Those headlines sure grab you.
Some twenty-something out there saved $500,000 over five years so they could retire before 30. Admirable and Instagram-worthy, but it often means a long stretch of denying yourself things to hit that retirement target. Suddenly Starbucks is off-limits. Driving becomes a moral failing. You might even cancel your gym membership (or downgrade to Peloton?). Ouch.
I’ll cheer for anyone who pulls off “Millennial FIRE” — the willpower, the discipline, the financial smarts are impressive. Many of these young adults watched the Great Recession and decided they wouldn’t let employers, banks, or Wall Street determine their future. So they live lean or chase higher pay.
But do some people take it too far? I’ve heard of folks taking only cold showers to save on utilities and using dumpster finds as furniture. Is it worth sleeping in a van by the river to retire in your twenties? Let’s dig in.
When I started chasing FIRE in late 2014, I went all-in. I learned every finance hack, refinanced with a 5/1 ARM to motivate early mortgage payoff, and started biking everywhere—even in brutal Minnesota winters. Starbucks was banned.
Notice how often I said “I.” My wife, already frugal, wasn’t comfortable with that extreme approach. I had to dial it back because I didn’t bring my partner on board early. We were already living small, and then we had twins—so I eased up to keep peace at home. Starbucks returned.
Over the next five years I kept grinding at work; a tight five-year goal fuels a 9-to-5 hustle. I also pushed into real estate to build a small income stream. Those rental dollars didn’t go straight into a retirement pile, but they covered more than four years of childcare without wrecking our budget.
Once daycare costs dropped (hello, kindergarten!) and the mortgage was paid off, buying some things we wanted became easier. Starbucks was back on the menu, and yes—I even have a rewards app on my old iPhone.
Not to be preachy, but a few big expenses are worth avoiding or limiting while pursuing FIRE. These are the items that make the biggest dents in your savings and that you probably won’t miss in the long run:
1.) Power boats, jet skis, and similar toys. They’re fun for a while, then boring—or expensive to store and maintain. I’d rather play water frisbee or rent a pontoon with friends for the day.
2.) Frequent air travel. Your carbon footprint will thank you. Even if you have miles, consider limiting flights to once a quarter—or better yet, every six months—and save for really memorable trips.
3.) Big houses. More space means higher property taxes, maintenance, utilities, furniture, and time spent fixing things. Housing is one of the biggest long-term financial decisions you’ll make. A smaller home can nudge you toward minimalism and closer family time.
4.) Car payments. Avoid falling in love with monthly auto loans. Buy something practical and pay cash when possible. Nice cars are sweet, but you won’t regret skipping one at the end of life.
5.) Dining out all the time. Treating yourself is fine, but make cooking at home your default—aim for 95% at-home meals. When you do eat out, it feels like a real treat.
6.) Cable and satellite packages. Cut the cord. Most people now stream or use an antenna for basics.
7.) Unnecessary salon visits (especially for guys). Learn to cut your own hair—and your kids’—and save the trips for special occasions.
Before the pitchforks come out: yes, we indulge sometimes. A few small splurges over the past five years:
1.) Starbucks. We average 2–3 espresso drinks a week, use rewards when we can, and sometimes walk there on a winter weekend to get out of the house and play Uno with the kids. I’ll take a splash of heavy cream in my Americano, thanks.
2.) Travel. We escape winter with a yearly flight to warmer places and take a summer road trip, usually renting an Airbnb or VRBO. Travel adds up, but we use points and keep it affordable. The memories are worth it.
3.) Dining out. Date nights matter—especially once you have kids. After a week of cooking, taking a night off and going out as a family or as a couple is worth it.
I even signed up for Disney+ because I can’t resist Baby Yoda. We added it to the Airbnb so it can be a small business expense and a perk for guests.
I asked friends on Twitter what they’d give up while saving a nest egg. Here’s a taste of their answers:
– Bob Tawcan: It depends on how you define deprivation. We cut heating, electricity, and water use—some see that as deprivation, others don’t.
– Gwen at Fiery Millennials: I bought many household items secondhand and kept my old car. Later I realized I wanted nicer plates, silverware, and décor, so I’m upgrading selectively.
– Solid Dividend: Clothes—keeping items until they’re nearly worn out. Same with shoes.
– Brett Neal: Expensive gear—full carbon mountain bikes, airplanes, new toys that just swallow money.
– Joe at Retire by 40: We downsized from a 2,000 sq ft house to a 1,000 sq ft condo to be in a more walkable area. It saved money and worked well for us.
– Stopped Ironing Shirts: Cars and restaurants. Our cars were old; we kept them and didn’t dine out much.
– Michelle at Frugality and Freedom: I skip hotels—hostels, shared Airbnbs, or housesitting work fine.
– Julie at Millennial Boss: Time. I fill my days with side hustles, so time is the deprivation.
– Kristine at Frugasaurus: Secondhand shopping and commuting by bike or bus are normal for us and probably won’t stop once we’re financially comfortable.
– Hannah Rounds: We “house hacked” by renting out part of our 1,400 sq ft home and chose to be a single-car family. That helped us make big progress on less than six figures of income with two kids in daycare.
– Kate at Goodnight Debt: I gave up living “normally.” I don’t buy what society expects me to buy. It’s easier to fit in, but I’d have way less money.
Kate hits a key point: many of us feel pressure to live like everyone else and accept the judgment that comes with a smaller lifestyle. Don’t buy into that.
Ask yourself: are you happy with how you live? If FOMO hits, figure out whether you’re missing material things or relationships. The latter matters more. Road trips with friends, inexpensive gatherings, and time outdoors still make great memories without big costs.
We plan to visit a few national parks soon—hike until you drop.