This Growing Trend Could Be the Ultimate Life Hack To Retiring Sooner
Retirement isn't based on age. It's based on a mathematical calculation where you can cover your living expenses while fulfilling the 4% withdrawal rule.
If you spend $100,000 per year, then you need a $2.5 million nest egg at typical retirement age. However, if your expenses were substantially lower, you wouldn't need as much to retire and could do so earlier with less invested.
As people try to make the numbers work, more of them are turning to homesteading. Backyard gardens are an easy way for most people to get started, and some people are also moving to rural areas and setting up their own farms.
"People are realizing that many of the skills our ancestors took for granted can provide serious financial benefits today," said Vince Braun, founder and CEO of HealthiStraw, a family-owned Canadian company specializing in premium, sustainable wheat straw products.
High Metrics: 7 Ways To Tell If You’re Rich or Middle Class — It’s More Than Your Paycheck
Sign Up: Start Growing Your Net Worth With Smarter Tracking
Homesteaders Grow and Process Their Own Food
Homesteading can work wonders for your grocery bill once you make your own food. Backyard gardens can produce many fruits and vegetables. It's an easy way to get started and some people opt to buy chickens so they can get free eggs. A single chicken can lay 100-300 eggs per year, depending on the breed.
"Proper bedding is essential for healthy, productive hens," said Braun. "Clean, absorbent straw bedding keeps coops dry and odor-free, which means healthier birds and better egg production." Taking good care of your birds isn't only humane; it ensures they take care of you at breakfast time.
You can also follow the same approach with fruits and vegetables. Not only will you get the immediate savings of making your own food, but you also reduce other expenses, such as transportation costs you would incur by driving to the local grocery store.
Homesteaders Save Tons on DIY Cleaners
Homesteaders aren't just great at making food. They aim to become self-sufficient in multiple facets of their lives. Some people use basic ingredients like white vinegar, baking soda and castile soap to create their own cleaning products. Braun estimates the typical person can save $300 to $500 per year with this approach and it doesn't even require owning farmland.
You can start saving money with DIY laundry detergent even if you live in a studio apartment. Those savings make it easier to invest in your portfolio, but it also represents another expense you won't have to worry about anymore. It's possible to produce DIY laundry detergent and other cleaning products for pennies per batch.
Producing your own cleaning products can shield you from supply shocks and inflation. Most household cleaning products have 6-24 month shelf lives, so it is possible to plan ahead when making your own.
You Can Get Started With Small Steps Before Committing
You don't have to know every homesteading strategy to get started. You can plant one type of vegetable or create a single DIY cleaning product and use that small win as momentum. Braun suggests taking small actions and compounding them over time as the results become more apparent.
"When families see how much they can save on groceries by growing lettuce or tomatoes, they often expand into other areas. The confidence gained from successfully making cleaning products leads to trying food preservation or chicken keeping," Braun said.
However, it is best to invest in quality materials instead of working with the worst possible options. Spending a little extra on the right materials can ensure you maximize your output as a homesteader and boost your overall savings.
"What we've observed is that homesteading practices work best when people have quality materials to work with, "Braun said. "Using the right supplies makes these money-saving practices more successful and sustainable long-term."
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
More From MoneyLion:
Discover a Smarter Way to Keep Unexpected Expenses From Derailing Your Budget
The New Middle-Class Trap: Making $100K but Living Paycheck to Paycheck