How I Funded my IRA While Working Less

For a very long time money was the driving force leading me to work an absurd amount of overtime.  Much of it was going where it should; retirement savings in the form of a 401k and an IRA, the must haves like housing and food and of course the much-needed vacations.

One day I woke up to the realization that my time could be best used elsewhere.  I began to place a higher value on free time instead of making more money.

Spending quality time with my sons, one is a black belt in Tae Kwon Do, while the younger played baseball for a few years and then moved on to soccer, was important. I did not want to miss anymore of their achievements! I also wanted to be present to cheer them on, celebrate a win, and be supportive when that heart-breaking loss came about.  

I started looking around and found that I could earn passive income and thought to myself "I could do that" and make some extra money.  Boy, was I disappointed when I dug in.  There were many suggestions ranging from drive with this company to sell you skills or services.   All good money-making opportunities, but not passive at all.

The IRS defines passive income as income generated from rental activity or activities in which you do not participate.

Investing was off the table; I was looking for extra cash now, not for the future. I was also looking to cut hours from my work load not add any.

I decided to approach the issue from another direction. 

No passive income. Forget the side hustle.  I did something completely different.  This is what I did instead:

I got rid of cable TV.  No, I did not go full-on caveman.  I switched to a streaming service and still get my fill of TV. I read more too.  Annual savings $1,320.

Switched cell providers.  Apprehension had prevented me from doing this earlier, but the no-contract option sealed the deal.  Have not had any loss of service or quality and am now kicking myself for not going this route earlier. Annual savings $770.

I stopped the every week (Sunday) restaurant dinners.  I did not actually get rid of them altogether, but cut back to a more affordable once a month routine.  These outings have always been fun.  They are less common now and mean more now that they are "rare".  Must be the quality over quantity, less is more thing.  Annual savings $1,770.     

We are a "pizzaholic" rabid sports fanatic bunch here.  So when game time arrived one was always ordered.  After the third or fourth game I realized that at $25 a game, this was quickly becoming an expensive activity.  I purchased a jar of red sauce, a bag of mozzarella cheese and some pita bread.  All for about $20. This was enough for four or five games. A few minutes in  the oven and we were done.  As cheesy or toasted as wanted. Not kidding' we are pizzaholics!  I double checked my numbers on this one. I could not believe it.  Annual savings $850. 

Saved almost $5,000; not quite enough to fully fund an IRA, but close.  Less time at work and more free time to spend with my children is a win on many levels.  Our quality of life did not lessen; it actually improved.  We did not miss anything that was changed, so that is another plus.

How have you funded your IRAs? Have you used a similar approach?


The views here expressed are all my own and are not legal, professional or financial advice. Consult a professional before investing. Referral links may be found throughout. I only recommend products I believe in.  This site presents links to other sites but is not responsible for their content or privacy practices.