Original Post: Feb. 20, 2019. Updated: Oct. 10, 2025
Want to be a millionaire by 45? The secret isn’t a get-rich-quick scheme—it’s starting small, saving smart, and investing wisely today. We all have expenses that sneak up on us, but by cutting out small, unnecessary costs, you can redirect that money into investments that grow over time. Think you can’t afford to save? Life happens—bills pile up, water heaters break, rent’s due. I get it. But there are everyday expenses you can trim starting tomorrow that could add up to serious wealth. Here are 10 ways you’re spending money that could be working harder for you, plus how much you could save by investing those savings at a 7% annual return over 25 years (a reasonable estimate for a low-cost index fund, adjusted for inflation).
1. Paper Towels
Growing up, we used cloth towels for everything—drying dishes, wiping counters, even cleaning spills. Paper towels? They’re convenient, but they’re like tossing money in the trash. The average 12-pack of Bounty costs $10, or about $0.83 per roll. Using one roll a day adds up to $303/year. Plus, cutting paper towels reduces waste—a win for your wallet and the planet.
Savings: $303/year
25-Year Value (7% return): $18,600
Tip: Switch to reusable cloth towels. Wash and reuse them to save cash and reduce landfill waste.
2. Bottled Water
Thirty years ago, we drank from the tap or even the garden hose. Today, bottled water is everywhere, but it’s often just filtered tap water at a markup. A case of bottled water costs about $5/week, totaling $260/year. Tap water is virtually free and just as safe in most places.
Savings: $260/year
25-Year Value (7% return): $16,000
Tip: Get a reusable water bottle and a home filter (like Brita, ~$20 upfront). It’s cheaper and eco-friendly.
Note: If your tap water isn’t safe, prioritize affordable filtration over bottled water.
3. Fancy Coffee
Love your daily Starbucks mocha latte? It’s a treat, but at $5 a pop, five days a week, that’s $1,300/year. Brewing coffee at home costs pennies per cup, and you can still make it delicious.
Savings: $1,300/year
25-Year Value (7% return): $79,800
Tip: Invest in a $30 coffee maker and experiment with recipes to mimic your favorite brews. If you love the coffee shop vibe, treat yourself once a week instead.
4. Smoking
Smoking isn’t just bad for your health—it’s a budget killer. The average pack in the U.S. costs $6, so a pack-a-day habit runs $2,190/year. Quitting is tough but worth it for your body and bank account.
Savings: $2,190/year
25-Year Value (7% return): $134,500
Tip: Seek free or low-cost quit-smoking resources (e.g., 1-800-QUIT-NOW). Redirect those savings to an index fund.
Note: If you’re struggling to quit, small steps count—cutting back by half still saves thousands.
(That’s me as a dumb young punk smoking away my fortune.)
5. Cable & Streaming Services
Over 90 million Americans spend ~$100/month on cable and internet, plus another $10–$20/month per streaming service like Netflix or Hulu (Statista, 2023). If your total bill hits $150/month, that’s $1,800/year. The average American watches 5 hours of TV daily (Nielsen, 2022), working ~7 hours/month at $21/hour just to pay for it.
Savings: $600/year (by cutting one streaming service and negotiating cable)
25-Year Value (7% return): $36,800
Tip: Call your provider to lower your bill or switch to a cheaper internet-only plan. Try dropping one streaming service for a month—you might not miss it.
Note: If TV is your main entertainment, keep one service but prioritize the cheapest option.
6. Gym Memberships
If you hit the gym regularly, awesome—keep it up! But if you’re paying $35/month ($420/year) and haven’t gone in months, you’re wasting money. Motivation won’t magically appear by keeping the membership.
Savings: $420/year
25-Year Value (7% return): $25,800
Tip: Cancel unused memberships and try free workouts (e.g., YouTube videos or running). Rejoin only when you’re ready to commit.
Note: If fitness is a priority, look for budget gyms (~$10/month) or negotiate discounts.
7. ATM Fees
Banks used to reward you for deposits; now they charge you to access your own cash. ATM fees average $3/transaction, up to $11 for out-of-network machines (Bankrate, 2023). One withdrawal a week costs $156/year.
Savings: $156/year
25-Year Value (7% return): $9,600
Tip: Use your bank’s ATMs or get cash back at grocery stores. Plan withdrawals to avoid fees.
Note: If you’re rural with limited ATM access, budget for fewer, larger withdrawals.
8. Credit Card Interest
The average American carries a $7,000 credit card balance at 18% interest (Federal Reserve, 2023), costing $1,260/year in interest. That’s money for nothing.
Savings: $1,260/year (by paying off debt)
25-Year Value (7% return): $77,400
Tip: Focus on high-interest debt first (avalanche method). Transfer balances to a 0% APR card if possible.
Note: If debt feels overwhelming, start small—pay $50 extra/month to chip away.
Also, check out my Debt Destroyer Guide.
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9. Skipping Coupons
Coupons aren’t just for Sunday papers anymore. Supermarkets offer loyalty cards, and apps like Ibotta or Honey find deals instantly. Spending $2 on a paper and 15 minutes clipping can save $20/week on groceries, totaling $1,040/year.
Savings: $1,040/year
25-Year Value (7% return): $63,800
Tip: Only use coupons for essentials (e.g., toiletries, food). Avoid buying stuff just because it’s on sale.
Note: If clipping coupons feels like a chore, try digital apps to save time.
10. Lottery Tickets
Dreaming of hitting the jackpot? The average American spends $200/year on lottery tickets (Statista, 2022), but your odds are better building wealth through savings.
Savings: $200/year
25-Year Value (7% return): $12,300
Tip: Skip the tickets and auto-invest that money in a low-cost ETF. Your future self will thank you.
The Big Picture
If you implement some of these changes—say, cutting paper towels, bottled water, and one streaming service—you could save $1,000+/year. Invest that at 7% annually, and by age 45, you could have tens of thousands. Combine more cuts (e.g., coffee, smoking, debt), and the numbers grow fast:
- Save $5,000/year → $307,000 in 25 years
- Save $7,729/year (all tips) → $475,000 in 25 years
- Keep it up for 35 years → Over $1 million by 55
How to Start
- Prioritize: Tackle high-impact cuts first (e.g., smoking, credit card debt).
- Invest Smart: Open a low-cost index fund (e.g., Vanguard VTSAX) to grow your savings.
- Stay Flexible: Can’t cut everything? Start with one or two changes and build from there.
Small changes today can make you a millionaire by 45—or at least set you up for financial freedom. Review your budget, pick one tip, and start now. Your future millionaire self is counting on you!
Disclaimer: Returns assume a 7% annual return, compounded monthly, net of inflation. Actual returns vary due to market risks, taxes, and fees. Consult a financial advisor for personalized advice.
Frequently Asked Questions
Over $7,700 a year if you follow all 10 tips, which can grow to nearly $500k over 25 years.
Yes, while the market fluctuates, 7% is a standard ‘real’ return estimate after accounting for inflation.
Redirect it immediately into a low-cost total market index fund like VTSAX or VTI to start the compounding process.
Happy Saving
Earl
He didn't just save his way to freedom; he built a compounding engine. By combining "Bogleheads" index investing with a conservative options strategy, Earl turned a late start into a total victory. He’s not just talking theory—he’s living the math. Last year alone, Earl generated $78k in options premiums via the "Wheel" strategy and ~$400/month in passive dividends, proving that liquidity is the true key to quitting early.
Launched in 2019, EarlyRetirementEarl.com is a no-BS zone for dads and late-starters who want actionable, battle-tested steps to freedom. Featured on ThinkSaveRetire and Camp Fire Finance, Earl’s mission is to share the financial literacy he was never taught in school. No fluff, no gurus—just the math.
Not financial advice. I’m not a CFP or licensed advisor. All numbers are historical; markets fluctuate. Past performance is not indicative of future results. Do your own research and consult a professional.
