement age closer to 50, and your goals become much more difficult.

Retiring early means you won’t benefit from quite as many decades of saving and investing money. You also miss out on its accompanying compound interest. To compensate, you’ll either need a higher-than-normal rate of return on your investments or to save a higher amount of money. Since high rates of return are almost always accompanied by significantly higher risk, the emphasis will almost certainly need to be on the savings side.

If you plan to retire early, saving the usual recommended percentages of your income – 10%, 15%, or even 20% – won’t cut it. You’ll need to save a lot more.

Resource: Use our Financial Freedom Calculator to determine how much you should save

Let’s say that you are 30 years old, and you want to retire by the time you’re 50. That gives you a 20 year window to make it happen. If you decide that you will need a return from your investments of at least $40,000 per year, that will require saving about $1 million (applying the safe withdrawal rate of 4% to your investment portfolio).

By way of example, if you earn $75,000 per year, save 10% of your income (or $7,500 per year), and invest it at an average annual rate of return of 8%, you will have $368,142 by the time you’re 50. That clearly won’t get the job done.

In order to get to the magic $1 million mark, you have to save three times as much… or about 30% of your income. Investing $22,500 ($75,000 X 30%) per year for 20 years, at an average annual rate of return of 8%, will produce a portfolio of just over $1.1 million.

Related: How Much Do You Need To Retire?

It’s probably safe to say that most people could save 10% of their incomes with relatively little sacrifice. But saving 30% of your income is likely to be downright life-changing.

That isn’t just a matter of clipping coupons and cutting out cable TV, either. You’ll probably have to reduce or eliminate some serious expenses. You may have to commit to living in a less expensive residence, driving an older (paid off) car, or cutting out vacations.  To pad your savings, you might need to trim back a number of luxuries that many people consider “necessary” to modern suburban living.

It’s part of the price you will have to pay for the reward that is early retirement. How badly do you want it?

Hold a Retirement Dress Rehearsal

This doesn’t get nearly as much attention as investment strategies. But it’s the all-important B-Side to retirement planning, and much more so when it comes to early retirement.

Saving and investing money for retirement is obviously mission-critical. But you will also help your own cause by learning to live on less. After all, the less money that you need to live on, the less income your investments will need to provide.

By cutting your living expenses now, you will be preparing yourself for the time when you retire. This is more important than it seems on the surface. Lifestyles are all about habits, and habits are behaviors that you are comfortable with. Unless you expect to be downright wealthy by the time you retire, cutting basic living expenses is an important secondary strategy.

Also See: Think Retiring Early is Just for the Wealthy? Think Again

Say you earn $75,000 per year and take home $50,000 (after income taxes, 401(k) contributions, etc.). If you get comfortable living on that income level, you may find it very difficult to manage the reduced income that early retirement will almost certainly require.

If you condition yourself to living on less money now, the transition won’t be a problem later. By saving a high percentage of your income, you also force yourself to live on less money. That will reduce at least some of the stress from saving money, and serves as an important dress rehearsal for your actual retirement.

Make Your Money Last the Rest of Your Life

People who retire at traditional retirement ages consider this to be a major concern. If you are retiring early, it will be an even bigger worry. Say you can reasonably expect to live to 85. If you retire at 65, your money needs to last for 20 years. But if you retire at 50, it will need to last for 35 years.

Part of that will be accomplished by intelligently and consistently investing your money during retirement. But perhaps an even bigger side will involve expense control. The less money that you need to live on, the longer you can make your investment portfolio last.

This will be especially important during years, or even cycles, when the investment markets are not performing well. By keeping your cost of living low, you may be able to reduce the amount of money you withdraw from your retirement portfolio for living expenses.

Have a contingency budget — something like a secondary budget that you will employ during stock market down cycles. This can be even more effective at making your money last for the rest of your life.

Master the Art of the Allocation

If you’re serious about retiring permanently, you’ll have to be fully capable of living on a fixed income. That will require the ability to balance and allocate scarce resources. It’s the kind of discipline that you develop from living beneath your means. If you embrace it now, you’ll be a pro at it by the time you retire.

For example: a dilemma that you are very likely to face with earlier retirement is health insurance. You’ll be too young to qualify for Medicare, but since you are no longer employed you will no longer have the benefit of employer-subsidized insurance. You’ll have to be able to figure out a way around the issue. That will almost certainly involve reducing costs elsewhere in your budget.

Make it a habit – or better, a lifestyle — of cutting expenses and living on less than you earn. Adjusting to expense challenges will be easier to manage in the future.

Health insurance is just one (major) example where early retirement will force you to allocate your now-limited resources. It’s an acquired talent, but once you do you’ll be much better able to deal with the financial challenges that will await you in early retirement.

In Closing

No matter your ideal retirement age, it’s important to learn how to significantly cut your living expenses now. Save more, spend less, and figure out how much you actually need to live comfortably. If you can reduce your spending now, you’ll have a far better chance of accumulating the money that you will need to fund your early retirement. You’ll also have the discipline to adjust to a minimized cost of living, and deal with any financial hiccups that may occur.

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