Retire early with the awesome power of CIP

We are all naturally interested in ways to allow us to retire early – no one wants to work any longer than necessary. Some years ago I used to work in an automotive plant, and the CIP principles they employed there stuck with me for life. Continual improvement process (CIP) can be defined as a permanent on-going effort to improve the effectiveness and efficiency of a task or objectives.

Break your goal down to a task and subtask

Our overall goal is to retire early by achieving financial independence. We achieve that by:

  • Reducing expenditure allowing us to save and invest more
  • Earning extra money allowing us to save and invest more

CIP retire early

To minimize expenditure, lets say for example we want to focus on saving housing costs. If you are already a homeowner a CIP task list could look something like this:

How can I reduce my housing costs?

  • Lower my mortgage costs by switching to a cheaper provider/ use a broker/ offset mortgage against savings
  • Rent a spare room if possible to gain income/ help to pay mortgage
  • Do I really need this size of house? Can I move to a smaller house/ apartment and/or to a cheaper area?
  • Do I need to own my home? Would renting be a cheaper option and one that allows me to invest more capital?
  • What is the smallest and most affordable rental acceptable that will allow me to save even more?
  • Can I house or property sit or do some work in exchange for accommodation that will allow me to save the maximum possible to retire early?

Lets have a go at transport costs, for example:

How can I reduce my car expenses?

  • Lower my car insurance costs by switching provider/ using a broker
  • Lower my car maintenance costs by switching from a main dealer to an independent
  • Reduce my fuel costs by searching for the cheapest outlets
  • Reduce fuel and maintenance costs by undertaking an ‘efficient driving‘ style
  • Do I need this car? Can I switch to a smaller or more affordable model that will be cheaper to insure and maintain?
  • Learn to do basic car maintenance to save on servicing costs
  • Is it essential that I have a car? Can I use alternative public transport that will enable me to save more?
  • Can I manage my transport needs simply by cycling or walking to save the maximum amount, speeding up my ability to retire early?

Finally lets take a look at food costs:

How can I reduce my food costs?

  • Can I reduce my regular trips out to restaurants?
  • Do I really need to eat out at restaurants? Can I reduce my costs by substituting for more affordable takeaways or supermarket ready meals?
  • Do I really need to buy ready meals? Can I learn to cook my own meals that are fresher and more affordable?
  • Can I switch to a more affordable/budget supermarket chain to save more?
  • Can I switch from branded to unbranded items and take advantage off promotional and reduced offers to save further?
  • Can I grow my own vegetables, fruit and other produce to save the maximum possible and potentially sell or trade some to provide a small income?

Lets now apply it to making money:

How can I make more money?

  • Can I negotiate a pay rise in my existing job or learn additional skills to get one?
  • Can I work overtime to gain additional income?
  • Can I switch to a different company or job role that will allow me to gain a higher income?
  • Can I take on a second part-time job to achieve more income?
  • If I own a property, can I rent a spare room for additional income?
  • Start a small side business e.g Ebay/Amazon to gain extra income.
  • Invest my money to provide me with a passive income stream.

CIP and the ability to retire early

You can see that CIP is a continual and never-ending process. By breaking tasks down into smaller individual sub tasks you can make substantial incremental changes and large capital savings overall. You keep drilling-down to maximise efficiency, which will supercharge your power to retire early. The frugally minded will benefit exponentially from this principal.

Leave a Reply