My Top Financial Hack: Front Loading Your Life

Plant a Tree Saving Money Proverb

I love this quote – it relates exactly to my top financial hack – front loading your life.  I’m a big believer that you need to do as much as you possibly can as early as you possibly can.  It’s so much better to load up on savings and investments in your 20s versus your 30s.  But if you’re in your 30s already, it’s much better to start now than in your 50s or 60s.

That’s why I wanted to share some strategies and reasons for front loading your life.  Yes, it may be a small sacrifice up front, but it will pay dividends for years to come.


Why You Should Be Front Loading Your Life

Front loading is simple: stash as much money away as early as possible.  It’s so much easier to max out your 401k when you’re younger, before you have large expenses, kids, and other things that add up.  It’s also easier when you’re younger to make the small sacrifices you need to make more money and save more money.

The truth is, you need to be front loading – whether you’re in your 20s or later.  Front loading helps you because:

  • The Power of Compound Interest will maximize your savings and investments over time
  • It gives you more freedom when you need it later in life
  • You have the ability to front load easier earlier in life

But if you don’t know where to start, here are some simple (and not so simple) suggestions.


Strategies to Front Load Your Life

There are a couple of ways that you can really front load your life for success – but it does involve some sacrifice.  Here are some strategies that you should consider to front load your life.  Even if you’re already in your 30s or 40s, you can use these as food for though for reducing expenses.

Minimizing Housing Costs

One of the biggest ways that you can front load your life is to live at home while in college or after graduation.  Since housing is typically your biggest expense, cutting back or eliminating that and, in turn, saving that money, can put you on the fast track to financial success.

Let’s look at two scenarios: living at home rent free, and living in a shared apartment, where your share of the rent is $500.  Let’s say that, in both scenarios, you have an extra $100 you could save as well.  So, if you live at home, you’re saving $600 per month, where living in an apartment only saves you $100 per month.  Just look at what this can do for your savings in just 4 years:

Living at Home Money


Just living at home puts $24,000 more in your savings account in just 4 years!  If you do nothing else, and invest that money at age 25 in the stock market, it will be worth $521,000 at age 65.  If you only have $4,800, it will only be worth $104,000 at age 65.  That’s the power of compound interest!

Prolong Large Purchases as Long as Possible

Another key to front loading your life is to prolong large purchases as long as possible.  By this, I mean don’t buy that expensive car right out of college – keep driving the beater car you had in high school until it dies.  If you really need a car, stick to an old used car that is inexpensive.  Or better yet, avoid buying a car at all if possible – it’s a strategy that Mr. Money Mustache is all about.

But there are other large purchases that tend to plague recent grads as well: clothes, computers, watches, vacations.   All of these things can wait.  Imagine if you combined your savings with housing with the savings you could achieve by avoiding large purchases – think of how rich you will be!

Maximize as Much as You Can

Beyond saving and avoiding large purchases, you should also maximize investing accounts as much as you can.  Try to max out your 401k at work, and make sure that you contribute the max to your IRA each year.

While you’re young is also the best time to start a side hustle, and leverage that extra income to boost your savings.  It can be much, much harder to maintain a money-making side hustle once you have a family!  Leverage your youth!


Front loading your life is a financial hack that empowers you to save as much as possible early on by living frugally and making certain sacrifices.Final Thoughts

The goal isn’t to be frugal forever.  In fact, the goal should be to front load as quickly as possible so that you can be less and less frugal as life goes on.  The few early choices you have can make a huge difference later in life.

If you can save and do a few smart things early on, you can live the life you want forever.

What other tips and tactics do you have to front load your life?  Are you a believer in this strategy?

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  1. says

    I’m a huge front loader guy myself, but I don’t even think I can comprehend the benefits in the future quite yet – I just know they’re going to be AWESOME. I wish there was some way to just see your “future self” for a hot second while doing this to even more motivate us to keep going :) As a kid/teen/person in your 20s the last thing on your mind is saving for the future! Which is why I like reading all those early retirement blogs… they get to see the future all mapped out because they track everything and forecast. I love it.

  2. says

    The wife and I are definitely believers in the power of compound interest. We did not save much in our 20’s but we are in our early 30’s now and really seeing that these next few years are critical to front loading.

    • says

      Jane and I are in the same position. While we
      didn’t go wild in our 20’s we certainly didn’t do ourselves a lot of favours.
      Since our early 30’s however we’ve been pretty committed to front-loading. We
      keep our living expenses pretty modest and socking away the savings into
      investments. Like J – the early retirement and financial independence blogs
      help to keep us motivated!

  3. Free to Pursue says

    I am a front loader. Just wish I had loaded EVEN MORE up front. At least I’m in my thirties and not later…still early enough for me to save up big time and make it pay off through compounding.

  4. Impatient says

    You didn’t even mention the biggest reason of all to front-load your savings: it’s a lot easier to change your habits and start spending MORE money than it is to spend LESS. I’m now in my 40s. We did a great job of front-loading our savings in our 20s and 30s and so were able to move into our dream house when I was 41. The house is awesome and we can afford it thanks to our savings. But if we didn’t have those savings, it would be *extremely* difficult to go back to living frugal, for many reasons.

  5. Penny says

    The thing that made the biggest difference to me was sharing with two grad students in my early twenties, even though I was earning a good wage. So we did lots of cheap/free things together, allowing me to invest a third of my income.

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