If you want to retire earlier, you need to spend less and invest more money.
To do that you need to get a bang for your buck even if it comes in an unexpected place.
I have to admit, I can be a bit of a snob. While I have no problem grabbing a designer label for a good price at TJ Maxx, I never dreamed of buying clothes at Costco. Socks, maybe.
Now I know, you can save a lot of money on Norstrom quality clothes at Costco. That savings can add up and actually help you retire earlier.
Snobbery went out the window when I saw the quality of merchandise and low prices at the Costco in Salt Lake City.
Since my kids are all grown up and out of the house, it’s just my husband and me. We let our Costco membership lapse when we moved to Utah five years ago. We no longer needed giant jars of mayonnaise and huge bags of Doritos for our shrinking family.
We missed Costco so we decided to renew our membership.
Who knew the clothes were a great deal?
I was pleasantly surprised at my great clothing purchases at Costco. After looking for some sleepwear all over town but not finding anything I liked at a reasonable cost, I saw a super soft and comfy Felina ladies sleep tank and wrap robe pair for $20.
I’d been looking in catalogs for similar items and with a price tag of $100+ just for the tank and $200 more for the robe, I passed. Looking at TJ Maxx or other discount stores, I never found what I was looking for until I spotted the sleepwear at Costco.
After wearing my tank and robe to sleep one night, I pleaded with my husband to pick up another set for me on his next trip to Costco! Even with the extra $20 for the second set, I saved $260 compared to the catalog.
Last weekend, I took a stroll through the clothing aisle and found a signature piece for summer – a white jean jacket. The material was high quality and well made. Once again, the price tag was $20. A similar jean jacket sells for $200 at Bloomingdales and boutiques online.
I love the $180 savings on the jean jacket.
Now I can sleep soundly in my soft tank and wrap and put on my stylish jean jacket to wear to an outdoor concert this summer.
I estimated I saved $440 with just these two purchases.
If anyone asks where I got the jacket, I’ll proudly declare, “I picked this up at the Costco Boutique.”
You might be wondering:
What difference does it make to save a few bucks here and there?
It makes a big difference!
By making good purchases today, you can retire earlier tomorrow.
Also check out this piece called 5 Money Moves That Will Make You Wealthier
Here is an example: You spent a smart $60 on sleepwear and a jean jacket.
Left to your own devices, you could have spent an additional $440 for similar items. If your goal is to retire in 10 years, let’s look at how many hours you can retire earlier by getting a bang for your buck at Costco.
Determine how much you make per hour with a “convert your salary to hourly” calculator. If you make $75K per year, using the above calculator, you make $36 an hour.
Divide $440 (saved) by $36 (you make per hour) and you can retire 12 hours earlier with a Costco purchase instead of retail!
Make a “Money Diva move:”
Invest the difference in your 401(k), a Roth IRA or a “non-qualified” (non-retirement) account. If you invest $440 today and earn an average of 6%, you’d have $788 in 10 years.
You could retire another 3 days earlier by making the smart Costco purchase and investing the difference at 6%.
Don’t work longer than you want or have to. Ask yourself, “Is this purchase today worth me working longer tomorrow?” If yes, you are golden. If not, put your credit card back in your wallet.
What smart “money moves” have you made lately? Share in the comments below.