“Many people expect expenses to drop,” warned Julien Brault, founder of MooseMoney, “but early retirees often travel more, eat out more and spend more on hobbies.”
Essentially, all the additional free time of an early retirement can lead to a gradual increase to daily spending.
Brault noted that “leaving work early usually means losing employer health coverage,” and health spending can spiral as a result. To protect against excess spending, practice living on your early retirement budget before it actually begins in order to help develop frugal habits. Also, be sure to research insurance costs long before you retire.