People waste 70 percent of their money on these 3 things

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Your pension is still light years away, do you think? Perhaps, but when you get to the prime of your age without having invested your money well, your retirement will be pushed back a little more.

Saving so much in 40 years of work that you can live off it for the rest of your life is not that easy. But you can learn a lot from those people who have reached their financial goal for retirement years before the actual entry age.

Grant Sabatier, a self-made millionaire in his mid-30s who runs the financial blog blog Millennial Money, noted on his website that Americans spend an average of 70 percent of their money on their homes, getting around, and eating ( if you deduct income tax and social security).

Is that familiar to you?

In some parts of the United States (such as New York) this percentage is even higher. The same is true in Germany if you live in cities like Munich or Stuttgart. These high expenditures mean that many do not even want to think about saving. But that’s exactly where your best option to save for retirement lies, say Sabatier and other experts.

If you spend less in the areas of housing, transport and food, “then you can pay the rest directly,” writes Sabatiert at Millennial Money. And further: “If you move into a smaller apartment, walk to work and cook at home, then you can save 25 percent and more.”

Of course, to get there you have to get creative, but here are a few guidelines.


A third of Americans pay too much for their home. There is one guideline you should use when choosing an apartment: It should only cost you 30 percent of your gross income or less per month.

In order to make the best possible progress with saving, you should, in the best case scenario, limit your living space even more. If you can find an apartment on which you spend less than 25 percent of your net income, then you are very good at it.

Even billionaire Warren Buffett tries to keep his housing expenses down. Buffett lives in a humble house that’s worth just 0.001 percent of his property.

Warren Buffett house Omaha
Warren Buffett house Omaha

Mode of Transport

In addition to housing, transportation is a real money-devourer, according to data from the US Bureau of Labor Statistics. Americans borrowed more cars than college last year.

It’s good to have a safe car. But consider that you have to pay around 500 euros over six years. If you really want a car: either pay for it immediately, or if not, pay for it in less than three or four years.


As reported, eating out makes up 43 percent of the average American family’s total food spend – this is a big savings.

One area in which you can save a lot if your social life is not to suffer as a result is in ready-made meals (it is better to buy individual foods that you can cook in different dishes). Dietary supplements cost a lot of money and are of no use anyway.

Sabatiert saved more than a million dollars in five years this way. So it has paid off for him to put something back into these areas.

“At the end of the day it’s a personal choice, but I was happy when I moved to a smaller apartment closer to where I work and ate less in restaurants,” he writes. “And now that little subtle difference has paid off – I’ve saved $ 13,000 a year like this.”


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